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Informist, Thursday, Dec. 19, 2024

 

--Food secy: Enough room for maize and sugar industry in ethanol programme 

--Food secy: ISMA must intensify remote sensing for accurate cane acreage

 

NEW DELHI – The government is diversifying feedstocks for ethanol production to ensure uninterrupted supply of ethanol, Food Secretary Sanjeev Chopra said. Oil companies buy ethanol to blend with petrol to promote green mobility and achieve blending targets.

 

"Whatever development is happening in maize-based ethanol is not at the cost of the sugar industry," Chopra said. "There is enough room for everybody to contribute to the ethanol blending programme," the secretary said at the Indian Sugar & Bio-energy Manufacturers Association's annual general meeting on Thursday. 

 

Oil marketing companies have given more ethanol supply orders for grain-based distillers than sugar-based units. Of the 8.37 billion litres of ethanol allocated to be supplied to oil marketing companies in 2024-25, 62.7% will be sourced from grains and 37.3% from sugarcane, according to tender results. 

 

The government has prioritised maize as a go-to feedstock for ethanol production, expecting a steep jump in maize production. "In the next two years, we are looking at about 450 lakh (45 million) tonnes of maize production, up from about 350-60 lakh (35-36 million) tonnes about a year or two back," Chopra said. "But right now, since the production has not gone up to that extent, obviously there are some pressures to see whether the availability is really there," he added. 

 

To ensure reliable sugar production estimates, Chopra asked ISMA to intensify remote sensing for accurate cane acreage. The association sees gross sugar production in 2024-25 (Oct-Sept) at 33.3 million tonnes.

 

According to industry experts, grain-based distillers are bound to default and invite penalties amid the limited availability of maize. Additionally, maize is also a sought-after feedstock by the poultry industry. Sugar is a reliable ethanol supplier, fulfilling more than 90% of the supply orders, ISMA President Prabhakar Rao said. 

 

The government is promoting ethanol production from varied feedstocks--rice, corn, sorghum, bamboo, and agricultural residues to achieve its ambitious ethanol blending targets. To reduce dependence on crude oil, the government has set a target of achieving 20% blending by 2025-26. 

 

To ensure ethanol production from all available feedstock, the government allowed ethanol distilleries to participate in Food Corp of India's weekly rice auctions. In August, the government lifted a 13-month ban on the sale of rice to grain-based ethanol distilleries. It allowed these entities to purchase up to 2.3 mln tn of the foodgrain through e-auction till October. 

 

The easing of rice supply comes amid India's push for ethanol in the backdrop of the Global Biofuel Alliance, spearheaded by the country. Though the government has allowed distillers to buy FCI rice, the offtake has been poor as ethanol makers find the price too high. The government might consider reducing the selling price of rice to attract distillers, Chopra told reporters on the sidelines of the meeting. The FCI's rate for rice is around INR 31.5 per kg.  End

 

Reported by Afra Abubacker

Edited by Avishek Dutta

 

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