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 make sure that the last quantity is 56.28.
Ethanol costs 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 using sugarcane juice or sugar syrup for producing ethanol with instant impact to make sure appropriate schedule 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 existing 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 unsure times and make sure prompt walking stick 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 used completely.”
He likewise restated market’s attract prohibit export of molasses with instant impact and the truth that the market waits for more 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 hence conserving fuel expenses. Besides, double feed system distilleries might select CHM, which implies that there can be a limited 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 attaining 15 percent mixing in ESY 2023-24 (November 2023-October 2024).
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