To guarantee a continuous maize supply for ethanol production, the government has granted permission to cooperatives Nafed and NCCF to vend maize to distilleries at a baseline rate of Rs 2,291 per quintal this year. In the 2023-24 crop year, Nafed and NCCF will procure maize at a minimum support price of Rs 2,090 per quintal and deliver it to distilleries at a mutually agreed-upon rate of Rs 2,291 per quintal, according to a senior official from the food ministry as reported by PTI.
This strategic move is aimed at ensuring distilleries receive a consistent supply of feedstock for ethanol production, the official emphasized. The agriculture ministry’s initial advance estimate forecasts the country’s maize production at 22.48 million tonnes for the 2023-24 crop year (July-June).
With the objective of promoting maize as a viable alternative to sugar for enhancing ethanol production and maintaining an ample supply of the sweetener in the market, the government has taken this step. In last December, the government issued directives instructing sugar mills not to utilize cane juice for ethanol production, anticipating a decline in sugar production in the 2023-24 marketing year (October-September).
In the meantime, oil marketing companies have increased the procurement price of maize-derived ethanol by Rs 5.79 per litre, aiming to stimulate its production and encourage blending with petrol.
