NSE:RENUKA management interview: Why India Is Boosting Ethanol: Insights from Shree Renuka Sugars Executive Chairman
Zee Business, 2026-03-24. Video: https://www.youtube.com/watch?v=H8qfxngO7fo
- Ethanol blending target: India has an existing capacity of 20 billion liters but utilizes only 10.5 billion liters, leaving sufficient potential to target 30% blending. Achieving 30% blending would require 15 to 15.5 billion liters, which can be equally supplied by the sugar and maize sectors at 7 to 7.5 billion liters each.
- Flex-fuel vehicle incentives: Automakers show resistance because incentives are heavily skewed toward electric vehicles, necessitating equal incentives for flex-fuel cars. Manufacturers present in India already possess this technology from markets like Brazil, removing the need for major technology imports.
- Feedstock pricing parity: Pricing for sugar-based ethanol must be matched with maize-based ethanol to prevent sugar mills from halting ethanol production. Currently, grain and damaged food crops account for 78% of ethanol supply, reducing the sugar sector's share to 27–28%.
- Crude import reduction: Raising blending targets to 30% would increase ethanol absorption by 50% over the current 10 billion liters. This would significantly reduce energy security risks for an economy that is 85% dependent on crude imports and help cushion consumers against high oil prices.