The Indian Sugar & Bio-energy Manufacturers Association (ISMA) has defended India's ethanol blending programme, saying it has delivered "unequivocally positive" outcomes, even as recent commentary flagged concerns over water stress linked to ethanol production. The response comes amid concerns about the potential water impact of ethanol production, particularly from water-intensive crops like rice, and stressed the need for sustainable resource management.

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Programme's Origins and Market Impact

Responding to the concerns, ISMA said, "While concerns have been raised in recent commentary, it is important to recognise that the Ethanol Blending Programme was introduced at a time when the sugar sector was facing a severe glut in 2018, with prices falling to decade-low levels." The industry body added that the policy "provided a vital and timely avenue to channel surplus sugar into ethanol, thereby restoring market balance."

Economic and Environmental Benefits

Highlighting the impact of the programme, ISMA said, "Its impact has been unequivocally positive--improving mill liquidity, facilitating the clearance of cane arrears, and enabling sustained increases in the Fair and Remunerative Price (FRP), directly benefiting farmers."

The industry body further noted that "the programme has enabled payments of over Rs 1.7 lakh crore to farmers and contributed to a reduction of approximately 870 lakh tonnes of CO₂ emissions."

ISMA Director General Deepak Ballani said the programme has helped transform the sugar sector, stating, "The programme has, therefore, been instrumental in transforming a structural surplus challenge into a stable and value-generating ecosystem for the sugar sector and rural economy."

Commitment to Sustainability

The association also emphasised that the industry remains aligned with the government's sustainability goals, adding that it is focused on "diversifying feedstocks, improving water-use efficiency, and ensuring a balanced approach to energy security and environmental stewardship." (ANI)