Ethanol production from Rice: Important update from Govt on subsidised rate
The Indian government has decided not to resume subsidized rice sales for ethanol production, discontinued since July 2023 due to concerns over domestic supply and prices. Food Secretary Sanjeev Chopra confirmed there are no plans to revisit this policy. Instead, the focus is on increasing ethanol production from maize, which has seen a significant rise, with 50 crore liters produced in the 2024-25 supply year. The government is also monitoring the expected decline in sugar production and has raised the fair and remunerative price (FRP) of sugarcane to Rs 340 per quintal for the upcoming season to encourage increased sowing.
Ethanol Production in India: The government has refused to resume the sale of subsidized rice to grain-based distilleries for ethanol production. The rice sale for the production of ethanol was discontinued in July 2023 for multiple reasons such as apprehensions about domestic output, high retail prices, and economic viability, among others.
Speaking to reporters on Thursday, Food Secretary Sanjeev Chopra said that there is no proposal to revisit that policy. Chopra was responding to questions on whether the government plans to resume the sale of subsidized rice for ethanol production. The move comes at a time when there are multiple reports of a decline in sugar production in the ongoing financial year (October-September).
Maize to be encouraged for Ethanol Production
The government is focusing on maize to increase ethanol production in the country. “As of now, there is a huge jump in ethanol made from maize. About 50 crore liters of ethanol made from maize has been supplied in the 2024-25 supply year. The industry which has put up grain-based distilleries should use maize for ethanol production,” he said, reports PTI.
Fall in Sugar Output
Chopra added that the government is aware and concerned about the expected fall in sugar output next season. However, the Food Secretary added that it is too early to predict any kind of sugar production figures for next season. “We will get to know about the production during August for the 2024-25 season,” says Chopra, reports PTI.
FRP of Sugarcane
Chopra further said the increase in fair and remunerative price (FRP) of sugarcane for the next season has been a good signal to farmers to increase the sowing. Earlier, the government increased sugarcane FRP to Rs 340 per quintal for the 2024-25 season from Rs 315 per quintal this season. In the last 10 years, sugar mills have earned revenue of more than Rs 94,000 crores from the sale of ethanol which has added to the bottom line of sugar mills.
Source Link : https://www.msn.com/en-in/news/India/ethanol-production-from-rice-important-update-from-govt-on-subsidised-rate/ar-BB1l702z
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