India advances ethanol blending in gasoline
India may advance the target date for ethanol blending in gasoline by 2 years, as the country seeks to cut its oil import bill and reduce carbon dioxide pollution in cities.
"The central government hereby directs that the oil companies shall sell ethanol blended petrol with percentage of ethanol up to 20% as per the Bureau of Indian Standards specifications, in the whole of the states and union territories," the publication said.
The move from India towards higher production and use of ethanol is expected to cut the country's exportable surplus of sugar, potentially leading to higher international prices for the sweetener.
Most of the additional ethanol production in the country will come from sugar cane processing, so less cane will likely be used to make sugar.
Wednesday's publication comes after changes earlier this week by the government on rules for companies to set up standalone ethanol production units, aiming to facilitate those projects.
India has also been giving soft loans to sugar mills to increase ethanol production capacity by adding distillation infrastructure to existing plants.
Large volumes of E20 by 2023, however, will depend on how quick car manufacturers can adapt, since it will require new engine specifications.
(Reporting by Marcelo Teixeira; additional reporting by Rajendra Jadhav in New Delhi; )
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