OMCs announce addl incentive of Rs 5.79/liter on maize-based ethanol
The state-owned oil companies (OMCs) have announced an additional incentive of Rs 5.79 per liter on maize-based ethanol. The price of ethanol produced from maize has been hiked from Rs 66.07 to Rs 71.86 per litre. This would benefit companies operating grain-based ethanol plants.
Join the RuralVoice whatsapp group
The state-owned oil companies (OMCs) have announced an additional incentive of Rs 5.79 per liter on maize-based ethanol.
The price of ethanol produced from maize has been hiked from Rs 66.07 to Rs 71.86 per litre. This would benefit companies operating grain-based ethanol plants.
The central government wants to boost ethanol production from maize. Besides boosting maize cultivation, the reason behind this is the fear of decline in sugar production. Last month, the government banned ethanol production from sugarcane juice.
Apart from sugarcane juice, companies also make ethanol from B-heavy molasses and C-heavy molasses. Ethanol produced from C-heavy molasses has the lowest price. The central government wants to avoid a decline in sugar production in view of food security.
Therefore, emphasis is being placed on making ethanol from 'sheera' or maize instead of sugarcane juice. Government oil companies have already announced an incentive of Rs 6.87 per liter for making ethanol from C-heavy molasses.
Avinash Verma, former DG of ISMA and an expert with the ethanol industry, told Rural Voice that the rise in prices of maize-based ethanol is good news. This will boost the procurement of maize. But maize alone cannot meet the demand for ethanol. Ethanol production from rice should also be boosted.
The All India Distilleries Association (AIDA) has welcomed the move to hike the price of maize-derived ethanol.
The central government is trying to promote ethanol production from maize. Union Home and Cooperatives Minister Amit Shah had on January 4 said the government would soon connect maize farmers to ethanol plants. Farmers' maize-growing fields will become petrol-producing wells.
Shah said Prime Minister Narendra Modi has set a target of 20 ethanol blends with petrol. It requires millions of tonnes of ethanol. Farmers who grow corn will be connected directly to ethanol factories.
