Sugarcane biofuels have a lot of potential as first generation fuel for Blending(EBP) to be a game changer in curtailing growing Hydrocarbon imports into India and also minimising emissions as oxygenate.

1. Sugarcane Biofuels - India
Sugarcane is an important crop contributing to Indian Economy and Employment generation (IISR).
The Indian sugarcane industry is one among the largest agro industries. A Sugarcane factory provides
employment in all three sectors. Sugarcane cultivation in India has been an integral part to farming
community for several decades in few regions of South, West and Northern India; it has inherent
advantages of subsidy on Inputs, support from factory on Seed, Planting, and Supply chain of providing
Cutting manpower, Harvester for large farms, transportation of Cut cane to factory.
Almost all Indian plants have an agronomical team which monitors and advices farmers on Crop at each
growing stage helping them to maximize yields. With all sugarcane by products maximizing their
commercial value it has enabled both the factory management and farmer to continuously keep producing
the crop. Cogen and CDM has helped in maximizing revenue streams earlier and pricing of bagasse and
Molasses have gone up substantially almost enabling factory realize the same return on sale alike Cogen
and distillation.
Sugarcane has dual advantage of having maximum biomass and also high sugar content (TRS) which is
critical for maximizing yields of alcohol. The Total Sugarcane crop production is around 26 to 28, 00,000
MT annually (2018 an exception touching 30, 00,000 MT) (ICAR,SBI, sugarcane as energy crop).
This is more or less stagnated as apart to existing states (Two Major states Maharashtra and UP account
for 2/3rd
of volume) no new cultivation is happening in other states,climatic conditions; famer’s aversion
could be reason. A farmer has a kind of symbiotic relationship with crop he is growing and he is more
prone to stick to a crop which he understands rather than migrating to a new crop.
The affinity can be roped only when there is strong incentive to farmers under the factory setup or by
strong policy support. At present no such support is there for the crop as there is cyclic nature either
surplus or deficit and revenue streams are more dependent on sugar pricing. If and only if Sugarcane is
accepted as energy crop or some of the crop is diverted to direct Alcohol production alike Brazil which
annually decides on percentage of sugar and Alcohol production quotas then the vagaries of climate and
pricing will not impact the farmer’s outlook to continually cultivate the crop with rotation and maximize
yields. In the last one decade the only state which has improved its capacity and yields significantly has
been Karnataka,while other states like TamilNadu and AP had shutdown some of existing mills due to
less crop and also draught. Sugarcane being a climate sensitive crop requires Proper soil, water resources,
Agro climatic conditions, Infrastructure facilities and also proximity to markets which influence farmer in
taking up cultivation.
The various cane varieties cultivated for commercial purposes worldwide are species or
hybrids of the Saccharum genus, which in turn belongs to the grass family. Its geographical
origin remains a controversial subject, but in general it is acknowledged that it originated in
the South Pacific region, Java and New Guinea, and subsequently spread out from there
(Status of sugarcane genetic resources in India)
Germplasm status in India:
SNO Germplasm At Kannur At Coimbatore

2. International
collection
Indian
collection
Earlier
collections
Collections
made under
NATP
1 S.officinarum 764 - 1 8
2 S. barberi 43 - - -
3 S. sinense 29 - - -
4 S. robustum 145 - - -
5 S.spontaneum 67 398 619 379
6 Erianthus spp - - 6 -
7 Foreign hybrids 585 - - -
8 Related genera 150 82 235 90
9 Indian hybrids - 1158 3 -
10 IA clones - 130 - -
Total 1783 1549 864 477
One of the outstanding features of sugarcane is its extraordinary capacity for growth. It is not unusual to
find agricultural yields exceeding 100 tons per hectare annually on commercial acreages. When suitable
varieties are selected with the objective of maximizing biomass production, it is possible to obtain yields
as high as 300 t/ha. This high productivity rate is the result of a high photosynthetic efficiency, which
permits an increased utilization of solar energy and a higher coefficient for fixing atmospheric carbon
dioxide.
Further, sugarcane agriculture can be practised with a minimum consumption of chemical products and
highly compatible with the environment and soil conservation. An issue of the utmost importance, from
an ecological as well as economic standpoint, is the harvest of green sugarcane. The issue is not only the
eradication of pollution problems generated during burning, but most important, improved soil fertility
conservation, lower consumption of herbicides and the possibility of using part of the residues as fuel,
animal feed or raw material. Further, the use of fertilizers can be reduced significantly and in some cases
even eliminated, by recycling in the field the wastes and residues of the industry such as filter mud and
the liquid effluents as irrigation water.
For years,sugar has been virtually only commercial product obtained from Sugarcane.
Probably the only exception is the Ethanol Blend programme. A study of the alternatives for
diversification of sugarcane calls for an analysis of the different fractions that make up its
vegetative structure, which are shown in Table (Morphology of the vegetative organs
of sugarcane)
VEGETATIVE STRUCTURE OF SUGARCANE (% OF DRY MATTER)
Part Total Plant Part growing above ground
Clean Stalks 50 59
Tops 10 12
Leaves 25 29
Roots 15 - -
Total 100 100

3. These fractions in turn have the average composition shown in Table below:
SUGARCANE COMPONENTS (%)
Components Clean stalks Tops + Leaves
Total sugars 15,43 2,18
Sucrose 14,10 - -
Lignocelluloses (Fiber) 12,21 19,80
Ashes 0,54 2,31
Other 0,82 2,43
Total dry matter 29,00 26,00
Water 71,00 74,00
A study of the tables above clearly shows the importance of usage of the agricultural wastes (tops +
leaves), which represent nearly 40 % of the total weight. Likewise, the clean stalks are made up mainly of
soluble sugars; and bagasse constitutes the lingo cellulose portion. Soluble sugars, both those taken
directly from cane juice and those extracted during the intermediate currents of the sugar process (filter
juice, A or B molasses) or from final molasses may be transformed into products with a high value and
market interest through chemical or biotechnical processes.
Table below shows some of the principal products manufactured today on a commercial scale.
SUGARCANE DERIVATIVES (Chemicals manufacture from fermentation of sugarcane
products)
The main advantage of using Sugarcane juice for these products, rather than molasses, is the possibility of
having the bagasse as an energy source capable of satisfying the thermal and electrical demands of the
industrial process. For its part, cane bagasse represents a renewable source of fibrous raw material, which

