Growth of Ethanol sector is an example for the world says Minister Piyush Goyal
Environment friendly fuel like ethanol is top priority of the Prime Minister: Goyal
One day national seminar on Maize and Ethanol
Grain based distilleries will collaborate with farmers for assured production
and procurement of maize in their areas
The growth of ethanol
sector has been tremendous which has set a sort of example for the world, said Piyush
Goyal, Union Minister for Consumer Affairs, Food and Public Distribution,
Textiles and Commerce and Industry while addressing one day seminar
on ‘National Seminar on Maize to Ethanol’ organized by
Department of Food and Public Distribution here today.
Goyal said that in
last nine years, sugar sector has been self-sufficient with more than 99.9%
payment to farmers for previous season. Now, ethanol will support maize farmers
in increasing their income and bringing growth with stability on the lines of
sugarcane farmers. Investment of thousands of crores has come creating
thousands of jobs in rural sector which has generated multiplier effect on
Indian economy. He highlighted that environment friendly fuel like ethanol has
been on the top priority list of the Prime Minister which has resulted in more
than doubling of ethanol blending in just 2 years and target of 20% ethanol
blending has also been preponed from 2030 to 2025.
Timely planning, industry
friendly policies and transparent approach of the Government of India with
collaboration of industry have made these achievements a reality, he said. He
stressed on the need for synchronous efforts of Central Government, States,
Research Institutes, OMCs and Distilleries to achieve the target of 20% ethanol
blending while keeping interests of the farmers always on top priority.
The Union Minister
highlighted that India has transformed in accomplishing bigger goals in shorter
time to be the world leader. Target of E 20 was preponed from 2030 to 2025 so
that India can have clean fuel with propagating farmers’ interests.
The Secretary, Agriculture, Manoj Ahuja also
expressed the need to have more targeted and region specific approach in
promoting cultivation of maize in the country. Secretary, Petroleum supported
the idea and highlighted the work of OMCs in collaborating with industry which
resulted in achieving 10% blending target last year and moving in right
direction to achieve the 20% blending target in time. Secretary, F &PD
spelt out the need for assured procurement of maize at MSP and evolving
enabling ecosystem for the whole sector as basic necessity to achieve the
target for grain-based distilleries.
In India, distilleries generally produce ethanol
from molasses which is the byproduct of sugar. However, only sugarcane route is
not sufficient to achieve the 20% blending target, therefore, ethanol from foodgrains
such as maize, damaged food grains (DFG) and rice available with FCI has also
been allowed. To achieve the target of 20% ethanol
blending with petrol by 2025, about 1016 crore litres of ethanol would be required
and about 334 crore litres of ethanol would be required for other uses. For
this, about 1700 crore litres of ethanol producing capacity would be require
considering plant operates at 80% efficiency.
It is estimated that to achieve the target of
20% blending, the requirement of foodgrains for ethanol production would be
around 165 LMT. Globally, maize is a primary feedstock for production of
ethanol as it consumes less water and is economical, however, in India, the use
of maize as a feedstock for ethanol production is yet to gain momentum.
Currently, grain based distilleries are producing ethanol from foodgrains by
using either Damaged Food Grains (DFG) like broken rice or using FCI rice,
there is hardly any production of ethanol from maize by grain based
distilleries in India. Use of multiple feedstocks for ethanol production will
ensure feedstock security thereby not putting any stress on the availability of
any single feedstock. Moreover, maize based ethanol is more economical and
water efficient.
The production of maize in the country is
consistent. However, due to low demand of maize, farmers are not getting
appropriate price for their produce. Production of ethanol from maize will
increase the demand of maize and therefore will fetch a better price to
farmers. At present, due to export demand, maize prices are high but generally,
market price of maize remain below MSP leading to low cultivation area for the
crop. Use of maize for ethanol production would assure better prices and
consistent demand for maize leading to more cultivation of the crop which is
lesser water consuming crop as compared to paddy. Further, distilleries too
shall be assured about the availability of feedstock in the market which will
not only create win-win situation for both distillers and farmers but also
would be of great help in conservation of water and environment.
During all the
deliberations, all the stakeholders agreed to have a collaborative approach
towards promoting maize production, yield and area. On the lines of sugarcane
sector, distilleries need to support maize farmers and assure procurement of
their harvest at MSP rate of maize. Petroleum Ministry has also shown
willingness to incentivize the ethanol from maize with a medium term stable
pricing policy on the matter. Indian Institute of Maize Research will work on
better varieties while Distilleries need to collaborate with Cattle &
Animal Feed Manufacturers’ Association (CLFMA) on quality standards of DDGS so
that distilleries can tap huge opportunities in the sector. With integrated
strategy of ethanol, DDGS and other by-products from maize, higher
profitability could be ensured for farmers, distilleries and overall industry
which would also cater to meet almost 50% need of ethanol for fuel through
grain based distilleries.
The seminar thus focused on
bringing experts of various varied technological fields under one platform with
the aim of looking at ways on usage of technology as a force multiplier to
understand the concerns and challenges in promoting maize cultivation as well
as to identify a suggestive course of action to progress in achieving the
higher maize production in the country which would certainly benefit not only
farmers and distilleries but also would be of great help in conservation of
water and environment.
Aligning the objective of
Atamnirbhar Bharat in meeting fuel energy needs of the country under Ethanol Blended with Petrol (EBP) Programme, with the
Central Government’s aim to further interest of maize farmers of the country,
the seminar was organized. The objective of the seminar was to bring all stakeholders of Maize and
Ethanol industry at one platform and discuss the strategy and priorities for
promoting maize as primary grain based feedstock for ethanol production to
achieve 20% blending target by 2025. The Seminar was conducted in four
sessions each focusing on key aspect of the overall scenario.
Secretary DFPD, Sanjeev
Chopra along with Secretary, Ministry of Petroleum & Natural Gas, and
Secretary, Pankaj Jain also participated in the Seminar along with eminent
experts from various Government Departments, Institutes, Oil Marketing
Companies and Industry. Distinguished experts from ethanol industry, sugar
sector, Animal Feed Marketing Association and seed/equipment suppliers attended
the Seminar.