Union Budget 2023: How sugar, ethanol sector reacted to the Budget

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman, while presenting the Union Budget 2023-24 in Parliament today stated that in the 75th year of India’s Independence, the world has recognized the Indian Economy as a ‘bright star’ as the Economic Growth is estimated at 7 per cent, which is the highest among all major economies, in spite of the massive global slowdown caused by COVID-19 and Russia-Ukraine War. She emphasized that the Indian economy is on the right track, and despite a time of challenges, heading towards a bright future which includes a technology-driven and knowledge-based economy with strong public finances, and a robust financial sector.

In conversation with ChiniMandi News, various industry stakeholders shared their views on the budget announcement.

Excerpts:
Mr. Vijendra Singh. Executive Director and Dy CEO – Shree Renuka Sugars Limited, commented, “The budget looks very progressive and promising with great attention to developments and upgradations in infrastructure, focus on green energy and many other aspects resulting in a growth oriented economy with a futuristic control on the fiscal deficit. The fiscal deficit target at 6.4% for 2023 is also a very good sign for the economy. The Resilience amidst multiple crises is very commendable. I am sure that this year’s Budget is driving in new energy to India’s development trajectory.

Mr. Samir Somaiya – Chairman & Managing Director – Godavari Biorefineries Ltd. shared, “The budget has been comprehensive, inclusive and green. It has laid emphasis on making India self reliant by continuing the transition towards renewable energy and sustainable agriculture. The PRANAM yojana will encourage regenerative agriculture in the country, so necessary for sustaining the food systems and the bio-economy. Further, the mandate for CBG will catalyze the creation of CBG capacity much like the mandate created capacities for ethanol to meet demand for the ethanol blending programme. In the future, the transition will add capacities in green hydrogen and other renewable technologies. All these initiatives will help India in its march towards energy and food security, mitigation of climate change and ensuring Farmer incomes”.

Mr. Tarun Sawhney, Vice Chairman and Managing Director – Triveni Engineering & Industries Limited said, “In the Union Budget 2023, the Government has provided imperatives for a strong stable economic environment focussed on driving growth and job creation. It has addressed the needs of the common people, the farmers, MSMEs, while emphasizing the sustainability goals of the country. Steps like the Agri Accelerator Fund, and the setting up of 10,000 bio-input resource centers will create meaningful opportunities for natural farming, strengthening the entire agri value chain, especially with greater credit access to the agri sector.

“We are also enthused by the Government’s push on waste to wealth under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme which envisages 200 compressed biogas (CBG) plants and in due course a CBG mandate of 5% for all organizations marketing natural and biogas. These will promote a circular economy and we believe the sugarcane industry and companies like Triveni Engineering & Industries will also meaningfully contribute to the success of this scheme,” he said.

“The tax relief of Rs. 10,000 crore to sugar cooperatives for payment to farmers will empower them to further accelerate growth and reduce arrears. These pragmatic steps will help increase farmers’ income, livelihood, and overall development of the rural economy. Further, the push towards public digital infrastructure for the Agri sector will create a strong growth momentum, connecting stakeholders and acting as a catalyst for transforming the entire farm supply chain,” Sawhney further added.

It is great to see the efforts that the Government has put toward green energy transition in this budget. Steps like viability gap funding for battery storage, renewable energy evacuation, green credit policy incentives, and National Hydrogen for further growth are strong initiatives to support green growth and achieve net zero mission.”

Mr. Varun Karad, Chief Business Officer, GPS Renewables said, “Under the newly announced budget, the central government has made a substantial commitment to investing 10,000 crores in the bio energy sector. This investment is being seen as a major boost to the industry, and has the potential to greatly impact the sector and change the game for the better. With this investment, India is well-positioned to become one of the leading producers of bio energy in the world. I wholeheartedly welcome this progressive move by the Government”

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