4. can replace wood in many of its applications. Various types and selections of top-quality agglomerated
boards are produced from cane bagasse at present. (FAO)
It is estimated that world installed capacity for bagasse boards of different type’s totals approximately
800.000 cubic meters annually; nonetheless, this still represents only 2% of the total production volume.
In India, there are few bagasse board factories, which produce the so-called particle board. Likewise,
paper and cardboard of excellent quality may be obtained from bagasse,capable of competing with
equivalent products obtained from wood. The only area in which bagasse is at a disadvantage compared
to wood is the type of paper used for industrial purposes, which calls for high tenacity. This is impossible
to achieve with bagasse due to the features of its fiber, which is shorter than soft woods.
(Cane sugar and the Environment – FAO)
Sugar cane and Energy
The high photosynthesis of sugarcane makes it an important source of energy. A comparison of the
energy value of the Sugarcane biomass and the energy consumed in its harvest and cultivation shows a
ratio of 20:1. This makes sugarcane a biomass of enormous interest, as alternatives are under study to
reduce the rate of gas accumulation and consequent global warming, as a result of the use of fossil fuels.
The Sugarcane sugar industry creates its own fuel, bagasse,which is not only capable of satisfying the
energy demands of the factory but generating surplus electricity to the grid, with the consequent
ecological and economic benefits. Sugarcane is also known for its carbon sink properties and Australia
has been studying it for Carbon farming properties. (FAO)
The traditional sugar mill is highly inefficient from an energy standpoint, since it was designed to not be
forced to have bagasse surpluses. On average,steam consumption for the process ranges between 450 and
550 kg of steam per ton of cane processed. The furnaces in which the bagasse has traditionally been
burned for steam production have energy efficiency rates of approximately 60-65%; whereas it is possible
to achieve efficiency rates of nearly 90%, with heat-recovery designs and systems to reduce the final
temperature of combustion gases. (FAO)
These traditional energy schemes were designed to obtain precisely the electrical power required by the
factory as the steam produced by low pressure turbo generators passes through. In order to produce
surplus electricity at the sugar factory, steam consumption must be reduced in the process, furnace
efficiency must be improved; and at the same time, steam generation pressure must be increased. In this
case,it is possible to obtain surpluses of up to 100 kw-hr per ton of milled sugarcane. (FAO)
Environmental Standards and Legislation
India adopted comprehensive multilateral and bilateral instruments pertaining to the environment; at the
international level, conventions on the environment and natural resources have been entered into, which
are included in legal ordinances of countries. To an ever-increasing extent, ecological issues are being
reflected in international treaties, such as in funding projects and international co-operation projects.

5. Central and state environmental standards related to the sugarcane industry are those dealing with
conservation of water resources,pollution and emission released into the air, disposal of liquid wastes or
waste waters and solid wastes,noise and odors. (FAO)
MEASUREMENT UNITS FOR SOURCES OF POLLUTION
The World Bank demands that pollutant levels in effluents fromsugar mills not exceed the limits spelled
out in the table below. Effluent flow be reduced to 1.3 m3
/t with a trend toward reaching a level of 0.9
m3
/t by implementing water recycling.
POLLUTANT LEVELS IN EFFLUENTS OF SUGAR MILLS (WORLD BANK)
Limitations to Sugarcane distillation
Distilleries generate (a) spent wash from distillation column; (b) spent lees from analyzer column and (c)
Other wastewaters like fermenter washings, fermenter cooling, floor washings, spillage and cooling.
Among these,spent wash is of major environmental concern owing to its quantity and quality. About 10-
15 liters of spent wash is generated for every liter of alcohol produced and is characterized by high
percentage of dissolved organic (52,000–58,000 mg/L BOD; 92,600-1,00,000 mg/L COD) and inorganic
matter (1,660– 4,200 mg/L form of nitrogen, 225–3,038 mg/L phosphorus, and 9,600–17,475 mg/L
potassium etc.),dark brown color (2,38,000–2,52,000 Pt-Co units), high temperature (70-100oC) and low
pH (4-4.5). About 50% of the organic and inorganic matter is present as reducing sugars. Indian

6. spentwash contains very high amounts of potassium, calcium, chloride, sulphate and BOD as compared to
spent wash in other countries (Joshi, 1999). (Cogen India)
Policy Directives for Distillery
The effluent standards notified by MoEF, GOI vide GSR 176(E), April 2, 1996, require that the effluent
from distillery industry should have pH between 5.5-9; suspended solids 100 mg/L, and maximum BOD
level of 30 mg/L for disposal into water courses and 100 mg/L for disposal on land.
It is suggested that all efforts must be done to remove color and unpleasant odor, as far as possible. If land
application is envisaged as secondary treatment system, BOD is allowed up to 500-1,000 mg/L.
However,the drainage water from the land after such treatment has to satisfy BOD limit of 30 mg/L and
nitrate as nitrogen should not be more than 10 mg/L.
Further, the underlying groundwater should not have a BOD more than 3 mg/L and 10 mg/L of nitrate
(CPCB,2002). (Ipcbee)
Central Action Plans have been prescribed as “Charter on Corporate Responsibility for Environmental
Protection” for the heavy polluting industries by CPCB,GOI.
Accordingly, existing molasses based noncompliant distilleries are required to furnish bank guarantee and
action plan to concerned state boards to ensure compliance with any or combination of the following
measures:
 Compost making with press mud/agricultural residue/municipal waste;
 Concentration and drying / incineration;
 Treatment of spent wash through bio-methanation followed by two stage secondary treatment and
dilution of the treated effluent with process water for irrigation as per norms prescribed by CPCB
/MoEF;
 Treatment of spent wash through bio-methanation followed by secondary treatment (BOD < 2500
mg/L) for controlled discharge into sea through a proper submerged marine outfall at a point
Permitted by SPCB/CPCB in consultation with National Institute of Oceanography (NIO),so that
dissolved oxygen in the mixing zone does not deplete, less than 4 mg/L;
 For taking decision on feasibility of one time controlled land application of treated effluent, a
study will be undertaken within three months.
Till 100% utilization of spent wash is achieved, controlled and restricted discharge of treated effluent
from lined lagoons during rainy season will be allowed by SPCB/CPCB in such a way that the perceptible
Coloring of river water bodies does not occur. Further, the task force consisting of CPCB,SPCB,experts
and industry shall be constituted for monitoring the implementation of action points. For new distilleries
and expansion of existing distilleries (molasses based), the proposal without achieving zero discharge in
surface water / groundwater will not be considered by MoEF / SPCB (CPCB,2008).
The anaerobically treated spent wash is required to be further treated to cope with environmental
standards. A few options suggested are (i) evaporation in sludge drying beds or in mechanical evaporators
such as multi effect evaporators followed by incineration for potash and/or energy recovery; (ii) two stage
aerobic treatment followed by land application for irrigation purposes; (iii) two stage aerobic treatment

