Ethanol programme saved Rs 1.90 lakh cr in forex since 2014-15, says govt amid row over E20 fuel

Addressing a conclave organised by the Grain Ethanol Manufacturers Association (GEMA), Joint Secretary in the food ministry Ashwani Srivastava said ethanol has become central to the agricultural economy by creating new markets for surplus crops and reducing India’s dependence on imported crude oil.

Ethanol-blended petrol (EBP) programme has resulted in saving of more than Rs 1.90 lakh crore of foreign exchange with the substitution of more than 310 lakh tonnes of crude oil from ethanol supply in 2014-15 up to 2026. Besides, it has also led to a net CO2 reduction of approximately 930 lakh tonne, he said.

Srivastava said the EBP programme, which began with sugarcane-based ethanol, has ensured timely payments to cane growers and made the sugar industry more financially viable, with arrears owed to sugarcane farmers now at their lowest level ever.