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Production of Ethanol

The production of ethanol in the country is insufficient to meet the requirement of different sectors.  In India, almost the entire Ethanol is produced from sugarcane molasses.  Hence, ethanol production in India is heavily dependent on production of sugar and sugarcane, which fluctuates due to their cyclic nature.  Government, under the Sugar Development Fund Rules, 1983, provide soft loans, up to 40% of the project cost, to the sugar mills for setting up ethanol projects to improve their viability via value addition to their by-product namely molasses. 

The quantity of the production of Ethanol during the last three years, as available is as under:

Year Production (in million litres)
2008-09 2264.86
2009-10 1830.40
2010-11 2046.47 (estimated)

Production of Ethanol for the current year is not available as the season is in progress, reports PIB.

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Categories: Alcoholic Beverages, Sugar
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