7. followed by tertiary treatment for discharge to surface waters and (iv) membrane treatment for reclaiming
water for reuse.
Particulate emissions in Sugarcane
Clean air, an essential component of a healthful environment, is a mixture of many different gases. Two
gases predominate: nitrogen, which makes up 78 percent of the volume of clean dry air, and oxygen,
which makes up 21 percent. Argon, an inert element, accounts for almost 1 percent of clean dry air, and
the remainder includes very small or trace concentrations of carbon dioxide, methane, hydrogen, helium,
ozone, and other gases. In the Earth's atmosphere,water vapour is also a significant component but the
most variable one, ranging from 0.01 to 4 percent by volume; its concentration in air varies daily and
seasonally, as well as geographically.
Air is considered to be polluted when it contains certain substances in concentrations high enough and for
durations long enough to cause harm or undesirable effects. These include adverse effects on human
health, property, and atmospheric visibility. The atmosphere is susceptible to pollution from natural
sources as well as from human activities. Some natural phenomena, such as volcanic eruptions and forest
fires, may have not only local and regional effects but also long-lasting global ones. Nevertheless,only
pollution caused by human activities, such as industry and transportation, is subject to mitigation and
control.
Most air contaminants originate from combustion processes. The advent of mobile sources of air pollution
i.e., gasoline powered highway vehicles had a tremendous impact on air quality problems in cities. It was
not until the middle of the 20th century, however,that meaningful and lasting attempts were made to
regulate or limit emissions of air pollutants from stationary and mobile sources and to control air quality
on both regional and local scales.
The focus of air-pollution regulation in industrialized countries was initially on protecting ambient or
outdoor air quality. This involved the control of a small number of specific criteria pollutants known to
contribute to urban smog and chronic public health problems. Toward the end of the 20th century, the
hazardous effects of trace amounts of many other air pollutants were recognized, and emission regulations
were implemented. Long-term and far-reaching effects of certain substances on atmospheric chemistry
and climate were also observed at that time, and cooperative international efforts were begun to mitigate
their global effects. (International Journalof Pure and Applied Mathematics)
The following table show emission standards for particles from bagasse furnaces established by credit
institutions (World Bank) and those in effect in various countries.
EMISSION STANDARDS FOR PARTICLES FROM BAGASSE FURNACES (WORLD BANK)
Country or
Institution
Emission standard forparticles,
mg/Nm3
Observations
South Africa 120 -
India 250
850
Grill-type furnace
Spreader stocker furnace
Mauritius Islands 400 -
Malaysia 400 -
Brazil 70 Preserved and metropolitan

8. 100
120
areas
New furnaces
Existing furnaces
World Bank 100
150
In general
Small furnaces
Control of particulates
Airborne particles can be removed from a polluted airstream by a variety of physical processes. Common
types of equipment for collecting fine particulates include cyclones, scrubbers,electrostatic precipitators,
and bag house filters. Once collected, particulates adhere to each other, forming agglomerates that can
readily be removed from the equipment and disposed of, usually in a landfill.
Because each air-pollution control project is unique, it is usually not possible to decide in advance what
the best type of particle collection device (or combination of devices) will be; control systems must be
designed on a case-by-case basis. Important particulate characteristics that influence the selection of
collection devices include corrosivity, reactivity, shape,density, and especially size and size distribution
(the range of different particle sizes in the airstream). Other design factors include airstream
characteristics (e.g.,pressure,temperature, and viscosity), flow rate, removal efficiency requirements, and
allowable resistance to airflow. In general, cyclone collectors are often used to control industrial dust
emissions and as precleaners for other kinds of collection devices. Wet scrubbers are usually applied in
the control of flammable or explosive dusts or mists from such sources as industrial and chemical
processing facilities and hazardous-waste incinerators; they can handle hot airstreams and sticky particles.
Electrostatic precipitation is a commonly used method for removing fine particulates from airstreams. In
an electrostatic precipitator, particles suspended in the airstream are given an electric charge as they enter
the unit and are then removed by the influence of an electric field. The precipitation unit comprises
baffles for distributing airflow, discharge and collection electrodes, a dust clean-out system, and
collection hoppers. A high DC voltage (as much as 100,000 volts) is applied to the discharge electrodes to
charge the particles, which then are attracted to oppositely charged collection electrodes, on which they
become trapped.
Particles that stick to the collection plates are removed periodically when the plates are shaken,or
"rapped." Rapping is a mechanical technique for separating the trapped particles from the plates, which
typically become covered with a 6-mm (0.2-inch) layer of dust. Rappers are either of the impulse (single-
blow) or vibrating type. The dislodged particles are collected in a hopper at the bottom of the unit and
removed for disposal. An electrostatic precipitator can remove particulates as small as 1 m (0.00004
inch) with an efficiency exceeding 99 percent.
State wise Production (Lakh tonnes)&Productivity(Tonnes/Ha)
(sugarcane.dac.gov.in)
S No State 2013-14 2014-15 2015-16 2016-17 2017-18
1 AP 120.09 99.87 93.53 78.3 79.48
Productivity 78.5 71.8 76.7 76.0 80.3
2 Assam 10.75 10.99 10.38 12.07 11.15
Productivity 37.0 36.7 35.3 37.7 37.2

