This document discusses the potential for sugarcane ethanol production in India to meet its fuel and chemical needs. It notes that India imports over 60% of its oil and will become one of the largest oil importers by 2025. Producing ethanol from sugarcane could meet a significant portion of India's fuel needs, reducing imports and generating income for farmers. However, policies around ethanol production and use need to be standardized across states to incentivize growth in this sector.

1. SUGARCANE ETHANOL – ACHIEVABLE BIOFUEL TARGET
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2. Total Energy ConsumptionTotal Energy ConsumptionTotal Energy ConsumptionTotal Energy Consumption
In 2006, India was the seventh largest net importer of oil in the world.
With 2007 net imports of 1.8 million bbl/d, India is currently dependent on imports for 68 percent of its oil consumption.
EIA expects India to become the fourth largest net importer of oil in the world by 2025.
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3. Alcohol requirementAlcohol requirement
Alcohol based chemical Industries: 1,100 million Lts.
Potable Alcohol requirement: 1,000 million Lts.
@5% ethanol Blending : 600 million Lts.
@10% ethanol Blending : + 600 million Lts.
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3,300 Million Lts.
India produces 1.3 billion Lts and requires almost 2 billion Lts if it has to cater 10%
blending.
Petrol Consumed in 2006-07: 9,295,000MT.Only 0.64% of petrol is replaced with
Ethanol.
Alcohol at 10% level requires another 10-15 million Klts, so a possible acreage
growth of 25-30Million ton based on price rewarded to farmer.
We have been discussing only Road, we are yet to talk of Rail,Ocean,Air Freight using
Ethanol.
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4. Potential for ethanol in IndiaPotential for ethanol in India
The direct employment potential is likely to be
at least 50 times that of a Petroleum refinery.
A 6 billion liters ethanol production could save
an estimated around US$1 billion in foreign
exchange in diesel / petrol equivalent.
This in turn would provide an additional income
per year to the tune of Rs 13000 Crores at an
average price of Rs. 1300 per tone.
Petrol consumption in India during 2006-07 is
9,295,000 MT and only 0.64% of petrol is
replaced with Ethanol.
At 10 per cent levels India would need at least
1,200 million liters of ethanol. Purchases of
sugarcane, the primary feedstock for ethanol
production would be about Rs 12,600 crore at
current prices.
Year
Gasoline
Demand
MMT
Ethanol
Demand
Th KL
Molass
es
Produc
tion
MMT
Ethanol
production
Utilisation of ethanol
Molas
ses
Th KL
Cane
Th KL
Total
Th
KL
Potabl
e
Th KL
Industry
Th KL
Balance
Th KL
2001-027.07 416.14 8.77 1775 0 1775 648 600 527
2006-0710.07 592.72 11.36 2300 1485 3785 765 711 2309
2011-1212.85 756.35 11.36 2300 1485 3785 887 844 2054
2016-1716.4 965.30 11.36 2300 1485 3785 1028 1003 1754
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5. Sugarcane
 Area Under Sugarcane : 3,329,000 hectares
Production of Sugarcane (Yield) : 65 MT/Hectare
No of Factories in Operation : 500 & above
Average capacity of factory : 3500 Tone Per Day
Molasses Production : 6,500,000 MT
Molasses Percentage : 4.4%
Percapita Consumption of Sugar : 20 Kg
Percapita Consumption of Jaggery : 5Kg

Of the Total Cane Production:
12% will go in to Seed purpose and 5% goes to Chewing and Juice
manufacturing.
25-30% will go in to Khandasari and Jaggery Production.
Only 60% is being used for Sugar production.
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6. Policy handicapsPolicy handicaps
 The sugar industry is eagerly waiting for a reduction in excise duty on molasses, which is
currently high at Rs 750 a tone. The sugar industry has also sought for placing ethanol in
the "special category of goods" under clause 5A of the Central Sales Tax Act, so that the
state governments will not impose local taxes on this commodity.
 The government has not been giving due diligence to Ethanol Blending and Incentives
like Biodiesel. Each Individual state has its own policy for blending Ethanol as they have
their own Potable alcohol requirements which are major revenue earners and excepting
UP most states need to accept Juice conversion to Ethanol. Excise revenues of Alcohol
are 30,000 Crores. Trading and Excise regulations should be Uniform across all states
decontrolling Sugar.
 Ethanol price should be on par with MTBE or Biodiesel looking at it as Oxygenate, rather
than Calorific value. Also Blending should be at Pump with Proper Monitoring as this
could generate possible CDM.
 Allow Ethanol manufacturing from Juice and also utilize Transgenetics for Ethanol.
