Distillers making ethanol from grains demand increase in purchase price

25-Oct-2024 05:49 PM

New Delhi. Grain-based distilleries have asked the Central Government to direct the Oil Marketing Companies (OMCs) to immediately increase the purchase price of ethanol made from maize and damaged grains so that distillers can be saved from the huge losses incurred in keeping their plants running.

A few weeks ago, distillers had informed senior government officials that the price level at which OMCs are purchasing ethanol made from grains should be determined on the basis of the price of raw material along with other expenses, which also includes Minimum Support Price (MSP), Mandi fee, storage and transportation costs.

Distillers had said that the supply of surplus stock of rice from Food Corporation of India should continue to distillers for the next three-four years until there is a huge increase in maize production in the country.

It is worth noting that after stopping the supply of rice to distilleries for about a year, the Food Corporation has recently resumed it.

Now 23 lakh tonnes of rice stock has been allocated for distillers. Distillers have also demanded that the price of ethanol produced from all types of grains should be fixed uniformly and a roadmap needs to be prepared for the consumption of ethanol through flex fuel vehicles from the year 2025 onwards.

Distillers said that they are incurring an economic loss of Rs 9.28 per bulk litre on the production of ethanol from corn and Rs 8.36 per bulk litre on the production of ethanol from damaged grains. The government should immediately pay attention to this.