The Centre on Tuesday clarified that using rice from Meals Company of India (FCI’s) godowns at a reduced worth of Rs 2,000 per quintal is simply an middleman association to make sure that the upcoming grain based mostly distilleries don’t fall wanting prepared feedstock and the primary uncooked materials for such distilleries will proceed to be maize not rice.
“In case you see the world over too, of the ten,000 crore litres of ethanol produced yearly, round 73 per cent comes from maize and a really small proportion is from rice. In India too, surplus rice from FCI will solely be used to make sure that 100 crore liters of capability arising for grain based mostly distilleries don’t fall wanting feedstock whereas maize manufacturing picks as much as feed these vegetation,” meals secretary Sudhanshu Pandey informed reporters.
He was responding to a query on whether or not the FCI promoting surplus rice at Rs 2,000 per quintal for making ethanol is cheap whereas it sells the identical rice at greater worth for open market operations and in addition on who bears the subsidy for such low-cost sale.
The subsidy can be incurred because the financial value of FCI rice for 2020-21 is estimated to be round Rs 30 per kg whereas the identical can be bought to grain-based distilleries at Rs 20 per kg as per the brand new coverage.
Pandey additionally stated that India will mix round 8-8.5 per cent of ethanol with petrol in provide 12 months 2020-21 (December to November) out of which round virtually 13 per cent will come from non-sugarcane sources as feedstock whereas one other 57 per cent from B-heavy molasses.
It will place the nation on the right track to realize a ten per cent ethanol mixing goal by 2021-22 provide 12 months and thereafter 20 per cent ethanol mixing by 2025.
“If India manages to realize 20 per cent ethanol mixing by 2025, then it would result in 30-35 per cent discount in carbon monoxide, 20 per cent discount in hydrocarbon, will divert round 16.5 million tonnes of surplus grains and in addition 6 million tonnes of extra sugar thus benefiting farmers,” Meals Secretary Pandey stated. EoM