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Informist, Saturday, Aug 10, 2024

 

NEW DELHI - Co-operative sugar mills must endeavour to diversify their product basket to ethanol and other energy products, government officials said on the occasion of International Biofuel Day today. Along with diversification, they urged cooperative factories to digitise their operations and merchandise sugarcane cultivation. 

 

The cooperative sector contributes to 30% of sugar production, but only 10% in ethanol, Sangeet Singla, director (sugar), said at the National Federation of Co-operative Sugar Factories’ Sugar Conclave and National Efficiency Awards Ceremony today.  

 

Minister of Cooperation Amit Shah appreciated the best-performing cooperative sugar mills today at the conclave. Cooperative mills were evaluated on sugarcane development, technical efficiency, financial management, sugarcane crushing, sugar recovery, and exports. India has 260 cooperative sugar factories and nine state sugar federations. 

 

Highlighting India's leadership in the Global Biofuel Alliance, Shah said India will meet its 20% ethanol blending target on time. To reduce dependence on crude oil, the government has set a target of 20% blending of ethanol with petrol in 2025-26. India has so far achieved 13% blending as of Jul 1 in the ongoing ethanol supply year ending October. 

The government's push for ethanol has improved sugar mills' financial viability and has reduced their carbon footprint, Aswani Srivastava, joint secretary (sugar), said. However, for the seamless implementation of the ethanol policy, cooperative mills must digitise their operations and bring transparency to the sector, he added.

 

"...all sugar mills should have an ERP (Enterprise Resource Planning) software. With that, your system will have transparency and efficiency. Human error will be reduced," said Sangeet Singla, director (sugar). The software manages all details of making sugar from harvesting, cane procurement, pricing, transporting, billing, budgeting, and cane inventory management among others. 

 

Amid grim sugar production projections in an election year, the government, in December restricted sugar diversion for ethanol production at 1.7 mln tn to ensure sufficient sugar availability in the country. 

 

However, sugar output as of Apr 15 was 31.1 mln tn, down merely 0.5% on year. As a result, the government allowed additional sugar diversion for ethanol production, taking it to around 2.5 mln tn, from 1.7 mln tn earlier.

 

On ethanol policy for 2024-25 (Nov-Oct), Srivastava said, the government will soon announce sugar diversion and ethanol prices for the upcoming supply year. "The industry is demanding clarity regarding the policy on sugar diversion for ethanol...it will be soon decided," Srivastava said. 

 

About the minimum sale price of sugar, he said, "There is a demand for MSP (minimum sale price), discussions are going on, and as it progresses, it will be discussed with you all."

 

Along with ethanol, cooperative factories should invest in infrastructural development for compressed biogas, officials said. On carbon credits, the Bureau of Energy Efficiency is working on devising a special category for sugar mills and its bio-products, said Ashok Kumar, deputy director general of the bureau. 

 

Carbon credits are measurable, verifiable emission reductions from certified climate action projects, and carbon markets are trading systems in which carbon credits are sold and bought. The sugar industry can benefit from the upcoming carbon market in India, Kumar said. "The government of India is bringing a carbon market...But until it is made, you need to do housekeeping, you need to be ready," he added.  End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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