Maharashtra sugar factories produce over 65 cr litres ethanol so far this year, much above target: NFCSF

Private and co-operative sugar factories as well as standalone distillery units in Maharashtra have produced and supplied 65.06 crore litres of ethanol so far this year, as against the target of 59.61 crore litres set till October, the National Federation of Co-operative Sugar Factories (NFCSF) said on Thursday.

Talking with PTI, NFCSF President Jayprakash Dandegavkar said the purchase prices of ethanol should also go up with the fuel prices in the country by keeping the base price intact.

“In Maharashtra, the private and co-operative sugar factories and standalone distillery units were given the target of making and supplying 59.61 crore litres of ethanol till October 2021.

“The state has overachieved the target and has supplied 65.06 crore litres of ethanol till date. The target of ethanol production for the state can go up by 30 per cent,” he said.

Sugarcane is being used to make ethanol in the country and it will prove helpful to some extent to those factories that are currently in financial crunch, he added.

“Ethanol-making will help those factories that are facing losses. We have surplus stock of sugar being produced every year leading to the decline in sugar prices. Many times, sugar is sold below the minimum support price (MSP) by factories due to the excess stock.

“If a good amount of diversion of factories towards ethanol takes place, it will stabilise the factory and also give ethanol production,” he said.

Dandegavkar expressed concern over the entry of private players in the Indian market that might purchase ethanol.

“There is security for ethanol prices as of today. But, if private players enter the Indian market in the future, they may not be bound to purchase ethanol from sugar factories.

“The government should make it mandatory to these private players to purchase ethanol from the sugar factories in the country instead of abroad,” he said.

Another issue with the ethanol production is its fixed purchase price, Dandegavkar said.

“The prices of ethanol should be linked with the fuel prices in the country. We have a policy that if the purchase price is fixed, it won’t change for at least four-five years.

“But, the prices should be linked to the market situation. As the fuel prices go up, the sugar factories should also get benefit out of it in terms of the price of ethanol,” he said.

The above news was originally posted on economictimes.indiatimes.com