The govt said the rise would boost supplies and help sugar companies to pay their dues to farmers. India also wants to double ethanol blending with gasoline.
State expecting investment of Rs 30,382 crore in ethanol sector, minister Syed Shahnawaz Hussain said Thursday. He also announced Bihar Investors' Summit, to be held in Delhi on 12 May.
Any major diversion of corn usage towards ethanol production would severely impact India's poultry sector. Modi govt's target of E20 by 2025 needs 2G biofuels.
The Cabinet Committee on Economic Affairs raised the price of ethanol extracted from sugarcane juice to Rs 63.45 per litre from the current Rs 62.65 per litre.
The govt says doubling ethanol production will save India Rs 30,000 crore a year by cutting crude imports, reduce carbon emissions & boost farmers’ incomes. But critics term it self-goal.
India’s delivery giants are finding there aren’t many models available that can be deployed at scale, and what supply there is can’t keep up with demand.
While use of ethanol has many advantages for India, diverting sugar for its production may be the biggest change for the global sugar industry and could drive a bull market.
Concerns range from whether existing vehicles would be E20 compliant, loss in fuel efficiency & whether India has capacity to maintain a consistent ethanol supply.
The Modi government plans to use India’s central pool stock of grain like rice to match its ethanol commitments. In an undernourished country, that’s a bad policy.
China flaunted military might & modernisation as it displayed stealth drones, anti-satellite system & cyber warfare contingent during parade to mark victory over Japan in WWII.
From Munir’s point of view, a few bumps here and there is par for the course. He isn’t going to drive his dumper truck to its doom. He wants to use it as a weapon.
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