Uttar Pradesh to emerge as largest ethanol producer

Uttar Pradesh is poised to become the nation's largest producer of ethanol, With around 100 operating distilleries in the current fiscal year (2023–24). Sanjay Bhoosreddy, a second chief secretary for excise and sugarcane, claimed that up to 85 distilleries are already operating in UP. Within the next several months, 15 additional distilleries are planned to open.

The 100 distilleries will be both dual mode (based on cane and grain) and sugarcane-based. The state administration has also set a goal to reach 140 distilleries in the state over the course of the following three years. According to Bhoosreddy, the state's investments collected during the global investor summit held earlier this year will be the main driver of the increase.

The state administration simultaneously sought to encourage grain-based distilleries in light of the substantial paddy and wheat inventories. According to records, UP produced the most ethanol in the nation 134 crore liters in 2022–2023. In 2023–2024, this is projected to increase to 160 crore litres.

In reality, the state administration has been pushing for the construction of new gasoline storage facilities in two areas: the Meerut-Moradabad belt and the stretch between Gorakhpur-Basti-Azamgarh. It is suggested that the projects be carried out in collaboration with the petroleum and railway ministries.

The state administration is actively pursuing the proposal for the construction of the two institutions. In actuality, Uttar Pradesh was guaranteeing a mix of about 12% ethanol. According to industry sources, Oil Marketing Companies (OMCs) like HPCL were mixing 11.63%. Records indicate that contracts for 520 crore litres were signed between December 2022 and October 23. The OMC has hauled almost 240 crore litres of this up till May 2023.