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UP among 6 states to achieve ethanol blending level in the country
Date:
29 Jun 2020
Source:
uniindia.com
Reporter:
UNI
News ID:
45333
Pdf:
Nlink:
Lucknow ,Jun 29(UNI) Uttar Pradesh along with some other states have achieved the target in supplying ethanol by the sugar mills to Oil Marketing Companies (OMCs) during the past seven months.
Ethanol supply contracts for 170 crore litres have been entered into between ethanol manufacturers/sugar mills and oil marketing companies (OMCs) for the current ethanol supply year (Dec-Nov) 2019-20.
Against this, 92.5 crore litres of ethanol have already been supplied to the OMCs between Dec 1, 2019 and June 22 2020, achieving an average all India blending of 5.09 per cent with petrol till then.
This is almost as per contracts signed for the supplies. The blending levels achieved in some States like UP, Haryana, Punjab, Uttarakhand, Bihar and Karnataka is much higher at 8.5 per cent to 9.8 per cent with petrol, claimed a press stateme t issued by Infian Sugar Mills Association (ISMA) here on Monday.
The statement said B-heavy molasses and sugarcane juice have been diverted away from sugar, to manufacture and supply 58 crore litres of ethanol to OMCs from in current season upto June 22, 2020.
As per contracts entered into by the sugar mills across the country, another 23 crore litres of ethanol will further be manufactured from B-molasses and cane juice for supply in the balance period upto November 30, 2020. This use of B-molasses and cane juice into production ethanol, and not for sugar production, will result in a diversion of sugar of around 8 lakh tonness.
ISMA claimed that the diversion will not only reduce surplus sugar availability in the country, but also reduce the carrying costs to that extent for the sugar mills. It has and will also give better returns to mills because ethanol prices fixed by the Government are more remunerative than sugar currently, as also give them better cash flows because of immediate sale of the ethanol as compared to delays in sale of the sugar, which could have been stuck in godowns of mills for more than 10-12 months, the statement said .
Accordingly, the blend levels have been maintained at an all India average of 5 per cent for the country.
During the last year 2018-19, around 190 crore litres of ethanol was supplied. But because of drought in Maharashtra and Karnataka and some other States in South India, sugarcane production dropped quite steeply in the current season, 2019-20, because of which not only did the sugar production fall by 18 per cent , but the availability of molasses too fell as steeply. That is the reason that the ethanol offers also fell and contracts for supplies of ethanol decreased to 175 crore litres in this season.
ISMA said with better rainfall and water availability, the acreage under sugarcane for next season, 2020-21 is back to normal, and sugarcane production is expected to improve again. Therefore, as also considering that ethanol production capacity in the country has increased to over 375-400 crore litres, the Centre is targeting an ethanol production and supply target of 300-350 crore litres in 2020-21, and achieve 7.5-8 per cent ethanol blend levels with petrol.
As laid down in the National Biofuels Policy, 2018, the Government intends to achieve ethanol with petrol blend levels of 10 per cent by 2022 and 20 per cent by 2030, and therefore, efforts are being made to achieve the targets.
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