Global commodity leader Olam Agri is investing around $60 million in a multi-input bio-ethanol plant in Rajgoli, Maharashtra. Olam already operates a sugar factory there with a crushing capacity of 4,000 tonnes per day.
“Given the recent government policies on mixed fuels and the shift from B10 to B20, we believe that integrating forward into bio-ethanol production is the right move. We are investing close to $60 million in a multi-input capability distillery, which means that if the cane production is low, we can substitute that with corn and vice-versa,” Muthukumar Neelamani, Group CFO of Olam Agri, told Businessline at the Samunnati FPO Conclave in Hyderabad.
Olam Agri plans to double its sugarcane crushing capacity to about 8,500 tonnes per day with the new bio-ethanol unit, which is expected to start operations by March next year.
Headquartered in Singapore, Olam Agri operates in over 30 countries and engages in various sectors including rice, cotton, pulses, sugar, and recently bio-ethanol. “India is a significant market for us,” said Neelamani.
The company is also expanding its collaboration with farmer producer organizations (FPOs) in rice. Following the success of a pilot project last year involving about 6,000 farmers in Madhya Pradesh, Olam has increased its FPO engagement this year to include six FPOs and around 11,000 farmers. Neelamani expressed the company’s intention to replicate this model in the sugarcane and corn industries.
Since 2011, Olam has worked with nearly 25,000 sugarcane farmers and has partnered with organizations like IFC and Solidaridad to promote sustainable agriculture practices and enhance yields.
Continue reading Chinimandi.com for more news about the Ethanol Industry
