Ethanol policy to uplift sugar industry, farmers in Tamil Nadu

The Tamil Nadu Ethanol Blending Policy 2023 aims to attract investment of Rs 5,000 crore for molasses/grain-based ethanol production and make the state self-sufficient in ethanol production to meet its yearly requirement of 130 crore litres, reports The Times of India. This would also help in increasing the income of the farmers and boost the sugar industry in the state.

The future of the sugar industry lies in ethanol throughout the world. World’s largest sugar producer, Brazil uses only 40-45% of the total cane produced for sugar production while the remaining is utilized for ethanol production.

India has achieved a 10% ethanol blending target in the last five years and would achieve a 20% target by 2025.

Srinivasan Suresh, convenor, agriculture & food processing panel, CII Tamil Nadu & MD, EID Parry (India) Ltd, said, “This policy allows ethanol production using multiple feedstocks including grains that would give flexibility to the mills and improve utilization of distilleries. This will also provide a good market to farmers.”

N Ramanathan, MD & CEO, of Ponni Sugars Erode Ltd, said, “This policy brings clarity on taxation and licenses. We have to wait to see whether it brings in new investments and increases production capacities in the state.”


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