Is India being too hasty in introducing mandatory ethanol blending? The government is on the verge of announcing a policy of 10% blending with petrol from October 2008.
Those in favour point out that introducing ethanol to the fuel mix will cut India’s dependence on imported oil and contribute to energy security.
The move will keep the agricultural lobby happy as sugarcane farmers and sugar companies are suffering as a result of oversupply this year.
However, the experiences of other countries suggest that India needs to do some careful thinking. A big concern is whether there will be enough local ethanol supply. There are doubts on whether ethanol will turn out to be environmentally friendly as growing sugar cane, to produce ethanol, involves cultivation of vast tracts of land plus water, labour and fuel.
Some economists also question if India should look at importing ethanol rather than producing it locally.
For more on the world of ethanol and biofuels turn to Simon Robinson's The Big Biofeuls Blog.
Comments (2)
One of the confounding things about the alcohol industry here in India is that nobody seems to know how much of the stuff is available.
The answer varies depending on who you ask - the chemicals lobby typically under-estimates production and over-estimates its demand. The sugar looby does just the reverse.
I suspect the reality is somewhere down the middle.
Another important fact is that central mandates often have little impact - alcohol is a state subject and some of teh states have a mind of their own.
Posted by Ravi Raghavan | September 12, 2007 8:42 AM
Posted on September 12, 2007 08:42
Dear respected Sir, When crude is soaring, heaping Sugar buffer stock by Central Govt. will hardly tame the inflation at this juncture and this miniscule particular step & result is very well known by present Govt. also. When crude is soaring like mad, focus on alternative energy and ethanol-blendings should be the highest prioirity of this Govt. When across the world including COUNTRIES LIKE BRAZIL(Where Bajaj Hind is already having operative plant too)is paying highest attention in ethanol-blending at 20-30% level, India should see it & take immediate action rather taking Sweets(when there is no cause of festivity)... Sir, our earnest intention to forward this message immediately to Govt.., make focus of them onto this lest some abnormal situation occurs.We know, there is some limitations at refinery stage too on surplusing naptha, dealer's commission etc..,but all these difficulties acn be eliminated when there is clear INTENTION. Hence make this Intention an ACTION asap lest it's too late. Thanking you & your team very much,With Regards,Muktibrata Roy.Kolkata
Posted by Muktibrata Roy | June 6, 2008 8:02 PM
Posted on June 6, 2008 20:02