Page 3 - Ethanol Production

Centre slashes FCI rice price by Rs 550 per quintal to Rs 2,250 for states

The Centre on Friday reduced the reserve price of FCI rice under the Open Market Sale Scheme (OMSS) by Rs 550 per quintal to Rs 2,250 for states and ethanol producers to boost sales and support food security measures. According to a Food Ministry order, state governments and state-run corporations can purchase up to 12 lakh tonnes, while ethanol distilleries are allowed to buy up to 24 lakh tonnes at a reduced rate. The previous reserve price was Rs 2,800 per quintal for both categories. The Food Corporation of India (FCI), which manages rice stocks through weekly e-auctions, will implement the revised policy until June 30, 2025. Private traders and cooperatives will continue to pay Rs 2,800 per quintal, while central cooperatives like Nafed, NCCF and Kendriya Bhandar selling under the 'Bharat' brand will pay Rs 2,400 per quintal. The ministry has mandated that the third cycle tender for about 110 crore litres of ethanol during 2024-25 should use FCI rice, with preference given to

India to achieve 20% ethanol blending target in 2 months: Gadkari

India will achieve its target of 20 per cent ethanol blending in the next two months, Union minister Nitin Gadkari said on Wednesday. The practice of blending ethanol with petrol began in 2001 as a pilot project. "We will achieve this target of 20 per cent ethanol blending in the next two months. Use of E20 (petrol with 20 per cent ethanol) will help in reducing pollution," Gadkari said while speaking at an event. The road transport and highways minister said Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Hyundai Motors have started manufacturing vehicles that run on 100 per cent bio-ethanol. Gadkari said pollution is a serious problem in the country as 42 Indian cities are among 50 most-polluted cities in the world. "We import fossil fuels worth Rs 22 lakh crore, which is also causing pollution," he said. Prime Minister Narendra Modi had launched the higher 20 per cent ethanol-blended petrol in 2023. In the first phase, 15 cities was covered. Use of ethanol, extracted fr

Govt to focus on ethanol needs before considering sugar exports: Food secy

ISMA has urged the government to permit sugar exports immediately, citing favourable global market conditions

Govt urges sugar industry to diversify into ethanol-diesel, green hydrogen

Road, Transport and Highways Minister Nitin Gadkari on Thursday called upon the sugar industry to explore multiple avenues for diversification, including ethanol-diesel blending and green hydrogen production. Addressing the annual general meeting of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) virtually, the minister emphasised the need for setting up ethanol and CNG pumps, including through private sector participation. There is a huge potential for flex engines, ethanol-based engines, and bioCNG as alternatives to fossil fuels. Five automakers including Tatas, Suzuki, and Toyota are set to launch flex engine fuel cars in the market, he said and urged the tractor makers to start manufacturing tractors on alternative fuels. The minister suggested examining possibilities of exporting ethanol to neighbouring countries like Bangladesh, Bhutan, Nepal and Sri Lanka to expand market opportunities. Bio-bitumen production using lignin and biomass sources, along with gr

Centre grants approval for 47 ethanol projects in Bihar for loan subsidies

A total of 47 projects from Bihar have been issued in-principle approvals for interest subvention on bank loans for establishing new or expanding existing distilleries, the government said on Wednesday. Currently, 22 ethanol distilleries - 8 molasses-based and 14 grain-based - are operational in Bihar, Minister of State for Food Nimuben Jayatibhai Bambhaniya said in a written reply to the Lok Sabha. The government is implementing the Ethanol Blended Petrol (EBP) Programme nationwide, with Oil Marketing Companies (OMCs) selling petrol blended with ethanol. Under the programme, the government has set a target of 20 per cent ethanol blending with petrol by 2025-26. To boost ethanol production capacity and meet blending targets, the Centre has introduced various Ethanol Interest Subvention Schemes from 2018 to 2022. Under these schemes, 47 projects from Bihar have received in-principle approvals, she said. For each Ethanol Supply Year (ESY), OMCs invite bids from distilleries for etha

Ethanol blending saved foreign exchange worth Rs 1.08 trillion since 2014

Farmers have been paid Rs 92,409 crore so far as part of the ethanol blending program, data shows

Centre may raise purchase price of cane ethanol by up to Rs 3 per litre

A formal Cabinet note could be moved in a few days after GoM nod

Turning leftovers into mileage: How potatoes could soon power your vehicle

The Central Potato Research Institute is expected to start a plant to convert potato waste into ethanol by targeting peels and the starch from potato washing water as key components for conversion

Dwarikesh Sugar, Shree Renuka: Why sugar stocks are buzzing in trade today

Key players in the sector, including Shree Renuka Sugars, Dhampur Sugars, and Balrampur Chini Mills, were among the top gainers.

