The Indian government comes with efforts to boost ethanol production, the sugar industry pushes for higher ethanol prices and stable long-term policy on blending. This ethanol blending program is the new priority for filling the gap in green energy commitments and strengthening the financial backbone of sugar mills.
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Call for Higher Ethanol Prices
Chairman and Managing Director, Udagiri Sugar Dr. Rahul Kadam says that at this stage the Indian government must raise the procurement price of ethanol. "We need the government to review ethanol prices for various feedstock’s with the fair sugarcane price incorporated into it." This would increase the price and thus raise more ethanol production. This would result in the improvement of the financial position of sugar mills, such that they clear their dues faster.
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Current-day Ethanol Cost
At present, ethanol from sugarcane juice costs Rs. 65.61 per litre. For B-Heavy molasses, the cost is Rs. 60.73 per litre; and for C-Heavy, Rs. 56.28 per litre. Apart from these, he also emphasizes modification in transport tariffs. He believes in having a five-to-seven-year ethanol policy to promote sugar mills making sufficient ethanol to achieve the target of 20% blending of ethanol with petrol by 2025.
Ethanol Blending Progress in India attained a blending percentage of 15.8% ethanol in the petrol for August. Total blending during November 2023 and August 2024 stands at 13.6%. In the latest development, the government opened way for sugar mills and distilleries to produce Rectified Spirit and Extra Neutral Alcohol from sugarcane juice and B-Heavy molasses. The same applies to all kinds of molasses during the forthcoming Ethanol Supply Year of ESY 2024-25. They have lifted a previous ban, and now up to 23 lakh tonnes of rice from Food Corporation of India stock can be sold to ethanol distilleries, grain-based.
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Ethanol production capacity growth
As the Department of Food & Public Distribution (DFPD) said, "Today India stands with a capacity to produce ethanol to the extent of 1,623 crore litres by August 31, 2024, from a meager 518 crore litres in 2017-18." This has not only borne the plans for the government but also represents its commitment to making the sugar industry more sustainable and to promoting a cleaner environment.
Looking Ahead
While these changes promise progress within the sugar industry, many look to the government for some positive signs. More sustainable practices and better economic conditions for sugar producers form part of the essentials in discussion. The sugar industry is hopeful of close collaboration with the government to provide a prosperous future.
Simply, as the government moves to expand production of ethanol, the sugar industry seeks higher prices and more effective policies. Together, they look forward to a more secure and sustainable future for sugar mills and the environment as well.
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