Maize is in high demand for ethanol production. But don’t procure it at MSP
More maize is needed to produce ethanol. But it can raise price of eggs and chicken. Key Points
ThePrintNo proposal to allow further diversion of sugar for ethanol production: Food Secy
Food Secretary Sanjeev Chopra has said that there are no plans to permit additional diversion of sugar for ethanol production during the current 2023-24 supply year. In December of the previous year, the government imposed a cap on sugar diversion at 17 lakh tonnes for the current supply year (November-October). Additionally, it authorized the utilization of both cane juice and B-heavy molasses within the overall cap for ethanol production. Key Points
Economic TimesAssam’s bamboo-based refinery generates interest among private investors from varied sectors
The Assam Bio Refinery, a joint venture between Numaligarh Refinery Ltd, Fortum, and Chempolis, plans to manufacture ethanol from bamboo starting in March. The refinery has generated interest from energy sector investors, and the company expects returns on investment to increase from value-added products. India is promoting the production of ethanol from non-food biomass to address shortages of food sources like sugar, maize, and rice. Key Points
Economic TimesBan on sugar for ethanol: Centre files caveats in High Courts of Bombay and Karnataka fearing stay order
Several sugar firms have approached various courts seeking a stay on the Centre's December 7 order prohibiting mills from producing ethanol from sugarcane juice in the 2023-24 season. In the absence of a caveat, the courts can pass a stay order without hearing the government, explained the official cited above. The Centre issued the ban to keep a check on rising sugar prices in the domestic market despite restrictions on exports due to lower sugarcane yield in main producer states of Maharashtra and Karnataka. Key Points
Economic TimesTraders look to buy maize from Myanmar to produce ethanol
As sugar prices started to rise due to estimates of lower production of sugarcane in Maharashtra and Karnataka, the Centre capped diversion of sugarcane juice for ethanol at 1.7 million tonnes in the ethanol supply year of November-October 2024. Sugar production till end of December in the current sugar season (2023-24) reached 11.18 million tonnes compared with 12.12 million tonnes for the same period in the previous year, according to Indian Sugar Mills Association, the industry body of private sugar mills, which has now rebranded itself to Indian Sugar and Bio-energy Manufacturers Association. Key Points
Economic TimesCautious optimism in US ethanol markets for 2024 following near-3-year lows at year-end
New Delhi [India], January 4 (ANI): The US ethanol industry is cautiously looking towards 2024 after grappling with near three-year lows at the end of 2023. The sector anticipates crucial policy support to stimulate growth, with various factors influencing the market dynamics. Despite a decline in values in the fourth quarter, US ethanol producers experienced […] Key Points
ThePrintOil cos offer Rs 6.87/litre incentive on ethanol made from molasses
State-owned fuel retailers have offered Rs 6.87 per litre incentive on ethanol made from C-heavy molasses to shore up supplies. Key Points
The Tribune IndiaGovernment to allow diversion of 1.7 million tonnes of sugar for ethanol production
The Indian government is likely to permit the diversion of 1.7 million tonnes of sugar for ethanol production, just days after instructing sugar mills and distilleries to cease using sugarcane juice and syrup for ethanol production in the 2023-24 supply year. The directive aimed to address concerns about lower sugarcane production due to adverse weather conditions and rising sugar prices in the domestic market. Key Points
Economic Timesethanol blending rate to fall to 10%: CRISIL
The ethanol blending rate in India for the ethanol supply year 2023-24 (November 2023 to October 2024) is expected to drop to less than 10%, down from 12% in the previous year, according to a report by CRISIL. This decline is attributed to the government's decision to restrict the use of sugarcane juice and sugar syrup for ethanol production due to lower sugarcane production caused by erratic rains. Key Points
Economic TimesIndia's sugar production to increase by 2.5 million tonne in 2023-24: Crisil
CRISIL has expected a 2.5 million-tonne increase in India's sugar production in 2023-24 due to a ban on using sugarcane juice for ethanol. The government's move immediately stops ethanol production from cane juice but permits it from B and C heavy molasses. With sugarcane supply issues, sugar mills face a choice between sugar and ethanol. Key Points
Economic Times
ISMA demands increase in price of ethanol made from B & C heavy molasses