9. 3 Bihar 128.82 140.34 126.49 130.36 165.11
Productivity 49.9 55.2 51.8 54.3 67.9
4 Chhattisgarh 0.22 0.49 0.68 8.48 12.47
Productivity 2.6 2.7 1.9 40.4 41.6
5 Gujarat 125.5 143.3 111.2 119.5 122.34
Productivity 72.1 68.9 70.8 70.7 66.5
6 Haryana 74.99 71.69 66.92 82.23 87.29
Productivity 73.5 73.9 71.9 80.6 76.6
7 Jharkhand 4.63 4.70 7.09 5.13 5.23
Productivity 69.2 69.5 69.5 73.3 69.8
8 Karnataka 379.05 437.76 378.34 273.78 299.02
Productivity 90.3 91.2 84.1 69.0 80.8
9 Kerala 2.21 1.49 1.38 1.14 1.22
Productivity 100.2 97.7 101.4 114.0 116.2
10 MP 31.73 45.67 52.81 47.3 54.30
Productivity 43.4 41.1 51.3 51.4 55.4
11 Maharashtra 769.01 846.99 736.8 522.62 726.37
Productivity 82.1 82.2 74.7 82.6 80.5
12 Odisha 9.37 7.23 5.77 3.44 3.41
Productivity 65.9 71.9 64.4 68.8 64.4
13 Punjab 66.75 70.39 66.07 71.52 75.33
Productivity 75.0 74.9 73.4 81.3 81.0
14 Rajasthan 3.63 4.09 5.31 4.89 4.04
Productivity 69.0 73.4 86.5 69.9 74.5
15 Tamil Nadu 324.54 280.93 254.94 189.88 165.62
Productivity 103.6 106.8 101.1 87.1 90.1
16 Telangana 33.76 33.43 24.05 20.61 22.17
Productivity 86.5 88.0 68.7 71.1 63.3
17 UP 1346.89 1330.61 1453.85 1401.69 1623.38
Productivity 60.5 62.1 67.0 64.9 72.7
18 Uttarakhand 59.4 61.65 58.86 64.77 71.42
Productivity 57.0 60.6 60.8 69.6 70.0
19 West Bengal 19.45 21.06 20.75 15.5 12.94
Productivity 114.3 118.8 119.2 73.8 76.1
20 Others 10.63 10.62 9.26 7.49 8.68
48.3 59.0 48.7 41.6 45.7
Total
Production
3521.42 3623.30 3484.48 3060.70 3550.90
Productivity 70.5 71.5 70.7 69.0 74.4
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Factory in
Operation
507 529 526 509 538 526 493
Acreages(000Ha) 4885 5100 5279 5341 5307 5284 4945
Molasses
Production(000Mt)
10970 11824 11744 10882 12482 10837 9026

10. (ISMA)
Name of sugar mill Ethanol production (in
year 2017)
Molasses production
(in year 2017)
Cogeneration of
electricity (in year
2017)
India Total 1651 million lts 2917 Million lts 5000 MW of power to
Grid
(Cogeneration in Indian Sugar Industry A Review)
Ethanol Qty for EBP in Million Litres
Annual Year Requirement Offered Finalised Delivered
2014 -15 1,559 1,311 887 674
2015-16 2,656 1,473 1,316 1,110
2016-17 2,809 1,172 807 665
2017-18 3,136 1,763 1,588 935
(ISMA)
Climate Change and the Kyoto Protocol
In the mid 1990’s, the international scientific community reached a broad consensus regarding the
existence of a phenomenon known as Climate Change, caused by the increase in concentrations of certain
gases in the air, such as carbon dioxide (CO2),methane (CH4),nitrous oxide (NOX) and chloride
fluorocarbons (CFCs), all referred to as greenhouse effect gases (GEG). From 1995, when the report was
drafted, to date, scientific evidence of the impact of global warming continues to grow.
The Kyoto Protocol, its definitions and mechanisms proposed to reduce the greenhouse effect open
interesting prospects for the use of energy biomass and the biofuels and ethanol markets to recover CO2
from the atmosphere. Sugarcane has excellent opportunities and competitive advantages compared to
other crops for production of biomass or as raw material for sugar and alcohol fuel production.
Indian Sugarcane Industry benefited from CDM by Incorporating electricity generation from bagasse in
mills and also capturing Methane. Post CDM India has incorporated Regional Energy Certificates. These
can be traded and utilised as monetary Income.
Oxygenates are hydrocarbons that contain one or more oxygen atoms. The primary oxygenates are
alcohols and ethers, including: fuel ethanol,methyl tertiary butyl ether (MTBE),ethyl tertiary butyl ether
(ETBE), and tertiary amyl methyl ether (TAME).
Oxygenates are added to motor vehicle fuels to make them burn more cleanly, thereby reducing toxic
tailpipe pollution, particularly carbon monoxide. Oxygenates are favored not only for their vehicle
emission benefits but also their blending properties in motor gasoline (e.g.,octane).
Typical Properties of Oxygenates
Ethanol MTBE ETBE TAME
Chemical formula CH3CH2OH CH3OC(CH3)3 CH3CH2OC(CH3
)3
(CH)3CCH2OCH
3