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7. Focal areasFocal areas
 Sugarcane Cultivation has been dropping drastically due to Agronomical, Management failures
handicapped by Labor shortage and Lack of Incentives.
 New revenue streams to better financial health of sector like Fortified sugar, Chemicals, Bioplastics be
looked in to.
 Work on Carbon, Energy and water Footprint across entire value chain to reduce Pollutants and develop
possible CDM templates.
 Allow free trade of ethanol and develop requisite infrastructure as Ethanol is Hygroscopic and also a
Class A product with high Flash/Fire point.
 Manufacture multiplex vehicles.
 Work on 2G distillation, Feedstock's supporting such initiatives with possible partnerships.
 Indian sugarcane Industry is facing acute shortage in manpower to Harvest and its cost. For above a
year Industry has realised importance of harvesting machines and have been importing few from China,
Thailand etc. Yet the pricing and numbers are key to its propagation. India being the second largest
producer of cane is lagging in bringing Innovation and building patents which also could have been
major source of Income.Mahindras have built Tractor based harvesters which is under field tests.
 Yeast and Enzyme market is slowly expanding in spite of Pricing Constraints. Major Players like
Novozyme, Genencor, Abmauri, Enzyme India, Richcore life sciences have presence. Yeast, Enzymes
and catalysts are key to success of Biofuel production and we need to build this Portfolio as we have
competition on Pricing from China.
 Biomass and its abundance is Critical Component to Biofuels production. Apart to Sugarcane, Sweet
Sorghum should be propagated by Sugar Barons as its available round the year and same infrastructure
could be optimally utilized. Biomass also generates Bagasse for Cogen and also for producing
Compostable plastics. We can slowly move towards Butanol from Ethanol in coming years with enough
research in place.
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8. Various Revenue StreamsVarious Revenue Streams
 The IEA says that the sugar sector has a potential to produce 5,100 MW of power through
cogeneration, which is 69 percent of total capacity. If the resources and technology are
improved, can produce almost 10,000 MW or 40 percent of the country's 2008 power
deficit. This Generates almost 5000 Crore worth CER’s.
 The Indian sugar industry has a turnover of Rs. 700 billion per annum and contributes
almost 22.5 billion to central and state exchequer every year.
 The enzyme utilization by Sugar Industry: $19M.
 If Sugarcane is successful to be proved as Carbon Sink then possible CDM is in several
Millions.
 Employment and revenue in secondary,teritiary functions of Sugar
Cultivation,Harvest,Milling,Trade is highest compared to any Food Crop.
 Since Cellulose content is almost double compared to other crops and the possibility of
enforcement of usage of Bioplastics opens new avenues as Market is expected to grow at
a compound annual growth rate of 129.8 percent in the next five to seven years.
 Fortified Sugar and Low GI Sugar are catching attention of Urban Consumer.
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9. Ethanol infrastructureEthanol infrastructure
 If successfully implemented blending program would enable usage of new flex vehicles
which would be a major contributor of Technology and revenue.
 Domestic infrastructure of higher capacities would be required both at Mill, Terminal for
blending along with New Pump outlets. Also would require shore tanks and Pipelines with
Class A facilities for export Trade.
 Uniform quality Analysis centers at all Distillation centers.
 New Stainless steel Tank Trucks for Transporting Ethanol from Mill to Terminals.
 Fire Safety Centers at all locations of Manufacturing,Blending,Sale.
 Same infrastructure could be used for Butanol.
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10. Role of Renewable in SugarRole of Renewable in Sugar
 Use solar for seed treatment, Distillation ,Sugar milling,Bagasse drying, waste
treatment operations.
 Move from Grid based Cogeneration to Storage technologies which would
generate higher revenues.
 Use Cellulose to optimize revenues.
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11. Replicating Proactive BrazilianReplicating Proactive Brazilian
ModelModel
 President Lula's proactive media approach to negate food versus fuel
controversy and finding Markets should be replicated by India.
 Australia also has vibrant Sugar Policy.
 Indian Print, Electronic media should be highlighted the negligence of this
Huge Potential Industry.
 We should closely work with Policy makers to discuss and bring in Proactive
changes which benefit this sector.
 Should if necessary seek legal course to counter actions which are hurting
Industry collectively.
 Need to Understand the Importance of building Common Platforms alike
Brazil,AU,Cuba etc, as will be easy to Voice Collectively.
 Research and Funding should be given due Importance as we are quite lagging
behind the above three and very many others.
 Soil , water and Air should be given attention to better practices, Yields in
Sugar. Propagate impact on health by Emissions from Various fuels and also
Economics with Crudes impact on national GDP.
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