The Indian Sugar Mills Association (ISMA) urges government action following the ban on using sugarcane juice for ethanol production. To offset mill losses and support farmers affected by the ban, ISMA proposes compensatory price increases for ethanol from B and C heavy molasses. This measure aims to ensure cash flow for mills to meet financial commitments to farmers. Additionally, ISMA suggests converting contracted/cancelled juice to B-heavy molasses for ethanol, minimizing disruption to the ethanol blending program and lessening the impact on sugar production. Key Points
Economic TimesIndia curbs use of sugar for ethanol in 2023-24
The central government on Thursday banned diversion of sugar for ethanol manufacturing with immediate effect in ethanol supply year 2022-23. However, the supply of ethanol from existing offers received by the Oil Marketing Companies (OMCs) from B Heavy molasses will continue, it said. Key Points
Economic TimesInfra development is key for making India a $5 trillion economy: Nitin Gadkari
Without water, power, transport and communication, we will not get industry and capital investment. Without industry and capital investment, we cannot create employment potential. And without employment potential, we cannot eradicate poverty. That is very important. Key Points
Economic TimesSugar industry is now seen as a source of green fuel: Vijendra Singh, executive director and deputy chief
Sugar sector has now transformed into a green energy sector where ethanol is playing a major role. ethanol is a green fuel and considering the reduced carbon footprint and sustainability factor associated with it is leading the sugar industry to be re-rated by investors and other stakeholders, says Vijendra Singh, executive director and deputy chief executive officer, Shree Renuka Sugars. Key Points
Economic TimesAdding sweetness to portfolio; 5 stocks from sugar industry with upside potential of up to 35%
Recent spike in prices of sugar futures in the global commodity markets have brought back focus on the sugar sector. However, in the case of India, the sugar sector has been going through a transformation much before that and the bottom lines are becoming better for a large majority of companies. All thanks to mixing ethanol with other fuels. As the underlying macro changes sugar companies are making a comeback on the analyst list and some of them have seen an increased participation by institutional investors. Key Points
Economic Times
Prioritising grain-based ethanol in Bihar and MP has increased losses of molasses-based ethanol manufactur
Oil marketing companies (OMCs) have signed long-term purchase agreements with the new grain-based distilleries in Bihar and MP. According to ISMA, the preference given to grain-based distilleries in these states has resulted in making ethanol supplies non-viable for the sugar-based distilleries from these two states. Key Points
Economic Times3 stocks from sugar industry with upside potential of up to 33%
The Indian sugar sector has gone through a transformation. From being just a provider of an essential commodity, to being the largest provider of ethanol. Some companies have shifted their focus and have gone through restructuring by hiving off their ethanol unit to focus on ethanol only. As the underlying macro changes sugar companies are making a comeback on the analyst list. Key Points
Economic TimesIndia's ethanol program will cap future sugar exports, says research firm BMI
India is expected to play a smaller role in the global sugar export market due to its expanding ethanol program, according to a report by research firm BMI. The country's goal of achieving increased ethanol blending in gasoline, which will reduce carbon emissions, is leading to the development of additional capacity to produce ethanol in India. Key Points
Economic TimesVehicles that can run on 100% ethanol coming soon: Nitin Gadkari
Union minister Nitin Gadkari on Sunday said new vehicles that run entirely on ethanol will be introduced. Speaking at an event in Nagpur, the Minister of Road Transport and Highways recalled he recently met the chairman of Mercedes Benz company that launched an electric vehicle. Key Points
Economic Times5 stocks from sugar industry with upside potential of up to 43%
The Indian sugar sector has gone through a transformation. From being just a provider of an essential commodity, to being the largest provider of ethanol. Some companies have shifted their focus and have gone through restructuring by hiving off their ethanol unit to focus on ethanol only. As the underlying macro changes sugar companies are making a comeback on the analyst list. Key Points
Economic Times
National Technology Day 2023: Changing climate, fueling opportunities
Road transport is the most prevalent mode that impacts the lives of the common citizens. Currently the supply of raw material for ethanol production comes from sugar factories. Key Points
FinancialexpressHT G20 Agenda: Global Biofuel Alliance to be launched in Goa
