The government is leaving no stone unturned to boost ethanol production, focusing on diverting more maize towards ethanol production in line with the country’s fuel-blending programme. This is evident from the steps the government is taking.
According to reports, plans are in place to utilize more sustainably grown maize, for which the government has approved new research projects worth Rs 24.51 crore. Of this amount, Rs 15.46 crore has been allocated to the state-run Indian Institute of Maize Research (IIMR) to boost corn production in ethanol industry catchment areas. Scientists from IIMR have been tasked with intensifying research for climate-resilient high-starch maize hybrids by the financial year 2025-26, with Rs 5.32 crore earmarked for this purpose. Additionally, Rs 3.73 crore has been designated for scaling up the silage or maize feed value chain.
Furthermore, to ensure a continuous supply of maize for ethanol production, the government has authorized cooperatives NAFED and NCCF to sell maize to distilleries at a base price of Rs 2,291 per quintal. They will procure maize at a minimum support price of Rs 2,090 per quintal in the 2023-24 crop year and supply it to distilleries at a mutually agreed rate of Rs 2,291 per quintal. This move aims to ensure producers receive an uninterrupted supply of feedstock for ethanol production.
Moreover, in a significant step to boost ethanol production from maize, Oil Marketing Companies (OMCs) have announced an additional incentive of Rs 5.79 per liter (excluding GST) for ethanol sourced from maize. This is in addition to the existing procurement price of Rs 66.07 per liter for maize-based ethanol, resulting in a total effective price of Rs 71.86 per litre.
OMCs have shortlisted 107 applicants to establish production capacity for 374 crore litres of grain based ethanol annually in Andhra Pradesh, Goa, Gujarat, Kerala, Odisha, Rajasthan, Telangana, Tamil Nadu, and the UTs of Jammu & Kashmir, & Ladakh. This initiative will also encourage maize as a major feedstock in these regions.
Considering the scarcity of raw materials, maize will play a key role in achieving the ethanol blending target. It’s commendable to see the government taking steps to boost ethanol production from maize. Not only will this initiative bolster ethanol production, but it will also benefit farmers and reduce our reliance on crude oil imports.
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