Govt to tackle grain supply issues for ethanol making; refutes ISMA sugar output advanced estimate
The distilleries are facing an issue due to non-availability of rice. They have told prices of maize and broken rice are ruling high. This issue is actually under our consideration. We are aware of the problem. Very shortly, we will take a suitable decision," he said. Last month, state-run Food Corporation of India stopped the supply of rice from its depots to ethanol makers.
Team RuralVoice
The government is exploring options to address the issue of non-availability of feedstock like broken rice and maize that is being faced by ethanol manufacturers, according to Food Secretary Sanjeev Chopra.
"The distilleries are facing an issue due to non-availability of rice. They have told prices of maize and broken rice are ruling high. This issue is actually under our consideration. We are aware of the problem. Very shortly, we will take a suitable decision," he said. Last month, state-run Food Corporation of India stopped the supply of rice from its depots to ethanol makers.
On sugar industry body ISMA's demand for a hike in ethanol price to Rs 69.85 per litre, Chopra said a committee is deliberating this issue. "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 said.
The Secretary also mentioned that the share of grain-based ethanol has gradually increased in the last 2-3 years. It stood at 17 per cent in 2021-22. In the current year, it has already crossed 17 per cent. The ethanol blending with petrol has reached 11.7 per cent so far and is hopeful of achieving the target of 12 per cent this year.
He also said that the government is looking at the shortage of grains for ethanol making. As a result, the government is now encouraging maize. Maize is used as an input for ethanol production globally. It was not happening in India somehow. The plan is to increase maize production in the next three years so that more maize is available for ethanol making, he added.
On the issue of sugar output for 2023-24, Chopra said as per available data, the sugarcane area has actually gone up to 56 lakh hectare this year from 53 lakh hectare last year. So, the area has gone up although there has been a concern about patchy rainfall, he said. "Broadly, we find that the crop is in a reasonable condition and there is no cause for panic," he said, referring to Indian Sugar Mills Association's preliminary estimate of sugar production for the 2023-24 season (October-September) at 317 lakh tonne against 328 lakh tonne for the current season.
"The crop is still in the stage of maturity and we will know sugarcane production after a month or so with greater certainty," the Food Secretary said, contesting ISMA's assessment. Chopra asserted that prices of sugar and other essential commodities will remain stable during the upcoming festival season. In the upcoming festival season, Chopra said, "We are not anticipating any rise in prices in sugar, edible oils, rice or wheat. Prices will rule in a stable manner".
In terms of the availability of sugar, the secretary said the country has 108 lakh tonne of the sweetener, while 46-48 lakh tonne of sugar would be required to meet the demand in August and September. "Even then the present availability of sugar is more than sufficient to meet the demand. So, there is no cause for panic," he said and added the country's total sugar consumption is about 275 lakh tonne.
