Ethanol glut in India fuels search for new buyers
New Delhi: India's ethanol industry faces a major glut, with manufacturers scouting for new buyers and alternative markets to absorb near seven billion litres of unused surplus. Due to aggressive government fuel blending policies, ethanol production capacity has expanded rapidly, outpacing domestic demand. The country's installed capacity stands at roughly 20 billion litres, with an additional four billion litres set to be added this year.
However, the E20 fuel blending program only demands about 11 billion litres a year, while non-fuel sectors such as liquor, pharmaceuticals, and chemicals consume another 3-3.5 billion litres. This leaves nearly seven billion litres without a clear market.
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