Ethanol push turns India into corn importer, shaking up global mkt

India usually exports 2 million to 4 million metric tons of corn, but in 2024, exports are expected to drop to 450,000 tons

Govt permits sale of 2.3 mn tonne of rice from FCI to ethanol makers

The government on Thursday permitted the sale of up to 23 lakh tonnes of rice from Food Corporation of India (FCI) stocks to grain-based ethanol distilleries, reversing a ban imposed last year. The food ministry, as per a directive, has allowed ethanol producers to participate in e-auctions and purchase rice between August and October 2024 under the Open Market Sale Scheme (OMSS). This decision comes as the government grapples with surplus rice stocks exceeding 540 lakh tonnes, prompting efforts to create storage space for the upcoming harvest. The ministry stated, "Maximum 23 lakh tonne may be allowed for lifting to ethanol distilleries." Ethanol makers can purchase rice through weekly e-auctions. Purchases are subject to ethanol allocation by oil manufacturing companies. The government had halted rice sales for ethanol production in July 2023. The ban coincided with restrictions on non-basmati white rice exports. The FCI has been conducting e-auctions for rice sales to private

Govt allows sugar mills to use cane juice for ethanol production from Nov

he world's second-biggest sugar producer imposed restrictions on diverting sugar for ethanol production in December 2023 to increase sugar output after cane crop was hit by below-average monsoon rains

Can maize maintain its newfound supremacy in ethanol production?

Some reports say the maize-based industry has demanded immediate imports of 5 million tonnes of duty-free imports to tide over the supply crunch

Sugarcane set to reclaim dominance as ethanol feedstock next year: Industry

Industry experts anticipate a shift back to sugarcane-based molasses as the primary feedstock for ethanol production next year, driven by expected surplus sugar supplies and calls to lift restrictions

Govt mulls ethanol price hike for 2024-25 season to increase production

The government is considering a proposal to increase ethanol prices for the season starting November 2024, while also pushing for diversification of feedstocks, as it aims to achieve the 20 per cent blending target by 2025-26, sources said. A committee headed by a joint secretary from the petroleum ministry has already held one round of discussions on the proposal. The revision of ethanol prices will be based on the fair and remunerative price of sugarcane, they added. "The price revision is being considered on priority to incentivize production and meet our blending goals," a source said, requesting anonymity. Last week, Cooperation Minister Amit Shah called for a multi-dimensional approach to biofuel manufacturing and affirmed that India would achieve its 20 per cent ethanol blending target by 2025-26, ahead of the original 2030 deadline. Ethanol prices, fixed by the government, have remained unchanged since the 2022-23 season (November-October). Currently, ethanol produced from

Used cooking oil over ethanol: Govt's new route to 5% biodiesel blending

Oil-marketing companies may expand from 200 locations to source used cooking oil

Amit Shah urges sugar mills to diversify ethanol, biofuel production

Cooperation Minister Amit Shah on Saturday called on sugar mills to explore alternatives to sugarcane for ethanol production, pushing for a multi-dimensional approach to biofuel manufacturing. Speaking at an event organized by the National Federation of Cooperative Sugar Factories (NFCSF), Shah said India would achieve its 20 per cent ethanol blending target by 2025-26, ahead of the original 2030 deadline. The minister highlighted that the government's ethanol blending programme has helped reduce the country's crude oil import bill and address environmental concerns. "You need to be futuristic and look at opportunities and expand. Ethanol can be made from multiple sources," Shah said, urging cooperative sugar mills to shed their "orthodox" approach and explore alternative feedstocks such as maize and bamboo. Shah said about 1,000 crore litres of ethanol is required for blending, and the necessary infrastructure to achieve this target is in place. He emphasised the need for sugar m

Godavari Biorefineries files IPO, aims to raise Rs 325 cr via fresh issue

Ethanol and bio-based chemicals maker Godavari Biorefineries Ltd on Saturday filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The proposed initial share-sale is a combination of fresh issue of equity shares worth Rs 325 crore and an Offer-for-Sale (OFS) of 65.27 lakh equity shares by promoters and an investor according to the draft red herring prospectus (DRHP). Private equity firm Mandala Capital AG Ltd is offloading 49.27 lakh shares through the OFS route. Proceeds from the fresh issue to the tune of Rs 240 crore will be used for debt payment and the remaining amount for general corporate purposes. The Maharashtra-based Godavari Biorefineries is one of the prominent manufacturers of ethanol-based chemicals in India. The company's diversified product portfolio comprises bio-based chemicals, sugar, different grades of ethanol and power. These products find application in a range of industries such as food, ...

ARAI to invest Rs 500 cr over next 4-5 yrs to enhance H2ICE testing infra

The agency already has testing capabilities for ethanol 20 fuel-compliant vehicles

Sugar mills can use 670,000 tons of B-heavy molasses to make ethanol: Govt

The government has allowed sugar mills to use 6.7 lakh tonnes of B-heavy molasses as feedstock for making ethanol in the current year, a senior Food Ministry official said on Wednesday. Sugar mills were holding excess stock of B-heavy molasses -- a byproduct of the sweetener -- produced before the ban on its use on December 7 last year. However, a week later, the government reversed the ban and allowed the use of cane juice and B-heavy molasses, but within the overall cap of a diversion of 17 lakh tonnes of sugar for ethanol production for the 2023-24 supply year (November-October). "We have permitted sugar mills to use B-heavy molasses lying with sugar mills for ethanol. The same has been communicated to the Petroleum Ministry," the official told PTI. This will be over and above the capped diversion of 17 lakh tonne of sugar for ethanol production for 2023-24, he added. Currently, sugar mills have a B-heavy molasses stock of 6.7 lakh tonnes as per the state cane commissioners. T