Scheme ready for maize purchases for ethanol productio
The government has approved the standard operating procedure (SOP) through which agencies such Nafed and NCCF will enter into pacts with distillers for assured supply of maize at `2,291/quintal for ethanol manufacturing, while the agencies will buy maize from the farmers at an MSP of `2090/quintal for kharif season (2023-24).
“The scheme aims to ensure the guaranteed MSP to maize farmers, while distilleries get assurance of uninterrupted supply of the feedstock, de-risking price volatility,” an official said.
The official said that maize procurement will be initiated in the forthcoming rabi season, while according to estimates, around 3.5 – 4 million tonne of maize is annually required for ethanol.
The move is part of the government’s efforts to increase blending of ethanol with petrol, which was around 12% in Ethanol Supply Year (ESY) 2022-23 and the target is to reach 15% in ESY 2023-24.
Source Link: https://www.financialexpress.com/policy/economy-scheme-ready-for-maize-purchases-for-ethanol-production-3399004/
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