Ethanol blending increased by 62%, from 5% in ESY 2019-20 to 8.1% in ESY 2020-21

New Delhi: Government of India has made a number of schematic interventions in order to support the sugar industry and extended financial assistance to sugar mills thereby clearing cane dues of farmers.  To this direction financial assistance was given under various sugar sector schemes – Scheme for Assistance to Sugar Mills for Sugar Season 2018-19, 2019-20 & 2020-21 (Export Schemes); Scheme for Creation and Maintenance of Buffer Stock (Sugar Season 2018-19 – 30 LMT) & (Sugar Season 2019-20 – 40 LMT), Scheme for Sugar Subsidy for extending financial assistance to sugar Mills for enhancement and augmentation of ethanol production capacity, etc. and loan under Sugar Development Fund.  During Financial Year 2021-22, Government of India

 Production of ethanol has increased from 173 crore litres in ESY 2019-20 to 302 crore litres during ESY 2020-21 (October 2020 to Sept 2021). Thus, Ethanol blending has increased by 62%, from 5% in ESY 2019-20 to 8.1% in ESY 2020-21. Production capacity of ethanol in the country has also increased to 825 crore litres as on 30.09.2021 which is sufficient to meet target of 10% ethanol blending in ESY 2021-22.  This production capacity has further increased to 849 crore litres till 31.3.2022.  During the financial year 2021-22, Rs.160 Crore were released to NABARD, the nodal bank, under the Ethanol Interest Subvention Scheme of the Department.  The cumulative released under the Scheme till 2021-22 is Rs.360 Crores.

Total Central Pool Storage Capacity with FCI and Stage Agencies is 958.53 LMT.  Further, Department of Food & Public Distribution has been implementing a Central Sector Scheme for Construction of Godowns with focus on North Eastern Region.  Total outlay of the Scheme is Rs.455.72 Crores and till financial year 2021-22 a cumulative amount of Rs.248.72 Crores has been released under the Scheme.  In order to achieve the physical target set under the Scheme, the validity of the Scheme has now been recommended by the Standing Finance Committee for extension by one year beyond 31-March-2022.

Apart from the above, during financial year 2021-22, Government of India released funds under other flagship Schemes of Department of Food & Public Distribution viz. Integrated Management of Public Distribution System, Centrally Sponsored Pilot Scheme for Fortification of Rice and its Distribution under Public Distribution System, etc.

  • The Integrated Management of Public Distribution System (IMPDS) Scheme with a total outlay of Rs.127.30 Crore is being implemented by the Department.  Till financial year 2021-22, a cumulative total of Rs.81.61 Crore has been released under the Scheme.

 One Nation One Ration Card is an important component under the IMPDS Scheme.  Presently a monthly average of about 2.5 Crore portability transactions (including inter-State, intra-State and PM-GKAY foodgrain transactions) are being recorded in the States/UTs under ONORC. So far, a cumulative total of more than 63 Crore portability transactions have been recorded under the ONORC plan, which comprises of 56 Crore portability transactions performed during the pandemic period.

Centrally Sponsored Pilot Scheme for Fortification of Rice and its Distribution under Public Distribution System, with total outlay of Rs 174.64 Crore was implemented by this Department.  Now pursuant to the announcement made by Hon’ble Prime Minister in his Independence Day Speech on 15-Aug-2022 that the Government will fortify rice given under its various Schemes by 2024, the Rice Fortification Scheme has now been approved for pan-India implementation in the country in a phased manner.  Government of India will incur an additional annual expenditure of Rs.2679/- Crore (approx.) upon its pan-India implementation.

To ensure adequacy of foodgrain in the country thereby making appropriate Budgetary support, bring transparency & efficiency in the Public Distribution System and address the challenges arising out of COVID-19 pandemic, Department of Food & Public Distribution made a number of policy interventions and corresponding budgetary provision during financial year 2021-22.

(Source: PIB)


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