Uttar Pradesh, India’s top sugarcane, sugar and ethanol producing state, is a critical cog in the country’s green energy roadmap.
Ethanol, which is produced from agricultural produce notably sugarcane and food grains, is mixed with fuel to pare the mammoth oil import bill and cut vehicular emissions.
According to government data, UP produced more than 1.50 BL of ethanol in 2023–24 from 102 active distilleries.
Ethanol is supplied to the oil marketing companies (OMCs) for blending in fuel.
The central government is targetting a blending ratio of 20 percent in near future.
UP chief minister Yogi Adityanath has directed officials to promote ethanol blending in fuel for higher rural income.
In 2023-24, UP topped the ethanol chart with 1.50 billion litres (BL) of production.
Meanwhile, ethanol projects worth Rs 6,772 crore are in the pipeline in UP, which entail ramping up fresh capacity of 1.06 BL.
In UP, about 5 million rural households are engaged in sugarcane cultivation with the annual cane payments by 122 sugar mills alone accounting for over Rs 34,000 crore.
The UP sugarcane economy is estimated at more than Rs 50,000 crore across its value chain of sugar, jaggery, ethanol, chemicals etc.
Recently, UP Sugar Mills Association (UPSMA) and Greentech hosted an international conference on ‘Business Models for Mitigating Challenges before Sugar Industry’ in Lucknow.
Delegates from India, Thailand, Nepal, Vietnam and Sri Lanka brainstormed on issues facing the global sugar sector, UPSMA secretary general Deepak Guptara said.
In 2024–25, nearly 84 percent of the total cane dues of Rs 34,466 crore in UP have so far been paid by mills.
The sugarcane acreage increased from roughly 2.05 million hectares (MH) in 2016-17 to 2.95 MH in 2024-25, while the productivity rose from 72.38 tonnes to 84.10 tonnes per hectare during the corresponding period.
Today, 122 sugar mills; 236 khandsari units; 8,707 traditional kolhus; 65 co-generation plants; and 44 distilleries are operational across 45 districts of UP.