On Friday, BRS leader B. Parthasaradhi Reddy requested the government to reinstate the supply of broken and surplus rice through the Food Corporation of India (FCI) to grain-based ethanol producers.
Addressing the Rajya Sabha during Zero Hour, Reddy highlighted that around 131 grain-based ethanol plants have been established across India in the past four years, with an investment of Rs 25,000 crore, driven by the government’s biofuel policy.
However, he noted that the sudden stop in FCI rice supply has caused significant disruption in the industry.
According to the news report by PTI, Reddy said that the shortage of feedstock is threatening the entire industry and adversely impacting the Centre’s ambitious E-20 target by 2025.
He also pointed out that despite the government raising the rates for broken and damaged rice and maize, the corresponding adjustment in ethanol prices has not been proportional, rendering the industry economically unviable.
Reddy urged the government to permit maize imports under a tariff relief quota, similar to provisions for other feed industries.
He reminded that before 2018, the Centre relied solely on ethanol from molasses for fuel blending. A new biofuel policy introduced in June 2018 aimed to promote the use of damaged food grains for ethanol production.
The BRS leader stressed that the government needs around 1,000 crore litres of ethanol to meet the E-20 target by 2025, and the 131 grain-based ethanol plants have the capacity to produce 600 crore litres, covering 60 percent of the country’s total requirement.
Continue reading Chinimandi.com for more news about the Ethanol Industry
