At the annual meeting of the Ethanol and Biofuel Manufacturers Association of India, newly elected Executive President and legislator Ranjitsinh Mohite-Patil assured that the supply of 20 per cent ethanol in the country will not face any issues. He urged state ethanol producers to collaborate on the Ethanol Blended Petrol (EBP) Programme to achive 20 per cent ethanol blending target.
He further mentioned that the association had taken various steps to address the challanges face by industry by communicating with government like reduction on ethanol GST and others.
To ensure a smooth supply of ethanol, Mohite-Patil noted that other states have been facing challenges. A request was made to the central government to implement the IDR Act, which has now been accepted nationwide for ethanol. The IDR Act implementation enabled State Governments to avoid complicated documentation procedures and conduct pro-business activities like e-approvals, online permits, electronic locking, GPS tracing of vehicles carrying ethanol etc. thereby shortening the overall process and reducing time to help the business. Additionally, the security deposit required from oil companies for ethanol supply has been reduced from 10% to 1%, although it was increased back to 3% in 2021-2022. He assured that the association would raise the demand for the 1% security deposit with the central government.
Regarding molasses overseas exports, the imposition of a 50% duty on exported molasses has been noted as a measure to boost ethanol production. Over the past five years, the state has seen a significant supply of ethanol. The increase in duty is expected to restrict the overseas export of molasses. Furthermore, the state government has classified water used for ethanol and distillery projects as raw material, raising the water charge from ₹22 to ₹330 per thousand liters. This decision was deemed inappropriate, and the state government has directed the Maharashtra Water Resources Regulatory Authority to make necessary changes. As a result, the classification made in August 2024 was revoked, leading to a ₹5 reduction in the cost of ethanol production.
The central government has also decided to utilize press mud for CBG (Compressed Biogas) projects in sugar mills to promote the green energy sector. With a subsidy scheme for establishing biogas projects now announced, state sugar mills are encouraged to set up press mud-based CBG initiatives.
Following the annual meeting, members discussed the challenges facing new tenders for ethanol supply in 2024-25. It was decided that the association would send a letter to the Union Ministers of Food and Civil Supplies and Petroleum and Natural Gas, as well as the three oil companies, to address these concerns.
The industry is seeking an increase in ethanol prices. On ethanol prices, Ranjitsinh Mohite-Patil said, said, “In communication with the government, we have urged them to increase the ethanol prices for various feedstocks, considering the fair and remunerative price (FRP) of sugarcane. An increase in these prices would not only enhance ethanol production but also strengthen the financial stability of sugar mills, enabling them to pay cane dues more promptly and efficiently. We are optimistic that government will take positive decision on this soon.”
“Also, necessary communication will be made with the central government to link the MSP of sugar with the prices of different feedstocks for ethanol production. Additionally, a request will be made to OMCs for the payment of ethanol supplies to sugar mills within 14 days. Linking it to the FRP payment to sugarcane growers within 14 days will ensure prompt and efficient cane payment,” he further added.
During the meeting, Prashant Wagh of Khandoba Distilleries Private Limited proposed a name change for the association. It was unanimously agreed to rename the association as “The Ethanol and Biofuel Manufacturers Association of India.” Following the discussions, new board of directors were appointed.
In the subsequent board meeting, Pratik Patil and Vikas Raskar were chosen as Vice Presidents. Additionally, the association’s secretary, R.G. Mane, was promoted to the position of Executive Director.
The newly elected board consists of 14 prominent individuals, including:
1) Vijaysinh Shankarao Mohite-Patil (Former Deputy Chief Minister of Maharashtra and President)
2) Harshvardhan Shahajirao Patil (Former Cooperation Minister)
3) Jaiprakash Raosaheb Dandegaonkar (Former Cooperation Minister)
4) B. B. Thombre (Chairman, Wisma)
5) MLC Ranjitsinh Mohite-Patil (Executive President)
6) Pratik Jayant Patil (Vice-President)
7) Vivek Bipindada Kolhe
8) Vikas Ramchandra Raskar (Vice-President)
9) Sharad Arun Lad
10) Sangram S. Deshmukh
11) Praveen Laxmanrao More
12) Swarup Diliparao Deshmukh
13) Ranjit Padmakar Mule
14) Sanjeev R. Desai
