Friday, May 23, 2008

Now is the time to push 10% ethanol & get a higher price!

Crude touching $130 & the Centre refuses to bail out public sector Oil Marketing Companies which are under tremendous strain & BPCL (Bharat petroleum Corporation Ltd.) one of the oil marketing companies deciding to put Petrol Pumps across the country on a “rationed” supply. The oil crises have touched the neighborhood & still we are not framing the 10% ethanol mandate. Why? If oil can be made available, why not ethanol?

The Government should frame the BIS (Bureau of Indian Standards) Specification of 10% ethanol blend with immediate effect. Already the sugarcane crushing in Maharashtra & Uttar Pradesh is extended till June. That is the sugarcane is still left uncrushed. So ultimately we have the raw material to produce ethanol.

The last resolution mentioned that the ethanol pricing should match Import Parity Price of petrol. During the resolution, crude was $ 50 & the Import Parity Price of petrol Rs. 23to 24. Now crude is $130 so the price of ethanol should be in the range of Rs. 40/- considering the import parity price. But as the tenders floated for purchasing ethanol was for 3 years, hence the price of ethanol never changed from Rs. 21.50 basic. Now it is very clear the Oil Companies are benefited by blending ethanol at Rs. 21.50 & hence ultimately blending of ethanol is helping them to reduce the current losses.

This is the time ethanol manufacturers and Sugar Mill Association should put up a positive plan to the government to mandate or start without mandate the E-10 objective which will help not only to the oil corporations but also to the common Indian public.

Ethanol India

Monday, May 12, 2008

Article food v/s fuel

India Produces all its Ethanol from molasses. In fact it also exports molasses for fuel ethanol & only a marginal %age of potable alcohol is produced from grains. Currently in India no single drop of alcohol for fuel ethanol is from grains route. There is lot of debate of the food v/s fuel aspect, but I think it doesn’t make any sense in India, rather it is not feasible to produce fuel ethanol in India. As the cost is approximately Rs. 20/- a liter considering average yearly prices of grains.

Indian consumption of liquor is around 840 Mn liters & only marginal of potable liquor is produced from grains.

So ultimately if there is debate on fuel v/s food, it is not justified at all. So the anti-ethanol activists should stop debating the food v/s fuel in India & not to confuse the social cause of blending ethanol in petrol.

We can say “anti-ethanol Walon ko food v/s fuel ka bahana chahiye”

Sir, “Yeh public hai, sab janati hai”

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Friday, May 2, 2008

Government can push 10% Ethanol Now

With the oil companies investing in farms & crude going above $100, India can seriously think of 10% blend. The question of excess sugarcane cultivation for the current year is still serious. It was surprising that in the recent budget there was NO single word on ethanol. Why this? On the other hand, in states like Maharashtra the budget gives incentives to farmers for the uncut sugarcane for the current year. This entire sugarcane can be converted to ethanol.

India has potential investors who are ready to invest manufacturing ethanol & country needs ethanol. The government should come boldly ahead and start the 10% objective. We are confident ethanol will come & flow. Government should not worry on ifs and buts, in regards to availability of ethanol.

It is as good as that we know but are not doing, resulting in not knowing.

I think the government should take bold steps & make 10% mandatory & give the message to the world that ethanol is not a “Neglected Business” in India. We are cautious, & have made 5% mandatory & are serious on further increasing it. We know the current UPA Government has done extraordinary for the farmers & ethanol being a direct revenue to the farmers will further help the governments objectives of benefiting the farmers at the rural level.

India has potential of 10 times of what we are being today (in terms of ethanol production). Now is the time to act boldly and making 10% mandatory.

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