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Informist, Saturday, Jul 27, 2024

 

--Sugar co-op body head: To release 10-yr plan for sugar sector Aug 10 

--CONTEXT: Sugar co-op body head Patil speaking at sugar conference

--Sugar co-op body head: Made 10-year roadmap for sugar industry 

---G20 Sherpa Kant: Long-term policy predictability key for sugar sector

--CONTEXT: India's G20 Sherpa Kant speaking at sugar conference

--G20 Sherpa Kant: Long-term consistency in policy key for sugar sector

--G20 Sherpa Kant: Ethanol from sugarcane important to energy security 

--Renuka Sugars: No sugar output forecast as estimates can go wrong 

--Renuka Sugars: No '24-25 sugar output view to avoid policy disruption 

--CONTEXT: Renuka Sugars Executive Chairman Chaturvedi at sugar event

--Renuka Sugars ED: Need GST incentives on flexible fuel vehicles  

--CONTEXT: Renuka Sugars ED Gupta speaking sugar at conference 

 

MUMBAI - The National Federation of Cooperative Sugar Factories has sketched out a 10-year roadmap suggesting stable policies for the industry, Harshvardhan Patil, president of the federation said. The plan for the next decade is set to be released on Aug 10, he added. 

 

"If the policies are changing by season to season, this industry is going to collapse," Patil said at the All India Sugar Trade Association's Sugar and Bioenergy Conclave here today.  

 

The ongoing sugar season ending in September witnessed many policy breaks amid concerns over lower sugar production in an election year. To ensure sufficient sugar availability in the country, the government had curbed sugar exports, capped sugar diversion to ethanol production, and imposed a 50% export duty on molasses.

 

Though industry officials said that 2024-25 sugar output is likely to be better due to good rains, they refrained from forecasting output figures. "I would refrain from putting a number on the cane crop as we have suffered massively in the last year," Atul Chaturvedi, executive chairman, Renuka Sugars, said. 

 

India's G20 Sherpa Amitabh Kant reiterated the industry's call for stable policies. "...If there is no long term predictability and consistency of policies, it will be very difficult for the industry. Secondly, that is what the prime minister has always said, that our job is to provide predictable and consistent policy, he said. 

 

The sugar sector contributes almost 1.1% to India's GDP and the industry has been vital for over 50 mln farmers and 1 mln sugar mill workers, Kant said. Further, the industry is a "driver of circular economy" and holds huge potential in the bioenergy landscape, he added. "I think it is also important that we highlight the sugarcane industry's importance for energy security," he said. 

 

On biofuels and green mobility, Renuka Sugars Executive Director Ravi Gupta stressed the need to incentivise flex-fuel vehicles at par with electric vehicles. The sugar industry has urged the government to reduce goods and services tax on hybrid and flex-fuel vehicles to 5% from 28%. 

 

While hybrid vehicles run on regular petrol engines and batteries, flex-fuel is powered by gasoline or ethanol blends of up to 83%. Ethanol, which is made out of sugarcane by-products, is used as a biofuel in flex-fuel vehicles to promote green mobility and reduce the crude oil import bill. 

 

The industry has also urged a hike in ethanol prices made from sugarcane by-products such as sugarcane juice, B-heavy molasses, and C-heavy molasses. Oil companies buy ethanol to blend with petrol to promote green mobility and achieve blending targets. To reduce dependence on crude oil, the government has set a target of achieving 15% blending of ethanol with petrol in 2023-24, 18% in the subsequent year, and 20% in 2025-26. To achieve the 15% blending aim, India needs about 8.25 bln ltr of ethanol.

 

However, experts believe India is likely to miss the 15% blending target this year. Oil marketing companies have procured 4.01 bln ltr of ethanol and achieved a cumulative blending of 13.0% in the first seven months of the ethanol supply year (Nov-Oct), as of Jul 1, according to a monthly report by the Petroleum Planning & Analysis Cell.  End

 

Reported by Afra Abubacker

Edited by Vandana Hingorani

 

 

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