News Release Details
Alcohol-based industry opposes ethanol blending
Mumbai 13-Sep-2007
Chemicals and alcohol-based industries have strongly opposed the Center’s decision to make ethanol blending in auto fuel mandatory. The industry, in a recent presentation to the petroleum ministry, has noted that oil-marketing companies (OMCs) should go ahead with 5% blending, only, if it was commercially viable. For this, they should not offer more than market price of alcohol. Instead, the price should be market determined. The industry feels that if the government makes blending mandatory, OMCs will be forced to pay a high price for ethanol. This is going to benefit no one but a few sugar mills who will cartelise and offer a highly inflated ethanol price. According to chemical and alcohol-based industries, current size of alcohol-based chemical industry is Rs 4,000 crore and it uses 11,100 lakh liters of alcohol annually. For meeting ethanol-blending requirement at 5% level, additional 6,100 lakh litters of alcohol is needed. On top fit, 300 lakh metric tonne of sugar needs to be produced to have enough molasses to produce sufficient alcohol to meet the total demand. According to the industry, the distillation capacity is not catching up which is the key bottleneck. There is a surplus molasses dosing stock and exports are being made due to lack of distillation.The chemical and alcohol based industries have suggested that the ethanol blending programme, which emerged during the peak cycle of cane crop has yet to see low crop years and till that time the programme cannot be made mandatory, let alone any further increase in blend percentage. "No mandatory blending should be introduced till alcohol production is increased in the country. For this increased distillation, improve yield, better cane varieties and more research and development for better processes be encouraged," they said. Current size of alcohol based chemical industry is Rs 4,000 crore and it uses 11,100 lakh liters of alcohol annually. The chemical and alcohol-based industries have suggested that the ethanol-blending programme be implemented very cautiously and in phased manner till sufficient quantities of ethanol are actually available in the country. According to them, increasing sugarcane yield is of great importance and it can be achieved through better varieties and education on better farm management.
Mumbai 13-Sep-2007
Chemicals and alcohol-based industries have strongly opposed the Center’s decision to make ethanol blending in auto fuel mandatory. The industry, in a recent presentation to the petroleum ministry, has noted that oil-marketing companies (OMCs) should go ahead with 5% blending, only, if it was commercially viable. For this, they should not offer more than market price of alcohol. Instead, the price should be market determined. The industry feels that if the government makes blending mandatory, OMCs will be forced to pay a high price for ethanol. This is going to benefit no one but a few sugar mills who will cartelise and offer a highly inflated ethanol price. According to chemical and alcohol-based industries, current size of alcohol-based chemical industry is Rs 4,000 crore and it uses 11,100 lakh liters of alcohol annually. For meeting ethanol-blending requirement at 5% level, additional 6,100 lakh litters of alcohol is needed. On top fit, 300 lakh metric tonne of sugar needs to be produced to have enough molasses to produce sufficient alcohol to meet the total demand. According to the industry, the distillation capacity is not catching up which is the key bottleneck. There is a surplus molasses dosing stock and exports are being made due to lack of distillation.The chemical and alcohol based industries have suggested that the ethanol blending programme, which emerged during the peak cycle of cane crop has yet to see low crop years and till that time the programme cannot be made mandatory, let alone any further increase in blend percentage. "No mandatory blending should be introduced till alcohol production is increased in the country. For this increased distillation, improve yield, better cane varieties and more research and development for better processes be encouraged," they said. Current size of alcohol based chemical industry is Rs 4,000 crore and it uses 11,100 lakh liters of alcohol annually. The chemical and alcohol-based industries have suggested that the ethanol-blending programme be implemented very cautiously and in phased manner till sufficient quantities of ethanol are actually available in the country. According to them, increasing sugarcane yield is of great importance and it can be achieved through better varieties and education on better farm management.