11. Oxygen content,
percent by weight
34.73 18.15 15.66 15.66
Octane,(R+M)/2 115 110 111 105
Blending vapor
pressure,RVP
18 8 4 1.5
Bioenergy to help combat climate change
Bioenergy is a vital component of India’s efforts to decarbonize energy production and limit global
temperature rise. Despite expected electrification of light vehicle fleets over the next severaldecades,
large numbers of vehicles will still rely on petroleum fuels which biofuels and other low carbon transport
fuels could displace. Aviation, marine and heavy freight transport are difficult to electrify and will require
the energy density that low carbon fuels can provide. (IEA)
The Biorefineries model is the best suited model for the industry to operate in Clusters and green
chemistry is the way for Industry to maximize its revenues and balance sheet. Two such groups which
have successfully demonstrated Green chemistry are Andhra sugars and Godavari Biorefineries which are
on east coast and west coast of India. For International trade from India having presence on west coast is a
must either for Imports or Exports and is the reason for Murugappa’s consolidation procuring GMR sugar
mills. Landlocked states are solely dependent on Inland trade and are most affected with swings of
surplus and deficit productions. If Ethanol fetches a fairer price in tune with Global oxygenates more
success would embrace Sugarcane cultivating farming community. Alcohol is fundamental building block
for green Chemicals and it should be encouraged to bring in more investment and scale of operations.
(ACS)
Sugar Industry contributes almost 35 million USD as tax to both center and state Govt’s. With a total
turnover of around 3,00 million USD, the Indian Sugar Industry is amongst the largest tax payers,
contributing around 25.02 million USD per-annum to the Central and State exchequers. Further, about
4.5 million sugarcane farmers,their dependents and a large number of agriculture labor and about 0.5
million skilled and semi-skilled workers mostly from rural areas,earn their livelihood form the sugar
industry. It is also employment generated industry through its various ancillary activities, various
agencies of distributive trade and through subsidiary industries such as confectionery and alcohol. By way
of sugarcane price about 167.16 million USD are disbursed amongst cane farmers every year. (NFCSF)
In changed scenario where world is looking at sugar as a body burden with India turning in to a diabetic
capital sugar is no more considered an essential commodity and PDS has been limited only to marginal
communities. So the readily available domestic market through PDS has also been dwindling and some
day may be totally erased. So Sugar is more dependent on distillation stream for revenue generation.
Policy support and Opening up market should be like all decontrolled sectors which will help Industry to
consolidate and operate more efficiently and also enable financial institutions look forward with more
positive outlook at this sector. Cogeneration, Ethanol blending sale mechanisms which are under purview
of state should also have a uniform policy across country without any distortions. There should be free
trade among states or among neighboring Countries and also a more open, forward looking policy
towards international markets.

12. Achieving sustainability in agriculture requires taking into account many different factors:global climate,
pollution, better use of industrial water,options regarding the use of fertilizers, pesticides, and herbicides,
and also economic sustainability in terms of costs, competitiveness, and the number and quality of jobs
created. (OECD)
With declining and oscillating sugar prices in Trade which is almost Inland, the energy value of alcohol
and Blending was realised by NDA Govt and implemented in 2004.From then on until now the projected
volumes of blending had never been realised due to failure of Implementation by Oil corporate and non
delivery by distilleries committed volumes. There has been no penalisation on either party which turned
to be a deterrent on forging ahead the EBP.
Now with GOI mandating 10% EBP severalmills have been enhancing their capacities and utilizing full
capacities to maximize their production. In India not all factories have Distillation due to Capex
involvement and Environmental issues as unable to fulfill requirements of pollution control board on safe
discharge of waste streams and utilization. India has about 160 distilleries mostly situated in Maharashtra,
Uttar Pradesh,Andhra Pradesh,Karnataka,Tamil Nadu, Gujarat and Madhya Pradesh.
The potable distillery producing Indian Made Foreign Liquor and Country Liquor has a steady but limited
demand with a growth rate of about 7-10 per cent per annum. The industrial alcohol industry on the other
hand, is showing a declining trend because of high price of Molasses which is invariantly used as
substrate for production of alcohol. The alcohol produced is now being utilized in the ratio of
approximately 52 per cent for potable and the balance 48 percent for industrial use. Apart from its use for
beverage,medicinal, pharmaceutical and flavorings, alcohol constitutes the feedstock for large number of
organic chemicals, which are used in manufacturing a wide variety of intermediates, drugs, rubber,
pesticides, solvents etc. (Mall, 1995).
with the advent of ethanol blending with petrol, the requirement of ethanol has increased manifold in the
country to the extent that in case 5 % blending, now with 10% blending made mandatory, molasses
available in the country shall not prove to be adequate for meeting the total requirement of ethanol
including its use for potable liquors and other industrial uses.
With limitation on volume of molasses available and its cost and with GOI allowing broken grain several
distillers have embraced multi feed distillation which also brings down the effluent and coloration issue.
With demand from State Beverages to market and sale IMFL (Indian Manufactured foreign Liquor) and
readily available domestic market most distillers prefer making sale to state beverages. With price and
Volume cap in EBP and total control by Oil corporate Industry has for past severalyears failed to deliver
committed volumes as price variance for ethanol and market driven alcohol has always been tilting in
favor of market opportunity. Most buyers in market also make advance payments and block capacities.
The Supreme Court intervention in Delhi pollution levels has helped general public understand menace of
Hydrocarbon usage and polluting fuels. Severalglobal studies have proven that particulate emissions
effect health and even is bringing down lifespan of effected populace which is a deterrent on productivity
and forcing a huge spend on healthcare and other social issues.