A Global Biofuels Alliance is set to be announced on July 22 during the G20 Clean Energy Ministerial in Goa. The alliance aims to enhance global collaboration and cooperation for the adoption of biofuels and identify best practices for their development and deployment. The alliance is being launched under the G20 Presidency of India with support from Brazil and the US. India has also advanced its deadline for achieving 20% ethanol blending from 2030 to 2025. The government is also considering a policy on 1% blended aviation fuel based on previous experience. | Latest News India Key Points
Hindustan TimesMonsoon woes: Sugarcane shortage likely to dilute ethanol blending
Erratic and uneven rainfall this year has affected sugarcane and rice cultivation in the country, which means less will be available for the distilleries. State-run Food Corporation of India (FCI) has already stopped supply of rice for ethanol production owing to an expected shortfall of rice for general consumption. Key Points
Economic TimesToyota working on clean tech for Indian market: Masakazu Yoshimura
The company, which operates in a joint venture with the Kirloskar Group, has started testing a flex fuel strong hybrid version of multi-purpose vehicle Hycross in India. “This is a prototype which we are testing for the first time globally for the market in India. It can take ethanol as well as with the strong hybrid and can have a better fuel efficiency of about 40-50% (compared to gasoline),” said Yoshimura. Key Points
Economic TimesCurbs may be eased on sugar use for ethanol production
The government's decision came amid concerns about a fall in the production of sugarcane due to erratic weather conditions, and rising prices of the sweetener in the domestic market. The all India average consumer wholesale price of sugar was ₹4,142.21 per quintal on December 14, compared with ₹3,934.39 on the same day last year, according to government data. Key Points
Economic Times
Govt asks sugar mills, distilleries to not use sugarcane juice, sugar syrup for ethanol
The Indian government has directed sugar mills and distilleries to refrain from using sugarcane juice or sugar syrup for ethanol production in the ethanol supply year 2023-24. Existing offers received by oil marketing companies (OMCs) for ethanol from B-Heavy molasses will continue. The move is seen as an effort to ensure sufficient sugar supplies in the local market. Key Points
Economic TimesNifty may touch 23,000 over next 1 year; largecaps to dominate: Dipan Mehta
“Across the board, I do not think there is any sector which is highly overvalued per se. But in two to three sectors, especially the external facing ones, like chemical and software, an investor needs to be a bit cautious. I would like to remain underweight in these two industries.” Key Points
Economic TimesHPCL launches pilot study on E27 and ethanol-blended diesel
New Delhi [India], June 9 (ANI): Hindustan Petroleum Corporation Limited launched a pilot study on vehicles using E27 fuel and ethanol-blended diesel. E27 fuel is a blend of 27 per cent ethanol and fossil-based fuel. The oil marketing company became the first in India to initiate such a research program, in line with the “Roadmap […] Key Points
ThePrintMaize prices surge, procurement for ethanol may be hit
Government's maize procurement for ethanol impacts prices, leading to concerns over reduced state procurement. Farmers may opt for private traders due to high prices. India promotes maize as a sugar alternative for ethanol production amid declining sugar production. Key Points
Economic TimesDeadline to levy additional duty on unblended diesel deferred
The Indian government has extended the deadline for implementing an additional ₹2 per litre tax on unblended diesel to April 1, 2025. The tax, aimed at promoting biofuels and reducing crude imports, was initially announced in the FY23 budget. The move aligns with India's commitment to enhance domestic crude production, increase ethanol blending, and focus on renewables to cut crude imports by 10% to 67% by 2025. Key Points
Economic Times
Maize prices surge 20% in India as government promotes ethanol production
Maize prices in India have surged by 20% in the first two weeks of January compared to October due to increased demand after the government's plans to procure the commodity for ethanol production. This move comes as restrictions are placed on using sugar for biofuel production. The prices are expected to stay firm in the coming months, and there could even be a shortage of the commodity. Key Points
Economic TimesIndia state fuel retailers raise maize ethanol purchase price: Reports
Indian state fuel retailers have increased the purchase price of maize-based ethanol by 5.79 rupees per litre to 71.86 rupees ($0.8635) per litre to boost ethanol production and ensure market supply. The move follows India's directive to avoid using cane juice for ethanol production due to expected declines in sugar production. Key Points
Economic TimesE20 fuel outlets will have pan-India presence by 2025, assures oil minister Hardeep Singh Puri
