“This move to reduce the sugar mills’ stock piles & augment the financial conditions” : M.D. – NFCSF

With a view to increasing blending of ethanol and reducing the import bills of crude, the Government has taken multiple steps including promotion of ethanol production from molasses/sugarcane juice/sugar syrup/ distilleries producing ethanol from damaged food grains such as broken rice, wheat etc. which is unfit for human consumption. Recently, the Government also agreed to produce ethanol from the old sugar stocks piled with sugar mills.

In conversation with ChiniMandi.com, Mr. Prakash Naiknavare – Managing Director – National Federation of Cooperative Sugar Factories Ltd. expressed his views on this move. He said, “This step will have triple benefit viz. getting rid of old sugar stocks, making more ethanol to supply to OMCs @ Rs.59.48/litre.”

“This will not only augment the financial conditions of the ailing sugar industry which have invested in boosting up the ethanol capacities but will also optimize the ethanol production capacities of their mills/distilleries which today is expected to give better returns than that from sugar. And therefore, millers should make the most of this step and make the most of benefits” He added.

It is to be noted that the Government recently approved fixing higher ethanol price derived from different raw materials under the EBP Programme for the forthcoming season 2019-20 during ethanol supply year from 1st December 2019 to 30th November 2020 where the prices of ethanol from C heavy molasses route was increased from Rs.43.46/litre to Rs.43.75 per litre, the price of ethanol from B heavy molasses route was increased from Rs.52.43/litre to Rs.54.27/litre, the price of ethanol from sugarcane juice/sugar/sugar syrup route was fixed at Rs.59.48 per/litre, additionally, GST and transportation charges were approved to be payable and the rate for ethanol derived from damaged food grains unfit for human consumption is fixed at Rs.47.63/litre.

The Central Govt. has the vision to achieve 20% ethanol with petrol by 2030 and is moving in the same direction. Where ethanol provides an additional revenue stream for the sugar companies, besides sugar and bagasse-based power experts believe the production and optimization of ethanol will definitely aid sugar mills to become financially, however it in now onus on the sugar industry to step up and supply the required quantity.

To Listen reduce the sugar mills’ stock piles & augment the financial conditions news click on the play button.

LEAVE A REPLY

Please enter your comment!
Please enter your name here