The grain-based ethanol industry claims to be facing an alarming situation due to various issues. To address these concerns, the Grain Ethanol Manufacturers Association (GEMA) has written a letter to Food and Consumer Affairs Minister Pralhad Joshi.
In the letter, GEMA President Dr. Chandra K. Jain, said, “There are Severe shortage of both broken rice and maize due to various factors including failure of monsoon, exports to Southeast Asia and Sub-Saharan African nations, competition by poultry and starch industries for the same feedstock. In the past 6 months the average price of broken rice sky-rocketed from an average of Rs 22-24/kg to Rs 27-29/kg, and even at this price range supplies are limited to sustain production. In the past 6 months, the average price of maize sky-rocketed from an average of Rs 22-23/kg to Rs 26-27/kg, and even at this price range, very limited stock available. NAFED and NCCF are struggling to procure and supply to maize to Dedicated Ethanol Plants (DEPs) as the open market price is higher than the current MSP price of Rs 20.90, and with the revised MSP it is impossible for them to do any procurement for the ethanol industry. They couldn’t meet the requirement of units as per their purchase orders and now they are refunding the amount paid in advance.”
GEMA stressed that DEPs are under financial stress, stating, “As it is, DEPs are under severe financial stress due to steep increase in feedstock price and price fixed by GOI/OMCs has not yet factored in the increase in MSP as well as the rise in open market price. Most DEPs are operating with less than 10 days feedstock, and if the situation doesn’t improve, may have to suspend operations temporarily. Many DEPs are almost on the verge of not able to service their debt, and with the impending suspension of operations, run the risk of being declared as NPAs.”
In light of this alarming situation, GEMA has sought an immediate relief from the government to overcome the challenges on the following lines:
(1) Supply a portion of 17 million tons of surplus rice from FCI stocks to DEPs and fix the price of ethanol in proportion to the FCI issue price.
(2) Permit duty free import of maize by DEPs directly for the next 24 months till prices stabilize in the local market and maize production increases substantially.
(3) In the interim, revise price of ethanol produced from broken rice (DFG) through open market to Rs 72/liter and from Maize procured in the open market to Rs 82/liter.
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We are dealing in all food grains like Wheat Basmati Non Basmati Plushes Edible Oil and Seed Maize paddy since 1985 all over India .
There are very very small Issues on there Government Should be instructed to Agriculuture and Food Ministery.
1) Growing For All Commodities
2) Accurate Prediction
3) Flaxible in Export and Import
For Example wheat huge crops Since last 5 yrs but last 3 yrs govt Precurement is good but after that imposing Stock limit traders are not allowed in Govt Policies only total baseless
Why Govt want to give Subsidy to only Industries while Indutries are well settled.
According us govt should be instructed to allow sale in wheat to protact future huge hikes in Wheat .
Thanks
Sunil Aggarwal
Mob no
9871337292
8800215099
Why can’t we develope Cassava for Bio ethanol production by allowing non irrigated areas which is rain fed crop with less agricultural inputs .in A.P 100 years back Girigen areas like Rampachodavaram in and around Cassava flurished by which about 50 units of Sagi and other starch products produced .China is producing BioEtahanol from Cassava ( Tapioca ) even today with big units above 3000 kL.
This can be tried in tribal areas to uplift them and to reach Ethanol 20 target .
In the tribal and non irrigated area , it will be very appropriate to produce ethanol from Tapioca and spoiled maize crop in marginal units for many advantages. Alongwith marginal ethanol units the loan facilities needs to be increase with proper implementation of cow, goat and chicken small scale farmings in tribal areas. Every ethanol unit in association with local bodies and govt.must strengthen the educational and training facilities upto secondary level and business oriented short duration courses with more representation of females for gender equality.