Govt. Allows Unrestricted Ethanol Production from Cane Juice, Syrup, BHM and CHM in ESY 2025-26

The government has given sugar mills and distilleries the green light to produce ethanol from sugarcane juice, sugar syrup, B-heavy molasses (BHM), and C-heavy molasses (CHM) during the Ethanol Supply Year (ESY) 2025-26 without any restrictions.

The move, notified through a circular issued by the Department of Food and Public Distribution (DFPD), is aimed at boosting ethanol blending with fuel while safeguarding sugar availability for domestic consumption.

DFPD, in coordination with the Ministry of Petroleum and Natural Gas (MoPNG), will periodically monitor sugar diversion for ethanol production against the overall sugar output to ensure steady supplies for households across the year.

It may be noted that India’s ethanol blending journey began with pilot projects in 2001, followed by the launch of the Ethanol Blended Petrol (EBP) programme in 2003.

Initially, progress was limited, with just a 5 percent blend in select states, according to the reports. However, momentum picked up after the National Biofuels Policy of 2018, later amended in 2022, which advanced the target of achieving 20 percent ethanol blending (E20) in petrol from 2030 to the Ethanol Supply Year 2025-26.