13. To overcome pollution issues in distillation, entities not possessing zero discharge are moving towards
Incineration which is energy incentive. Some are using biological additives to bring down pollutants. But
with Second generation distillation this issue of pollution is minimized but dissolving Lignin using acid is
moving industry towards Green chemistry.
GOI has not given any incentives to first generation distillation for EBP but present policy has been
looking at second generation from agricultural residues and some Oil corporate initiated large plants
which are at nascent stage. It may take few more years for their setting up and production to start and
commercially become feasible. The vision is that the scale and feedstock availability will enable bringing
down cost of ethanol and enable larger volumes be available for all industry.
Sugar Breeding Institute has also made available new varieties with more lignin for second generation
success. The Concept of whole cane for Ethanol production has not got the fillip from policy and very
recently enabled Ethanol production directly from Cane juice. If ethanol blending happens at pump and
marketing Ethanol blended petrol also takes place at producer point the logistic cost can be reduced and
benefit could be passed on to consumer.
With green chemistry and environmental friendly chemical usage rising with consumer awareness
demand for green alcohol from Industry also has been growing rapidly. So availability volume and price
is pushing various users to view each other as competitor and clash. The trade of alcohol could have
enhanced manifold if industry groups agreed upon common sharing infrastructure both for Inland and
Export markets. But this is essential and may see policy supporting such initiative.
Beyond Roadways, Air transport also has to introduce aviation biofuels and there would be greater
demand for Ethanol. Indians are flying more than ever before with more airports and flying hour’s
aviation pollutants are on the rise and there is serious need to start building infrastructure which would be
accommodative to ethanol in aviation fuels.
Bringing down cost of production involves severalkey players like technology suppliers of machinery,
Fermentation, Agronomy, Breeding, Harvesting and logistics. For comprehensively delivering we need
scale of operations this is where India has been failing all its mills, distilleries are midsize so economize
cost and create economies of scale they need to rein a Brazilian model in Ethanol. India failed in M&A
activity in this sector it has to be more aggressive and for that policy support to enthuse investment and
bring in scale should happen. Oil Corporate can never replace private industry and even Brazil Petrobras
failed in doing so. Rotterdam port is the best example for Green infrastructure built for International
Trade. India should have one of its own such infrastructures built on west coast and one on East coast.
Biofuels facilities, diesel and ethanol 2.0 million MT (production)
While only biodiesel and ethanol production is operational at the moment, Rotterdam is close to starting
production at four biopolymer and biochemical facilities. And if that wasn't enough renewable tech for
you, consider that the port is home to nearly 3 gigawatts of biomass co-firing (biomass and coal) and 150
megawatts of wind power generation capacity. Once all facets of the biobased value chain are running, it's

14. possible that chemicals produced at the world's former busiest port will be the greenest in world never
having been touched by a single fossil fuel feedstock or power source.(Port of Rotterdam)
To attract International investment scale is Critical which is missing in Indian biofuels industry and trade
should be free with no bar allowing both import, export based on supply demand. India can be the player
in Asia Pacific region but policy intervention both by state and centre is handicapping this great
opportunity. Though Sugar and Biofuels are separated,Biofuels being put under the Umbrella of
Petroleum ministry is not getting impetus to Biofuels. Probably the Biofuels industry should have an
independent minister who would be nodal to production, Implementing Blending, Policy direction,
enabling financial support, Infrastructure development both inland and for international trade at port
warehousing for liquid logistics and dedicated pipelines helping urban infrastructure build modern
transport sector bringing down pollution levels.
India with a Grand vision for Smart cities program has to improve upon its Indices on Clean Air and also
its pact on Kyoto Protocol and Paris agreement implementation, the Biofuels development is a part to
such grand vision to improve livable condition. The growing public awareness of clean air and Air
pollutants and Court interventions is making both industry and Policy to enforce and improve their foot
print.Cities are responsible for 70 per cent of global carbon emissions, while many particularly those in
Asia are highly vulnerable to the negative consequences of global temperature rise.
The debate of Food and Fuel is not much visible in India as thousands of tons of food grains are annually
washed away,rotten or infected in various warehouses across India, so policy has taken note and has
permitted using broken as well spoilt grain for ethanol production. SCM is a key component across
various value chains and is far more critical in Biofuels production and redistribution. In fact India could
enhance a lot in Sugarcane productivity as it has not yet achieved 100Mt/ha yields and enhanced yields
can make available more crop. Also when EBP has enabled ready market so most would opt for Cane
juice to Ethanol route bypassing all intermediate produce.
Biofuels Industry clusters which are primarily located in rural areas are largest employment creators in all
three sectors and for low skilled and unemployed youth. These clusters can employ, engage diverse
sectors changing the dynamics of economics, health and survival. For India which has both large arable
area and huge population this Industry can be a game changer. First generation distillation can never be
written off in Indian perspective, it will and has to co exist with second generation and its imperative that
second and third generation distillation programs globally have not seen economic success and several
had closed or re looking at Green chemistry and other value streams for survival and existence. Policy
support and Incentive has to be more proactive and Inclusive and alike Cooperative movement of
Maharashtra future players in ethanol will have a say in dynamics of policy and public life in India, this is
a Social reality.
With ever menacing global plastic usage, Bioplastics has a lot of potential. Ethylene is the feedstock for
this industry growth. Bio-ETBE is extensively used in the EU in conventional vehicles and fuel
distribution systems. This requires minimal investment in distribution system infrastructure. Bio-ETBE
currently accounts for the majority of bioethanol destined for the EU gasoline market.

15. Production and Consumption of Petroleum Products
Year Production of
Petro-Products
(MMT)
% Growth in
Production of
Petro-Products
Consumption of
Petro-Products
(MMT)
% Growth in
Consumption of
Petro-Products
2009-10 184.610 18.99 137.808 3.15
2010-11 194.821 5.53 141.040 2.35
2011-12 203.202 4.30 148.132 5.03
2012-13 217.236 7.15 157.057 6.02
2013-14 220.756 1.39 158.407 0.86
2014-15 221.136 0.17 165.520 4.49
2015-16 231.924 4.88 184.674 11.57
Imports & Exports of Petroleum Products: During 2015-16 imports of petroleum products were at 28.302
MMT valued at `65,803 crores which shows an increase of 32.87% in quantity terms and 11.84%
decrease in value terms against 21.301 MMT imports valued at `74,644 crores during 2014-15. During the
year 2015-16 exports of petroleum products were 60.536 MMT valued at `1,76,773 crores which shows a
decrease of 5.31% in quantity terms and 38.74% decrease in value terms against the exports of 63.932
MMT valued at `2,88,580 crores during 2014-15.
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Beginning
stocks
453 100 113 3158 58 58 74 59 94 65
Production 1073 1522 1681 2154 2057 2002 2292 2061 1651 1894
Imports 278 144 61 5 108 194 203 400 500 600
Exports 14 53 119 177 233 180 165 136 100 120
consumptio
n
1690 1600 1705 1955 1932 2000 2345 2290 2080 2420
Fuel 100 50 365 305 382 350 685 1110 700 850

