Government should consider diversion of more sugar to ethanol production: Atul Chaturvedi
Atul Chaturvedi of Shree Renuka Sugars noted a shift in ethanol production this season, with maize and grains surpassing sugarcane. Following the government’s December 2023 ban on ethanol from sugarcane juice and B-heavy molasses, production from grains rose to 54%, while sugarcane’s share fell to 46%. Chaturvedi highlighted issues with maize by-products affecting poultry and suggested revisiting policies to better support the sugar sector. India aims to produce 10.16 billion liters of ethanol by 2025, with significant contributions needed from both sectors.
Chinimandi: Atul Chaturvedi, Executive Chairman of Shree Renuka Sugars said that ethanol production from maize and grains are more this season as compared to ethanol produced from sugarcane.
In a panel discussion with Zee Business, Chaturvedi explained that with the government banning ethanol production from sugarcane juice and B-heavy molasses in December 2023, the increase is obvious in ethanol production from maize and rice. Other sectors thus filled up the gap.
He said the latest figures were that as of July 15, 54% of ethanol production came from grains while about 46% from the sugar sector.
Chaturvedi pointed out that ethanol production from maize results in a by-product called DDGS, which is causing huge toxin problems in the poultry industry. While the cost of maize, available at ₹20-22 per kilogram, has increased to ₹27 per kilogram, making maize less profitable. He opined that anything in surplus should be diverted for the production of ethanol like Indonesia and Malaysia divert their surplus palm oil for biodiesel.
In his view, maize is not in surplus in India. The roadmap prepared by NITI Aayog laid down that India would need 10.16 billion litres of ethanol by 2025 to achieve a blending of 20%. Of this, 5.5 billion litres would come from the sugar sector and close to 4.6 billion litres from maize and others. Now, what the government needs to do, he feels, is revisit policies for the promotion of the sugar sector in ethanol production.
Source Link : https://www.chinimandi.com/government-should-consider-diversion-of-more-sugar-to-ethanol-production-atul-chaturvedi/
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