Ethanol firms are struggling to get feedstocks such broken rice and maize. The government is considering solutions. Due to rice shortages, Food Secretary Sanjeev Chopra says distilleries are struggling. They say corn and broken rice are expensive.
“We’re considering this. We know. “We will make a good decision soon,” he told PTI. The state-run Food Corporation of India stopped selling rice to ethanol manufacturers last month.
Biomass produces ethanol. Blended with petrol. The government wants to boost the 10% ethanol in fuel by 2025. Ethanol is combined with gasoline to increase its octane number. Ethanol has little water.
The article stated ISMA wants ethanol prices raised. The Food Secretary said a committee is discussing this. “Will the government raise ethanol prices in December-November?” The government decides. “No decision yet,” he added.
Discussing development BCL Industries MD Rajinder Mittal said a price increase in ethanol from maize and damaged food will benefit grain-based ethanol companies, who traditionally relied exclusively on leftover rice. FCI excess rice produced 150 crore liters of the 600 crore needed.
As excess rice policy is still expected, industry participants will have discretion to use three raw materials, mostly maize and damaged food grains. “This is good for the industry as players who have a deeper understanding of sourcing raw material at cheaper rates and deep connects with farmers will benefit more going forward,” he added.
“Several big players have kept maize at reduced rates and were waiting for the policy. “They have capacity running and huge raw material procured at much lower prices,” he continued.
The Food Secretary expects ethanol blending with fuel to achieve 12 percent this year after reaching 11.7 percent. The administration is also considering the ethanol corn scarcity. Thus, the government promotes maize.
Ethanol manufacturing worldwide uses maize. India wasn’t having it. He stated that in three years, maize output will be increased to produce more ethanol.
Conclusion:-
Ethanol makers lack feedstocks such broken rice and maize, thus the government is seeking solutions. Food Secretary Sanjeev Chopra said high maize and broken rice prices are hurting distilleries. Due to its higher octane than gasoline, the government wants to quadruple ethanol mixing with petrol by 2025. ISMA wants ethanol prices raised, and a committee is considering it. Grain-based ethanol producers, who relied on excess rice, would profit from maize and damaged food ethanol price increases. For ethanol production, the government is boosting maize output during the next three years. The government is also addressing ethanol grain shortages.