16. Ethanol Used as Fuel and Other Industrial Chemicals (Million Liters)
The Annual USDA Gain reports on Biofuels has projected as above and its apparent that though
Projections and aspirations are quite high from Policy without more incnetiviztaion and accountability for
implementation on the part of Oil corporate there is little that India could add to bringing in more volumes
to EBP and quantum jump is a far away dream. Both Centre and State should comprehensively support
Industry to generate more employment as it is the need for economy for the robust growth and PM’s
Vision of doubling farming incomes.
Salient developments in Indian Ethanol blending program:
 In 2016, India achieved its highest ethanol market penetration at 3.3 percent (national blending).
Contributing factors included a contracted ethanol supply at attractive prices, and relatively high
prices for gasoline. In December 2014, the GOI announced price controls for OMCs to procure
ethanol. The program fixed landed-ethanol prices at OMC depots from INR 48.50 to INR
49.50/liter. Additionally, on October 13, 2016, the CCEA revised ethanol prices for supply to
OMCs to carry out the EBP in the following manner:
 Administered prices of ethanol for the EBP will be INR 39/liter from December 1, 2016 to
November 30, 2017. Charges will be paid to the ethanol suppliers as per actual in case of the
excise duty and VAT/GST, and transportation charges as decided by OMCs. With the new 18
percent GST on ethanol, OMCs will now have to pay 3-4 percent more than prevailing prices. In
consumptio
n
Ending
stocks
100 113 31 58 58 74 59 94 65 19
Production Capacity
No of
Distillery
115 115 115 115 115 115 160 161 161 162
Capacity 1500 1500 1500 2000 2000 2000 2100 2210 2215 2300
Production
Utilization
0.72 1.01 1.12 1.08 1.03 1.00 1.09 0.93 0.75 0.82
Coproduces Production(1000MT)
Bagasse 85850
9
8769
0
10271
4
10830
9
10236
0
10564
2
10869
9
10453
5
8640
0
9750
0
Press mud 11401 1169
2
13695 14441 13648 14086 14493 13938 1152
0
1300
0
Feedstock Utilization for Fuel(1000MT)
Molasses 417 208 1521 1271 1592 1458 2854 4625 2917 3542
Market Penetration(Litres)
Fuel
Ethanol
100 50 365 305 382 350 685 1110 700 850
Gasoline 17606 1956
3
20716 21842 23749 25848 29651 33265 3583
8
3861
0
Blend Rate
(%)
0.6 0.3 1.8 1.4 1.6 1.4 2.3 3.3 2.0 2.2

17. many states,such as Punjab, Tamil Nadu, and Uttar Pradesh,where VAT is lower than the
proposed GST, ethanol supplies will turn costlier unless individual states decide to make tax
concessions or provide similar incentives to encourage ethanol blending). If the need arises to
increase or reduce the retail prices of gasoline by public sector OMCs,then such a change would
affect the cost of holding constant the purchase price of ethanol during the supply year. Ethanol
prices may be reviewed and revised by the GOI at any time depending upon the prevailing
economic situation and other relevant factors.
 India’s ethanol consumption will outgrow production for the fourth consecutive year due to an
uptick in fuel ethanol purchases and steady demand from the industrial and potable sectors. As a
result, consumption will grow from 2 billion liters in 2017 to 2.4 billion liters in 2018.
 Since the GOI mandates the use of ‘indigenous ethanol only’ for EBP,fuel ethanol supply will
rise to a modest 850 million liters, 20 percent over the current year’s estimate. The chemical and
industrial sector will have to rely more on imported ethanol (or import finished products) to
augment the expected supply deficit. The consumption basket (excluding fuel ethanol) will
include 1.6 billion liters for the industrial and potable alcohol sectors (which are exempted from
GST). Since the quantity of ethanol demanded at higher prices may be less, the industrial uses
and the potable sector will need to augment some of its supply from grain-based distilleries.
 Given its widening supply deficit resulting from strong demand growth, India will continue to be
a net importer of ethanol. The small trade deficit that emerged in 2015 is expected to grow rapidly
through 2018, given the forecast of tight production this year and next. Assuming normal market
conditions, ethanol imports are forecast to rise from 400 million liters in 2016 to 600 million
liters through 2018.
 Currently biofuels imports have no restrictions, but India imports ethanol (Hydrous) only to meet
shortfalls in demand. Lowering import duties on ethanol will make imports attractive and
economically viable, especially when crude oil prices strengthen. Demand is mostly for
consumption across the potable liquor and chemical industries and not for fuel. In 2016, India
imported 400 million liters of ethanol (non-beverage), the largest quantity since 2009 (278
million liters) and almost double that of 2015. Almost 80 percent of imported ethanol (worth
$173 million) was sourced from the United States and was mostly classified as Undenatured, Fuel
Use. The remaining 18 percent was from Brazil and 2 percent from Bhutan and Pakistan. In
general imported ethanol is competitively priced against local supplies. Usually, when local
ethanol prices are strong, industry users prefer to buy imported ethanol and sugar distilleries
benefit from selling it to OMCs.
 Assuming normal market conditions, India is likely to export 120 million liters of ethanol (mostly
Undenatured) in 2018, 100 million liters in 2017, and already sold 136 million liters (worth $95
million) in 2016. Since peak export sales in 2013 (233 million liters), India exports of ethanol
have declined by an average of 15 percent per year on tighter supply and strong local demand.
Ghana, Nigeria, Cameroon, Nepal, Sierra Leone, Tanzania, Jordan, Uganda, Rwanda,and
Jamaica were the main export destinations for Indian ethanol in the last 5 years,but market share
was lost to competition from United States,South Africa, United Kingdom, and Canada.
 Biofuels exports are only permitted after domestic requirements are met and the final decision is
taken by the NBCC. The GOI provides no financial assistance for exports of biofuels. However,
current trade regulations allow duty-free import of feed stocks for re export by certified export
oriented processors. Currently, the basic Customs duty on denatured ethanol is 2.5 percent. It

