National Cooperative Consumers’ Federation of India Limited (NCCF) recently signed MoU with distilleries to supply maize across the country. The MoU was signed between NCCF and distilleries in an event organized at New Delhi on 21st March, 2024.
The event was presided over by Shri Vishal Singh, Chairman of NCCF, with the presence of Ms. Anice Chandra, Managing Director, and other NCCF officials.
Prior to signing the MoU, NCCF officials presented their action plan on uninterrupted supply of maize, its pricing, logistics, transportation expense etc. Distillery and associations’ representatives attended the event and raised various queries which were promptly responded to and resolved by NCCF officials.
A notable concern revolved around the distance between NCCF depots supplying maize and the distilleries, along with associated transportation costs. Officials from the ONDC also introduced their platform’s features and outlined its potential role in the maize procurement process.
Earlier, in a significant move to ensure a consistent maize supply for ethanol production, the government authorized cooperatives NAFED and NCCF to sell maize to distilleries at a baseline rate of Rs 2,291 per quintal for the current 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.
This strategic move is aimed at ensuring distilleries receive a consistent supply of feedstock for ethanol production. 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).
In December 2023, the government directed sugar mills not to use cane juice for ethanol production due to an anticipated decline in sugar production for the 2023-24 sugar marketing year (October-September). Promoting maize as an alternative to sugar not only facilitates increased ethanol production but also guarantees sufficient sweetener supply in the market.
The government is actively pursuing initiatives in a mission-oriented approach to encourage maize cultivation and redirect a greater portion of maize towards ethanol production, aligning with the nation’s fuel-blending agenda. This commitment is clearly demonstrated by the proactive measures being undertaken. Not only will these efforts contribute to meeting the country’s ethanol blending program (EBP) targets, but they will also augment farmers’ incomes.
Earlier the Central Government, earmarked ₹15.46 crore for Indian Institute of Maize Research (IIMR) to help increase corn production in the catchment areas of ethanol industries. IIMR will advance optimal management techniques and hybrid varieties across 15 watershed regions spanning 78 districts in 16 states.
Furthermore, the IIMR scientists have been tasked with intensifying their investigations into climate-resilient high-starch maize hybrids by the financial year 2025-26, with a dedicated budget of ₹5.32 crore allocated. An additional ₹3.73 crore has been designated for expanding the silage or maize feed value chain.
Moreover as a significant stride towards enhancing ethanol production from maize, Oil Marketing Companies (OMCs) have announced an additional incentive of Rs 5.79 per liter (excluding GST) for ethanol derived from maize. This is over and above the the existing procurement rate of Rs 66.07 per liter for maize-based ethanol which comes to the final effective price of Rs 71.86 per liter.
OMCs have also shortlisted identified 107 candidates for establishing production facilities capable of generating 374 crore liters of grain-based ethanol annually from Andhra Pradesh, Goa, Gujarat, Kerala, Odisha, Rajasthan, Telangana, Tamil Nadu, and the Union Territories of Jammu & Kashmir, and Ladakh. This endeavor will also promote maize cultivation as a primary feedstock in these regions.
Given the scarcity of raw materials, maize assumes a pivotal role in meeting the ethanol blending target. It is commendable to witness the government’s proactive measures to enhance ethanol production from maize. The various initiatives not only strengthens ethanol output but also provides advantages to farmers while diminishing our dependence on crude oil imports.
