New Delhi; For the benefit of sugarcane farmers, the government has more than doubled the production capacity of molasses-based distilleries; Of these distilleries, 426 crore liters of ethanol are currently produced annually. Sugarcane farmers have been reaping the benefits for the past six years, with more sugar than needed in the country since the 2010-11 sugar season. Drought alone declined in 2016-17. Now that sugarcane is being cultivated in different parts of the country, sugar production will increase even more in the coming days.
During the period from October to September, the country produces 320 lakh metric tonnes of sugar. India's annual sugar demand is about 260 lakh metric tonnes. So the remaining 6 million metric tons left in the normal sugar season is putting pressure on the domestic sugar mills. The price of sugar is also declining as there is leftover sugar in the market. These 60 lakh metric tonnes of additional sugar cannot be sold. So sugar mill owners are having a hard time paying farmers for their sugarcane.
The failure of mill owners to pay Rs 19,000 crore to sugarcane farmers has created a serious situation. As a result, both sugarcane owners and sugarcane farmers are facing financial pressure. This has a negative impact on the sugar economy and the economy as a whole. So sugar mill owners are exporting them to solve the remaining sugar problem. In this regard, the central government is providing financial assistance to the mills for the transportation of sugar. As India is also a developing country, the government can export the remaining sugar by 2023 with financial incentives as per the rules of the World Trade Organization.
India will no longer have this opportunity. Therefore, the emphasis is on ethanol production using additional sugar and sugarcane. If the remaining sugar is invested in a lucrative way, the price of sugar in the country will remain the same. As a result, there will be no problem with sugar storage or damage to farmers and mills. Good coordination between demand and supply can be maintained. If millers' sugar is sold on time, farmers will also be able to pay for sugarcane at the right time. As a result, the sugar industry will be relieved of stress and will function normally.
The government aims to add 10 percent of ethanol to petrol by 2022. Similarly, the ratio is targeted to increase by 15% by 2026 and by 2030 by 2030. In addition to supporting the sugar industry, the government has also allowed the production of ethanol from gum, dorua, paniagud and sugar to protect the interests of sugarcane farmers. The government has also set a lucrative selling price for these ethanol products. The government has also formulated a policy for the supply of ethanol. Ethanol support prices have been increased this season. The government has allowed various distilleries to use the remaining corn and rice in the FCI to produce better ethanol for better fuel quality.
Ethanol's profits have also been announced. The government plans to achieve this goal five years ahead of its goal of adding 20 percent ethanol to petrol by 2030. So now the country does not have enough ethanol efficiency to meet this goal. The government is working to improve this productivity. Ethanol is also being bought by various oil companies in the country from producers under government policy. It is not enough to produce more ethanol. Emphasis should be placed on the production of the ethanol that is required to be added to petrol. This is not possible from sugarcane alone.
This requires first generation or 1G ethanol. It can also be made from tubers, a variety of grains. With that in mind, sugarcane and tuber crops should be increased, along with rice, wheat, manure, various grains, and millet. The government has taken the following decisions.
(1) In order to increase the efficiency of ethanol production, the government has facilitated the provision of interest rebates to the following categories and classes. (A) Interest rates will be available on loans for the establishment of grain-based distilleries and the expansion of such breweries. So distilleries that produce ethanol in the dry milling process will only get this interest discount.
(B) This waiver facility will be available for the installation of new distilleries based on molasses or the expansion of old distilleries. Companies that produce ethanol can also benefit from it, as per the rules and regulations of the Central Board of Environmental Control. (C) Facilities will be provided for the installation or expansion of new dual-feed distilleries.
(D) This government benefit provision will also apply to the conversion of the current molasses-based distillery into a dual feed. Dual feed means the production of ethanol from both mules and grains. (E) Discounts will also be available for the installation of new distilleries using cumin, millet, sugar beet and other grains. Distillers who want to convert rectified spirits into ethanol using M7SDH4 will also benefit from the scheme.
(2) In this case, the government shall bear the cost of debt relief for up to 5 years. Similarly, borrowers have a 1-year suspension order; So that they do not have to repay the loan immediately. (3) Only those enterprises or organizations that produce 75 per cent ethanol using additional distillation facilities will be eligible for debt relief.
As a result of the government's encouragement, 1G ethanol production will increase in the country and the government will be able to complete ethanol mixing in petrol as per the target. It can also collect ethanol from its own source in the country; Which, of course, made the video an overnight sensation. "It simply came to our notice then. It will also allow farmers to get their due on time.
The government aims to add 10 percent ethanol to motor fuels by 2022, increasing distillation capacity and achieving blending in six years. It aims to double by 2030. As of 2014, the country's ethanol distillation capacity was less than 200 million liters. However, in the last six years, the capacity of these distillations has doubled to 426 crore liters per annum. By 2024, the government has launched a joint effort to double the distillation capacity in the country.
In the 2013-14 ethanol supply year, less than 40 crore liters of ethanol were supplied to the country's oil marketing companies. The ethanol was mixed with petrol at a rate of 1.53 percent. However, with the help of the central government, the ethanol of the best fuels in the country has increased and its supply to the oil companies has increased fourfold in the last six years. During the 2018-19 supply year, 189 crore liters of ethanol were supplied and 5 per cent blended. In Maharashtra and Karnataka, however, ethanol production and collection declined in 2019-20 due to declining sugarcane production due to drought alone. In the same year, various distilleries supplied 172.50 crore liters of ethanol. Accordingly, 5 percent of the blending goals were achieved.
In the current 2020-21 ethanol supply year, 325 crore liters of ethanol from various distilleries will be supplied to oil companies. As a result, 8.5 percent ethanol blending in gasoline can be achieved. It is hoped that by 2022, we will be able to reduce this blending target by 10 percent. As the blending level rises, fossil fuels from abroad will be reduced and it will also reduce environmental pollution. As more and more investments are being made to increase the efficiency of distilleries and new distilleries are being set up, employment opportunities will be created in rural areas and this will help meet the goal of building a self-sufficient India.
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