India: Biofuels Annual

  |   Attaché Report (GAIN)   |   IN2024-0024
FAS New Delhi expects India’s ethanol production for 2024 to reach 6.35 billion liters (BL), less than a 1 percent change down from last year due to projected decline in sugarcane production and depleting rice grain storage. Total ethanol consumption is expected to rise to 7.2 BL out of which ethanol for fuel consumption is estimated at 6.2 BL. This estimate accounts for India’s restrictions on sugar feedstocks and broken rice for fuel ethanol to avoid inflationary food prices, amidst a low sugar production year. India is expected to have a feedstock shortage and the ethanol blending rate for 2024 is expected to drop to 11.5 percent. In April 2023, India initially reached its current ethanol blending target of E-12 but will be hard pressed to reach E-20 by 2025. India also continues to aim for a 5 percent biodiesel blend for on-road use by 2030. Post projects Indian biodiesel production at 226 million liters due to government initiatives, under a 1 percent blend rate.

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