Ethanol blending on track but grain-based distillation could be a challenge

Less than 15% of total ethanol supply in the market is currently from grain-based distilleries

India’s ambitious target of blending 20 per cent of petrol with ethanol will be on track if the promised capacities come on stream and prices remain lucrative in the long run.

However, putting up grain-based distilleries could be a challenge due to differential pricing as compared to sugarcane-based ethanol, high power and steam prices, problems in getting regular supply of raw material--primarily corn in this case--and sustainability of conversion margins. 

Still, many are hopeful that with Centre keen to push the programme, the rough edges will be smoothened.

But the existing situation possibly explains why less than 15 per cent