India's Biofuel Industry Seeks Massive Budget Boost Amid Challenging Times

The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has urged the government to allocate Rs 15,000-20,000 crore to advance biofuel initiatives. Despite high sugar production, the industry faces challenges in ethanol diversion and price pressures. ISMA calls for policy measures to stabilise the sector and support clean energy goals.

The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) is pressing for significant government funding to strengthen advanced biofuel projects, including second-generation ethanol and sustainable aviation fuel (SAF). Director General Deepak Ballani highlighted the sugar industry's current struggles in an exclusive interview with ANI.

ISMA is advocating for a budget of Rs 15,000-20,000 crore to bolster pilot projects and innovations in biofuels. The call comes as the industry, despite robust production, faces weak prices and limited ethanol diversion, crucial stabilizing mechanisms for sugar stock management and farmer payment assurance.

Challenged by an imbalance in sugar stocks and deteriorating ex-mill prices, ISMA also seeks revisions in ethanol and minimum support prices. Pushing for reduced GST on flex-fuel vehicles, the advocacy group aims to align with India's clean energy targets, while exporting strategies face hurdles due to global price disparities.

(With inputs from agencies.)