India’s fuel ethanol consumption expected to grow in 2022

By Erin Voegele | July 19, 2022

Ethanol is expected to account for 9.3 percent of India’s gasoline supply in 2022, up 15 percent when compared to 2021, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. The country has set a goal to move to a E20 blend by 2025.

According to the report, India is expected to have 252 ethanol refineries in place this year, up from 231 in 2021 and 220 in 2020. Total nameplate capacity is expected to reach 5.7 billion liters (1.51 billion gallons) this year, up from 4.2 billion liters in 2021 and 3.5 billion liters in 2020. Capacity use is expected to fall to 62 percent this year, down from 76 percent in 2021 and 85 percent in 2020.

A total of 3.512 billion liters of ethanol is expected to be produced in India this year, up from 3.257 billion liters last year and 2.981 billion liters in 2020. Ethanol imports are expected to be at 635 million liters in 2022, down from 648 million liters in 2021 and 669 million liters in 2020. India is expected to export only 30 million liters of ethanol this year, down from 87 million liters in 2021 and 133 million liters in 2020. Total ethanol consumption is expected to reach 4.46 billion liters this year, including 4 billion liters of fuel ethanol. India consumed approximately 3.675 billion liters of ethanol in 2021, including 2.955 billion liters of fuel ethanol, and 3.32 billion liters in 2020, including 1.73 billion liters of fuel ethanol. The ethanol blend rate for 2022 is expected to average 9.3 percent, up from 8.1 percent in 2021 and 5 percent in 2020.

The report estimates that 13.333 million metric tons of molasses will go to fuel ethanol production in India this year, compared to 10.944 million metric tons in 2021 and 6.407 million metric tons in 2020.

A full copy of the report can be downloaded from the USDA FAS GAIN website