Public sector oil marketing business (OMCs) have actually revealed a reward of 6.87 per litre for ethanol produced from C-Heavy Molasses (CHM) for the ethanol supply year (ESY) 2023-24, which ends in October.
The reward will be paid beyond the previous ESY (2022-23) procurement rate of ethanol sourced from CHM at 49.41 per litre. The relocation is focused on promoting the supply of ethanol from CHM, which has the most affordable sucrose material.
After the federal government states the rate of ethanol sourced from CHM for ESY 2023-24, the reward quantity will be modified to guarantee that the last quantity is 56.28.
Ethanol rates now stands at 64 a litre from harmed rice, 66.07 from maize, 56.28 per litre from CHM and 60.73 per litre from B-Heavy Molasses (BHM).
- Likewise Check Out: Govt might permit around 28 cr litres of ethanol to be produced from sugarcane juice
On December 7, the federal government prohibited making use of sugarcane juice or sugar syrup for producing ethanol with instant impact to guarantee appropriate accessibility of sugar for domestic intake. Nevertheless, the restriction is a “short-lived time out” due to an absence of clearness on sugar output for the present season.
Inviting the advancement, sugar market body ISMA’s President M Prabhakar Rao stated, “Nevertheless, I likewise think that it needs to be even more increased to assist the market browse much better in these unpredictable times and guarantee prompt walking cane rate payments, mitigation of losses and assist enhance ethanol production. Not to discuss, the high interests that market is spending for financial investments in the boost of ethanol production capability that is now not being made use of totally.”
He likewise repeated market’s interest prohibit export of molasses with instant impact and the reality that the market waits for additional boost in rate of ethanol from BHM and sugarcane juice (SCJ).
Sources stated that BHM is much better compared to grain for producing ethanol. For example, its effluent can be utilized as a slop in boiler therefore conserving fuel expenses. Besides, double feed system distilleries might go with CHM, which indicates that there can be a minimal boost in sugar production.
Throughout ESY 2022-23, the OMCs drifted a tender for 599.7 crore litres of ethanol, versus which letters of intent (LoIs) for 567 crore litres were released. Throughout the year, SCJ represented 25 percent of the ethanol production, BHM (45 percent), CHM (1 percent) and foodgrains (29 percent).
India attained the target of 12 percent mixing of ethanol with fuel in ESY 2022-23 and 10 percent mixing in ESY 2021-22. The Ministry of Petroleum and Gas (MoPNG) has actually set a target of accomplishing 15 percent mixing in ESY 2023-24 (November 2023-October 2024).