The authorities is exploring choices to address the problem of the non-availability of feedstocks like damaged rice and maize that’s being confronted by ethanol producers. According to Food Secretary Sanjeev Chopra, the distilleries are dealing with a problem due to the non-availability of rice. They have advised me the costs of maize and damaged rice are excessive.
“This issue is actually under our consideration. We are aware of the problem. Very shortly, we will take a suitable decision,” a PTI report quoted him as saying. Notably, the state-run Food Corporation of India had final month stopped the availability of rice from its depots to ethanol makers.
Ethanol is an natural compound that’s produced from biomass. It is mixed with petrol. At current, 10 per cent ethanol is mixed into petrol, and the federal government is trying to double this by 2025. The purpose why ethanol is mixed with petrol is as a result of of its larger octane quantity than gasoline, which contributes to bettering the octane quantity of petrol. Ethanol has an insignificant quantity of water in it.
The report stated that trade physique ISMA is demanding a hike in ethanol costs. According to the Food Secretary, a committee is already deliberating this concern. “Whether the government will consider raising ethanol prices in the last month of this ethanol year (December-November). That is something that the government will take a call. No decision has been taken yet,” he stated.
Commenting on the event Rajinder Mittal, MD, BCL Industries, stated {that a} price hike in ethanol from maize and broken meals can be excellent news for grain-based ethanol gamers, as they have been beforehand dependent solely on surplus rice. Only 150 crore liters have been constituted of FCI surplus rice out of the 600 crore required.
“Going ahead, the industry players will have leeway to go into 3 sources of raw material, now majorly maize and damaged food grains as surplus rice policy is still awaited. This is a good step for the industry as players who have a deeper understanding of sourcing the raw material at cheaper rates and deep connects with farmers will benefit more going ahead,” he stated.
“Several leading players have stored maize at cheaper rates already and were waiting for the policy to come in. They will benefit from the rate increase as they have got capacity running and huge raw material procured at much lower prices,” he added.
According to the Food Secretary, ethanol mixing with petrol has reached 11.7 per cent thus far, and is hopeful of reaching the goal of 12 per cent this 12 months. He added that the federal government is trying on the scarcity of grains for ethanol manufacturing. As a end result, the federal government is now encouraging maize.
Maize is used as an enter for ethanol manufacturing globally. It was not occurring in India one way or the other. He added that the plan is to improve maize manufacturing in the subsequent three years in order that extra maize is out there for ethanol manufacturing.
