In our borderless global village, many countries are trying to become self-sufficient/less dependent in energy production by exploring bio-technological ways. Brazil is one such country whose bio-fuel program escaped the clutches of political interests and took off into the world of economic reality.

The first country to launch its “Proalcool programme” by introducing fuel-alcohol Ethanol in transport segment about two decades ago, Brazil today is the largest producer of Ethanol in the world, producing 15 billion litres. According to recent statistics, about 40 per cent of the fuel demand in its transport sector is currently met by this fuel - alcohol.

Brazil’s experience is an alluring invitation for any country to step into this most prospective field of Bio-fuel. Ethanol market in many countries is monopolised and as such statistics on production, consumption and export are a closely guarded secret due to unknown political reasons. Still the available data published in International Molasses & Alcohol report indicates that the world is shifting towards Ethanol, slowly phasing out the use of Methyl Tertiary Butyl Ether (MTBE) and Tertiary Amyle Methyl Ether (TAME) as oxygenate. As the use of MTBE and TAME is proven harmful to the nature, USA has already planned to phase them out within a period of four years(by 2005).

The present demand for Ethanol in USA is 1.73 billion litres and could go up to 3 billion litres in two years. Canada, France and Spain are increasing their production, while Japan and South Korea import huge quantities from Thailand and Saudi Arabia respectively.

India, though well aware of the potential of Ethanol in reducing the huge Petroleum imports bill, has not yet made any breakthrough in this field despite being the second largest producer of Ethanol in Asia. The total installed capacity in India is recorded at 3.2 billion litres while actual production is only 1.3 billion litres.

Sugarcane/molasses, one of the very basic agricultural commodities required for the production of Ethanol is readily available in India. The country produces about 300 million tonnes of sugarcane and discharges about 8.5 million tonnes of molasses from the sugar mills as by-product. Federation of  Indian Chamber of Commerce and Industries assessed in its report that “the country has the potential to save nearly 800 million litres of petrol annually by blending up to 10 per cent Ethanol in the gasoline used by the transport sector”.

There were many wake-up calls from FICCI and other industrial lobbies and even from the Supreme Court of India. But the implementation of the programme is still entangled with ceremonial delays waiting for political goodwill.
As the sugar industry is covered under the preview of Essential Commodities act 1955, the industry is regulated by licensing controls, pre and post-production controls, sales control price controls, export controls and shadowed by other numerous state legislations.

Can the economic interest of the country supersede political excesses?