18. was reduced last fiscal year from five to 2.5 percent for manufacture of excisable goods, subject
to actual user conditions (Customs Notification No.12/2016). Before July 11, 2014, the duty was
7.5 percent (Customs Notification No.12/2014).
 Steady rise in consumption demand will deplete stocks from an estimated 94 million liters in
2016 to 65 million liters in 2017. Stocks will decline further to 20 million liters in 2018 given
tighter supplies; local ethanol prices likely will spike as a result.
 The current distillation capacities can produce and supply a maximum of 2.5million litres,
whereas oil marketing companies need 3.3 million litres for 10 per cent blending. An additional
capacity of 0.35million litres will be available in the next 12 months. “Having allowed using B
molasses to produce ethanol may give 6.5 billion litres of ethanol. Expanded capacities will take
at least another three years to gear up.
 Crossing the 10 per cent blending levels may need new standards and approvals. Besides, many
old vehicles require modification of engines and other parts to make it happen. The change in the
policy, however, will pose a number of challenges to the sugar mills as they have stressed balance
sheets and may have to clean up their accounts to avail of loans for setting up new ethanol plants.
 Sugar mills, which are facing challenges on export front on account of rock bottom global prices,
may be able to dispose of some of their existing stocks by converting them into ethanol. About
2.5,00,000 tonnes of sugar could produce enough ethanol for 5 per cent blending.
 India's sugar production in the coming 2018-19 season,which starts Sept month, is likely to be
0.7-0.8 million tonnes less than its estimated total, because of government's recent decision to
incentivise the production of ethanol from intermediary molasses and sugarcane juice. Though
the drop compared to the estimated 35.5 million tonnes of sugar production looks miniscule,
industry players say this is just the beginning and more quantities would get diverted over the
years as mills add new production capacities.
 The union cabinet increased the procurement price of ethanol produced from B-heavy molasses
(also called as intermediary molasses) to Rs 59 a litre from the current Rs 47.13 a litre and that
produced from C-heavy molasses to Rs 53 a litre from the existing Rs 43.46 a litre, an increase of
25 per cent. Such an increase might lead to more sugar production as more mills start producing
ethanol.
 In the 2018-19 ethanol production seasons,which start from December 2018, the industry
estimates that around 2.0-2.25 billion litres of ethanol would be supplied by the sugar factories to
the Oil Marketing Companies (OMCs) as against the total requirement of 3.3-3.4 billion litres. Of
this, around 400-500 million litres would be produced from B-heavy molasses while the rest
would come from the conventional C-heavy molasses.
 Since the prices for ethanol produced from B-heavy molasses and C-heavy molasses are different
for the first time, OMCs have asked sugar companies to give two quotations. Production of 400-
500 million litres of ethanol from B-heavy molasses would lead to around 0.7-0.8 million tonnes
of less sugar production in 2018-19 as the former contains some amount of sugar in it.
 When newer and fresh capacities get added on to the sugar mills in next 3-4 years,India's sugar
industry would be able to meet the entire demand of OMCs for 10 per cent blending which is 3.3-
3.4 million litres of ethanol. Of this, 1 billion litres of new capacities and around 350 million
litres of distillation capacity is expected to be added by end of 2018-19 sugar season. In 2017-18,
as against the requirement of 3.13 billion litres of ethanol, the industry supplied around 1.64

19. billion litres, all of which was produced from C-heavy molasses as there wasn't a separate policy
for ethanol produced from B-heavy molasses.
The Lacunae for Indian Biofuels program has always been its feedstock availability and cost,for ethanol
Sweet sorghum, Tapioca, Sweet beet etc have been tried but all failed at bench scale itself. Now Energy
cane is being is seen as option but again will it scale alike Sugarcane is a difficult question to answer as it
has win acceptance of farmers. Therefore in near future there is one and only feedstock accepted and
grown by Indian farmer which is sugarcane which has survived time and so Policy need to clearly
understand to build this Industry and policy decisions around this crop rather envisaging and hoping
people would embrace other crops and residues in large volumes and supply them to industry which is
quite farfetched imagination. The GOI offers subsidized loans through SDF to mills for establishing
ethanol production plants.
However,given the technological challenges, commercial production and economic viability remain to be
demonstrated. The suitability of second generation biofuels for India’s respective needs must be evaluated
against other bioenergy options to achieve the best possible social and economic benefits.
Technology can always be bought and tailored to your industry specific needs but can we work an entire
SCM built for generations it’s quite difficult and is the single lone reason why India has been failing on
Biofuels front.
Countries should cooperate to share knowledge on sustainable bioenergy options and effective policy
approaches to putting these options in place. They should also work together to build consensus on the
environmental, social and economic sustainability of bioenergy and the contribution they can make to
SDG’s such as sustainable energy for all, adequate nutrition for all, and combating climate change. Based
on such consensus, they should encourage financing of projects and programs in developed and
developing countries to jointly boost food yields and sustainable low carbon fuel production.
(Key European action supporting 2030 Agenda)
Work around what you have rather pursuing at what you intend to, vision could be built around after
establishing a successfulbase,which is yet to be done even after almost a decade and half of existence,
why reinvent a wheel when you already have one ready to spin and move ahead. India is and will remain
one among top Ethanol producers to overcome its Hydrocarbon Imports which are impacting its growth
and GDP relentlessly year after year.
References:
petroleum.nic.in/sites/default/files/pngstat_1.pdf
https://gain.fas.usda.gov/.../Biofuels%20Annual_New%20Delhi_India_6-27-2017.pdf