New Delhi: The government is making vigorous efforts to achieve the target of mixing 20 percent ethanol in petrol. The target for this has been set by 2030, but the government wants to achieve it by 2025-26 itself. Its aim is to reduce dependence on crude oil imports, in which ethanol mixing will help a lot. This will reduce the burden on the government treasury, as India is one of the largest importers of crude oil.

But, Crisil ratings say that to achieve the target of 20% ethanol blending in petrol by 2025, more sugarcane will need to be used. This will not only increase ethanol production, but will also greatly benefit mill owners who are facing financial difficulties. This will also improve the cash flow of sugar mills, as they will get money for ethanol supply directly from petroleum companies. Sugarcane farmers can also benefit from this.

According to Crisil Ratings, if the government has to achieve the target of blending 20% ​​ethanol in petrol or producing 990 crore liters annually by Ethanol Supply Year (ESY) 2025, then effective use of both grain and sugarcane feedstock will be required. Annual ethanol production from grain is expected to increase to 600 crore liters by next season. The production estimate for this season is 380 crore liters. The remaining ethanol will be produced through sugarcane.

Crisil Ratings report says that last year's irregular rains may have an impact on sugarcane production. In such a situation, ethanol production from sugarcane is expected to be limited to 250 crore liters in the current season. At present, sugar production is not a matter of concern for the government. Therefore, more use of sugarcane can be allowed for ethanol production. A large part of the remaining ethanol will be produced through grains.