IndiaMaharashtra

Interest subsidy for ethanol projects, increase in co-generation rate

Sugar mills association to state government

|| The best of Saurabh

MUMBAI: With the demand for sugar in the state being 45 metric lakh tonnes, the state will produce more than 100 lakh tonnes of sugar this year as well. The government has K Lee.

The decision to start the sugarcane crushing season from October 15 was taken at a meeting of the Committee of Ministers chaired by Chief Minister Uddhav Thackeray. In 2021-22, the area under sugarcane cultivation in the state is 12.32 lakh hectares and the production is expected to be 97 tons per hectare. This year, 193 mills have been started in the state and 1,096 lakh tonnes of sugarcane is expected to be crushed to produce 112 lakh tonnes of sugar. Ethanol project is implemented in 112 co-operative and private factories in the state and out of which 206 crore lt. Ethanol is produced. With the central government’s policy of boosting ethanol production from sugar, sugar syrup and B-heavy molasses, the target of 10 per cent ethanol blending is expected to be achieved by 2022.

Opportunities in the international market gave impetus to sugar exports and some of the remaining sugar stocks were exported. As a result, the problem of surplus sugar in the state has been reduced to some extent. Sugar mills in the state are showing interest in setting up ethanol projects. The recent financial crisis has raised some questions.

If ethanol is made from sugarcane juice instead of sugar, it will help to solve the problem of excess sugar. Therefore, the state government should provide 3% interest subsidy for the construction of ethanol projects. At the same time, the power generated in co-generation projects in sugar factories is currently being procured at the rate of Rs. Representatives of sugar mills’ associations in the state have demanded that it be increased by Rs 1 to Rs 6.

The sugar industry is an industry that generates Rs 3,000 crore in tax revenue and provides employment to many. The state government also played a positive role in resolving other issues facing the sugar industry while fixing the date of the crushing season in a recent meeting. He hoped that the state government would take a positive decision on the demand for interest subsidy for ethanol projects and co-generation projects, said Jayaprakash Dandegaonkar, president, National Federation of Co-operative Sugar Factories.

 

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