India's oil minister Hardeep Singh Puri on Friday said that the entire country will have special fuel stations retailing E20 petrol, drawing confidence from the faster rollout of such fuel stations. E20 fuel is a blend of 20 per cent ethanol with petrol. Ahead of the targeted launch in April, the first E20 outlet was opened on February 8 this year. Key Points
Economic TimesFrom Peels to Fuel: Potatoes may soon quench thirst of your car
The Central Potato Research Institute plans to establish a pilot plant to convert potato waste into ethanol. India, the world's second-largest potato producer, faces significant post-harvest losses. The plant will be set up in high-production regions like Uttar Pradesh or West Bengal, using potato waste and substandard potatoes for ethanol production. Key Points
Economic TimesAmit Shah highlights substantial growth in sugarcane cultivation, ethanol production, critical for farm, energy sectors
New Delhi [India], August 10 (ANI): Union Home Minister Amit Shah on Saturday highlighted the substantial growth in sugarcane cultivation and production and ethanol production, which are critical milestones in the nation’s agricultural and energy sectors. Shah was addressing the Sugar Conclave and National Efficiency Award 2022-23 ceremony in New Delhi on Saturday. He lauded […] Key Points
ThePrint
India mulls curbing ethanol production to fight sugar shortages
The proposal, which would help ease local sugar shortages if approved, sent futures plunging as much as 7.9% in New York on Wednesday, the biggest decline in 10 months. Key Points
mintPoultry sector to seek reduction in import duty on maize & soyabean
Broken rice and maize are the main components of poultry feed. The industry fears that the prices of maize and broken rice would spike in the coming months as the diversion of these two raw materials for ethanol is expected to increase after the ban on use of sugarcane juice for ethanol. Key Points
Economic TimesIndia mulls imposing 25% duty on molasses exports
The Indian government is considering imposing a 25% duty on the export of molasses due to an expected decline in sugar production. The move aims to increase the availability of molasses for domestic distilleries, helping them meet the government's ethanol blending target. India experienced a dry August, causing damage to the sugarcane crop in key cane-producing states. Key Points
Economic TimesBajaj Hindusthan plans to infuse fresh equity into business: Chairman Kushagra Bajaj
Bajaj Hindusthan Sugar, one of India's largest sugar and ethanol producers, is looking to turn the corner by putting its debt issues behind. In an interview, chairman Kushagra Bajaj told ET's Deborshi Chaki about the group's plans to infuse fresh equity into the business, which will entail zero haircut for the lenders. Key Points
Economic TimesHigher domestic sugar prices and increasing sales of ethanol to help offset sugarcane cost: CRISIL
CRISIL Ratings predicts that higher domestic sugar prices and greater sales of ethanol will balance the increase in sugarcane costs and lowered exports in FY2024 leading to steady operating profitability for integrated sugar mills. Integrated sugar mills are those with sugar, distillery, and power co-generation facilities. The prices for these commodities are regulated by the government. Key Points
Economic Times
ISMA pegs 9 pc fall in gross sugar output for 2023-24; says sufficient to meet local demand
In August, ISMA had estimated gross sugar production at 369 lakh tonnes, while the net sugar output was projected at 328 lakh tonnes after a diversion of 41 lakh tonnes for ethanol. With India's domestic consumption average of 278.5 lac tons, the production estimates assure sufficient sugar for domestic consumption, ISMA said. Key Points
Economic TimesAverage cane crushing days of the sugar mills have decreased by 20% increasing production costs, says mini
Gadkari said that in the last 10 years, the sugar mills have generated revenue of more than 940 billions Rupees from the sale of ethanol. The production of ethanol has led to reduction in import of crude oil, which has resulted in saving of valuable foreign exchange for India. In the last year only India has saved about 243 billion Rupees of foreign exchange and improved Indias energy security scenario, he said. Key Points
Economic TimesSugar, FMCG sectors can be part of the portfolio now: Anshul Saigal
Kotak Mahindra AMC's CIO, Anshul Saigal, believes that the sugar industry is attractively poised due to rising prices and improved industry structure from the ethanol policy. However, the agrarian stocks like UPL, Rallis, and Tata Chemicals have consistently failed to deliver despite their potential. Saigal suggests splitting the sector into various buckets, such as agrochemicals, food-related sectors, and those that benefit from food price increases, and investing in the sectors that suit an investor's needs at a given time. Key Points
Economic Times