Uttar Pradesh will be a major beneficiary of the hike in ethanol blending to 20 per cent with petrol in the next two years. UP is already emerging as a leader in ethanol production and blending. Presently, UP has 75 distilleries with a production capacity of 249.49 crore litres per annum. The state has become the largest producer of ethanol in the country with 10 per cent blending, the highest among all the states.
“The state government is further establishing 17 new distillery units which are expected to be commissioned in the next two years,” Additional Chief Secretary, Excise and Sugar Industries, Sanjay R Bhoosreddy said.
UP has become the largest ethanol supplier of the country. The total number of distilleries in the state is 75 with a total production capacity of 249.49 crore litres per annum. The total number of ethanol producing distilleries is 55 with a production capacity of 166.17 crore litres per annum.
Establishment of 17 new distillery units is underway and expected to be commissioned in the next two years.
Ethanol production was 42.70 crore litres in the financial year 2016-17, with an installed capacity of 87.05 crore litres of 38 distilleries, which increased to 99.31 crore litres in the year 2020-21. The installed capacity also increased to 166.17 crore liters of 53 distilleries. Of which, 43.95 crore litres of ethanol is used in the state while 52.60 crore litres is sold outside the state.
At present, a target of 10 per cent ethanol blending has been set by the Government of India and it has to be completed during the current fiscal 2022-23. At present, the actual blending has been accomplished in the country to an average of about 8.1 per cent.
In Uttar Pradesh, the target of 10 per cent blending has already been achieved.
In view of surplus sugar diversion, 47 sugar mills diverted 7 lakh ton sugar by producing B-heavy molasses in the season 2020-21. In the present crushing season, 58 sugar mills by B-heavy and 10 sugar mills by direct cane juice or sugar syrup are expected to divert about 10-12 lakh ton of sugar in the coming crushing season.
An increase in ethanol production will contribute to the ethanol blending programme and reduce the problem of environmental pollution as well as saving foreign currency on petroleum fuel.
The Cane Development department of Uttar Pradesh is an important department directly linked with farmers and the sugar industry is the single largest industry of the state based on agriculture.
Sugarcane is mainly grown in 45 districts of the state and its area in the state is about 27.60 lakh hectares.