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ISMA Defends Ethanol Blending Programme Amid Water Stress Concerns

ISMA has defended India's ethanol blending programme, calling its impact "unequivocally positive" amid concerns over water stress from ethanol production. The programme was introduced in 2018 to address a severe sugar glut and falling prices. It has improved mill liquidity, cleared cane arrears, and enabled payments of over Rs 1.7 lakh crore to farmers. The industry is now focused on diversifying feedstocks and improving water-use efficiency to align with sustainability goals.

Key Points: ISMA Defends Ethanol Programme as "Unequivocally Positive"

  • ISMA defends ethanol blending programme amid water stress concerns
  • Programme introduced in 2018 to address sugar glut
  • Over Rs 1.7 lakh crore paid to farmers, 870 lakh tonnes CO2 reduced
  • Industry focused on diversifying feedstocks and improving water-use efficiency
2 min read

ISMA defends ethanol blending programme, calls impact "unequivocally positive" amid water stress concerns

ISMA defends India's ethanol blending programme amid water stress concerns, citing benefits for farmers, mills, and emissions reduction.

"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. - ISMA"

New Delhi, May 2

The Indian Sugar & Bio-energy Manufacturers Association 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.

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."

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."

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

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Reader Comments

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Vikram M
While ethanol blending has helped farmers and reduced emissions, the water stress concerns are real. In my village in UP, the groundwater levels have dropped significantly due to sugarcane farming. ISMA's focus on diversifying feedstocks is welcome, but implementation is slow. We need more incentives for water-efficient crops like sorghum or sweet sorghum for ethanol production. Otherwise, we'll solve one problem (sugar glut) but create another (water crisis). Just saying... 🤔
R
Rohit P
The Rs 1.7 lakh crore paid to farmers is no joke! That's real money in our rural economy. My uncle in western UP got his cane arrears cleared because mills started diverting surplus to ethanol plants. But yes, we must address water use. ISMA saying 'unequivocally positive' is a bit too rosy - they need to acknowledge the trade-offs more honestly. Still, overall I support the programme with better water management practices. Jai Kisan! 🇮🇳🌱
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Ananya R
I'm from Karnataka, and I've seen the water crisis firsthand in the Cauvery belt. Ethanol production from sugarcane is water-intensive, but so is sugar production - we were already growing it! The real question is whether we're using water efficiently. ISMA should share more data on water-use improvements and feedstock diversification. The CO2 reduction of 870 lakh tonnes is impressive though! Maybe they can also promote drip irrigation and other efficient methods. 👍
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Aditya G
Respectfully, I disagree with critics who want to scrap the ethanol programme. It solved a genuine crisis - remember sugar prices hitting decade lows? But we need a more nuanced approach. Instead of only sugarcane, why not aggressively promote ethanol from maize, broken rice, and agricultural waste? Also, the government should link ethanol procurement prices to water availability. Let's not throw the baby out with the bathwater, but let's also not ignore the water elephant in the room. 🐘💧

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