印度协会申请先进生物燃料预算支持

Core Viewpoint - The Indian Sugar and Bioenergy Manufacturers Association (ISMA) is seeking federal budget support of $1.66 billion to $2.2 billion to accelerate investments in advanced biofuels, including second-generation ethanol and sustainable aviation fuel (SAF) [1] Group 1: Budget Support and Investment Plans - The budget will primarily support pilot projects, new technology development, and equipment innovation for advanced biofuels, with approximately $1.1 billion allocated for second-generation ethanol projects and about $170 million for SAF capacity building [1] - The request for this budget comes as India is expected to have a bumper sugar production season, with an estimated sugar output of 34.3 million tons, significantly exceeding previous years [1] Group 2: Ethanol Production and Pricing Issues - The ethanol blending volume for the current season is projected to be around 2.9 billion liters, which is significantly lower than the industry expectation of 4.5 billion liters, leading to increased sugar inventory and downward price pressure [2] - Sugar factory prices have fallen below production costs in some regions, while sugarcane procurement costs have risen to 355 rupees per quintal, with the minimum support price for sugar remaining unchanged [2] - The ISMA has called for reforms in the ethanol pricing mechanism, noting that raw material costs account for 70%-75% of ethanol production costs, but pricing has not adjusted in line with rising sugarcane prices, squeezing distiller profit margins [2] Group 3: Capacity and Policy Recommendations - India has achieved its target of 20% ethanol blending in gasoline (E20) ahead of schedule, but this has led to an oversupply of ethanol, with total ethanol production capacity around 20 billion liters, while only about 11 billion liters are needed to meet E20 standards, resulting in significant idle capacity [2] - The association is urging the government to optimize consumption tax policies by lowering tax rates on flexible fuel vehicles, ethanol fuel, and ethanol production equipment to stimulate market demand and industry investment [2]