ANNOUNCEMENTS
The increase in energy demand is accompanied by the need to adopt alternative sources. In India, the ethanol blending policy was directed to a reduction in emissions, foreign savings, and a boost to the agricultural and rural sector. The study aims to analyze the feasibility of blending ethanol with petroleum in India. A social cost benefit approach is used, with the analysis consisting of three themes through which the social costs and benefits are identified and accounted for. From the agricultural side, the cultivation of sugarcane is found to have a positive net social benefit. With the aim to reduce external dependence, domestic production of ethanol is promoted, with the analysis pointing to the fact that a major part of the cost of production is the cost of molasses. The cost of transportation of ethanol to the point of blending was also found to be an important factor. The study also found the reduction in the emissions brought about by the utilization of ethanol blended fuel. There exist barriers in the trade-offs between multiple uses of the feedstock, mobility of the biofuel, and some vehicle compatibility issues. There are measures, however, that can be adopted to tackle these barriers. Further, with the future targets, there is a need to ensure that the sourcing of the feedstock that is used in the manufacture of ethanol is diversified to meet the demands corresponding to the blending targets.
Key Words: Ethanol blending, social cost and benefit, molasses, demand, supply.
