07/11/2019 - Government Policies | Mainstorming

IAS Parliament 5 years

KEY POINTS

The ministry clarified that the proposals to undertake additional ethanol production from B-heavy molasses/sugarcane juice/sugar syrup/sugar would be considered under the provisions of the EIA (Environmental Impact Assessment) notification, 2006, by an expert appraisal committee for granting environmental clearance.

What are ethanol and molasses

· Ethanol, or ethyl alcohol, is a liquid that has several uses.

· At 95% purity, it is called rectified spirit and is used as the intoxicating ingredient in alcoholic beverages.

· At 99%-plus purity, ethanol is used for blending with petrol.

· Both products are made from molasses, a byproduct of sugar manufacturing.

Why focus on more ethanol

· Mills currently have all-time-high stocks of sugar, and they have been at loggerheads with farmers over non-payment of dues.

· Mill owners insist that the reason behind their woes is excess production of sugar and fall in its price.

· Under the circumstances, ethanol is the only real saviour — both for mills and cane growers.

· The government approved an increase in the price of ethanol to be procured by public sector oil marketing companies from sugar mills for blending with petrol for the 2019-20 supply year.

· The Cabinet Committee on Economic Affairs also allowed conversion of old sugar into ethanol, which again is expected to help mills deal with the current overproduction in the sweetener and make timely payments to farmers for the cane delivered by them.

· Ethanol production has been additionally facilitated with the government mandating 10% blending of petrol with ethanol.