Govt to raise ETHANOL price to increase output

NEW DELHI: In a view to increase country’s ethanol output, Indian government is likely to raise the fixed price of ethanol nearly 5 percent to 10 percent from its current level in the coming months.

An industrial official said “The government may raise the fixed price of ethanol up to Rs 24 per litter from Rs 21.5 per litter”.

The current price of ethanol was fixed when crude oil was trading at around USD60 per barrel, and it is now trading above USD120 per barrel.

The higher price of ethanol would encourage more output, which is necessary to hit India's mandatory 10 per cent biofuel blending target by October this year, he said.

The current level of mandatory blending is 5 per cent.

"There is no shortage of (feedstock for ethanol production) to meet the 10 per cent blending target as well as the needs of the chemical and liquor manufacturers," said the official.

India produced a record 30 million tons of sugar in the crop year ending Sept. 30, 2007, and is projected to produce around 28.3 million tons in the current year, said the official.

Output in the 2008-09 crop year is projected lower around 24 million tons due to an expected decline in the area planted in sugarcane as farmers switch to more profitable crops such as wheat and rice.

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

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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* Brief from Asia’s highest rated web portal on ethanol www.ethanolindia.net

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.

For more information visit Ethanol India

UPA Government Is Serious On Ethanol Now

The World Environment Day, 5th June 2007 will be remembered as the most “happening” day in the history of ethanol manufacturers in India. It was all sweet news in the week. It started by the visit of Honorable President of Brazil Luiz Inacio Lula da Silva in New Delhi. His meet with Honorable Prime Minister Dr. Manmohan Singh concerted focus on trade, economy and strategic partnership & ethanol and its development was one of the hallmark of the summit.

Sooner the UPA government also through Ministry of Petroleum and Natural Gas showed their serious intentions, “Rededicating towards ensuring a greener future”. The UPA government has taken a number of initiatives as a commitment towards the nation and common man in which environmental friendly ethanol blending program was prime on the list. Thanks to the visionary Leaders, Ms. Sonia Gandhi, Prime Minister Dr. Manmohan Singh, Deputy Chairman - Planning Commission Dr. Montek Singh, Agricultural Minister Mr. Sharad Pawar & Finance Minister Mr. P. Chidambaram. They all have shown that they crystallized policies when it comes to the security of common man.

10% blending from October 2008: The Government is serious of considering 5% doping mandatory with immediate effect & are willing to increase it to 10% from October 2008. This decision will be directly benefiting the sugar cane producing states like Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujrat & Bihar. As all these states are facing a serious problem of excess sugarcane cultivation for the current year and also could face the same in future too.

Ethanol from directly sugarcane juice was the only solution left with them. We are proud that our website www.ethanolindia.net has published an article six months before which the government has taken note.

Hard Road Ahead: The policy is now clear but still the question of “comfort zone of Oil Marketing Company” is important. The ethanol producers should concentrate on the technologies by bringing the cost of production at lower end & here Brazil’s input is important. I strongly believe that Indian Technology Providers like PRAJ Industries Ltd., Alfa Laval (India) Ltd, & others are quite superior. PRAJ Industries Ltd has embarked his name in Latin America too.

The Indian Sugar Mills and the private stand-alone ethanol manufacturers should cut the cost of production by using good technologies requiring less utilities like steam, water and electricity and they should also concentrate on co-generation through effluent generated by “Sugarcane Juice & Molasses Route”. The lower cost of production can still bring the ethanol prices down from the current Rs. 21.50 per liter. Suppliers from Maharashtra are supplying at Rs. 19.50 per liter. The Oil Marketing Companies should appreciate this & support them. The ethanol suppliers should now focus on producing large quantum as this could drop the production cost creating a Win-Win Situation.

Brazilian Inputs: Indian ethanol technology is at par with Brazilians. We need to take only the methodology; specifically the Oil Marketing Companies should understand the economics of blending & frame a system which suits their petrol pricing mechanism & then they can bridge with the ethanol pricing mechanism. I further say one step ahead that they should add their own margin on ethanol as they do currently with petrol refining and marketing. I still believe that the price would be much cheaper. The finance ministry has a definite role to play here.

As adding margins to ethanol from Oil Marketing Companies will also keep their interest in blending apart from the pressure of mandate.

The current period can be called as “a turn around period” for sweet future for ethanol manufacturers.

Ethanol India