The Government has set a target of 15% ethanol blending in the current Ethanol Supply Year of 2023-24. However, the All India Distillers’ Association (AIDA) feels that it might be difficult to achieve due to the restrictions that the Government has imposed on sugar mills to supply ethanol from sugarcane juice and B Heavy molasses and capped total sugar diversion to 17 lakh tons.
The Association feels that to achieve the 15% blending target for the year, blending has to increase from the current 12% to 17%, especially in the balance period of the current year and the ethanol quantity required to do so is 347 cr litres, for which additional quantity of ethanol needs to be produced.
To fill the gap, AIDA has put forth several suggestions to the Government. “The Government should also relook at the blanket ban imposed on FCI rice for ethanol production and allow FCI to supply rice in limited quantities based on buffer stocks and food security norms”, said V N Raina, DG, AIDA.
He said that the capacities and ability to supply ethanol will be enhanced if the right mix
of rice and maize is established as ethanol output from rice is significantly higher
than maize (45% vs 38%).
Regarding the ample availability of maize as the feedstock for ethanol production, AIDA has suggested that the poultry and starch sectors can look at importing maize under advance licence against re-export. This will have zero impact on the Balance Of Payment.
AIDA has requested the Government to implement the Integrated Ethanol Management System (IEMS) in Q3. This will ease scheduling and reduce decantation time and unlock working capital and infrastructure. The Association has also asked for the timely payments against ethanol supplies to ease working capital and the resolution of PRC of Q3/Q4 for ESY 22/23 to remove the current uncertainty.
