Latest news with #FairandRemunerativePrice
Mint
6 days ago
- Business
- Mint
Sugar industry seeks ethanol price revision as blending share drops to 28 pc
New Delhi, The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20 per cent, as the sector's contribution to the national ethanol programme has declined sharply from 73 per cent to just 28 per cent. The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories said in a statement. The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE's Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO recently, it said. In 2022-23 season , NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production, enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme. "This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres," it said in a statement. The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price of sugarcane, making ethanol production less profitable for sugar mills. Although there is potential to divert up to 40 lakh tonnes of sugar into ethanol this year, only 32 lakh tonnes are expected to be diverted. "This shortfall is due to the gap between ethanol prices and better returns from selling sugar directly in the domestic market," NFCSF said. As a result, India's ethanol production capacity of 952 crore litres per year including 130 crore litres from multi-feed distilleries is being under-utilised. The Ethanol Blending Programme has emerged as a vital solution to the longstanding issue of surplus sugar stocks under the National Policy on Biofuels – 2018, which set an ambitious target to divert 60 to 70 lakh tonnes of excess sugar annually towards ethanol production. Since the policy's inception, India's ethanol production capacity has expanded significantly from 518 crore litres in 2018 to 1,800 crore litres in 2025. Correspondingly, the ethanol blending rate with petrol has risen sharply from 4.22 per cent to 18.61 per cent as of April 30, 2025. Sugar production has reached 286.9 lakh tonnes as on April 30 of the ongoing 2024-25 season, out of which 30 lakh tonnes have been diverted for ethanol. The industry has additionally suggested evaluating the possibility of blending ethanol in diesel as a future strategy to expand ethanol use across fuel types. NFCSF noted that diverting sugar to ethanol does not reduce the actual production of sugar but helps to manage surplus sugar stocks, stabilise market prices, improve the financial health of sugar mills, and ensure timely payments to farmers. This article was generated from an automated news agency feed without modifications to text.
Time of India
6 days ago
- Business
- Time of India
Sugar industry seeks ethanol price revision as blending share drops to 28% from 73%
The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20%, as the sector's contribution to the national ethanol programme has declined sharply from 73% to just 28%. The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles (FFVs) to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories (NFCSF) said in a statement. The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE's Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO (Prime Minister's Office) recently, it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sasha Meneghel já está irreconhecível após sua recente transformação. 33 Bridges Undo In 2022-23 season (October-September), NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production , enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme. Live Events "This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres," it said in a statement. The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price (FRP) of sugarcane , making ethanol production less profitable for sugar mills . Although there is potential to divert up to 40 lakh tonnes of sugar into ethanol this year, only 32 lakh tonnes are expected to be diverted. "This shortfall is due to the gap between ethanol prices and better returns from selling sugar directly in the domestic market," NFCSF said. As a result, India's ethanol production capacity of 952 crore litres per year -- including 130 crore litres from multi-feed distilleries -- is being under-utilised. The Ethanol Blending Programme (EBP) has emerged as a vital solution to the longstanding issue of surplus sugar stocks under the National Policy on Biofuels - 2018, which set an ambitious target to divert 60 to 70 lakh tonnes (LMT) of excess sugar annually towards ethanol production. Since the policy's inception, India's ethanol production capacity has expanded significantly from 518 crore litres in 2018 to 1,800 crore litres in 2025. Correspondingly, the ethanol blending rate with petrol has risen sharply from 4.22 per cent to 18.61 per cent as of April 30, 2025. Sugar production has reached 286.9 lakh tonnes as on April 30 of the ongoing 2024-25 season, out of which 30 lakh tonnes have been diverted for ethanol. The industry has additionally suggested evaluating the possibility of blending ethanol in diesel as a future strategy to expand ethanol use across fuel types. NFCSF noted that diverting sugar to ethanol does not reduce the actual production of sugar but helps to manage surplus sugar stocks, stabilise market prices, improve the financial health of sugar mills, and ensure timely payments to farmers.
The Hindu
22-05-2025
- Business
- The Hindu
Farmers seek increase in FRP for sugarcane
State Sugarcane Cultivators' Association has sought an increase in Fair and Remunerative Price (FRP) for sugarcane for the current season 2025-26. A delegation of farmers, led by Atahalli Devaraj, secertary of the association, met the authorities in Bengaluru on Wednesday and submitted their demands. Mr. Devaraj told reporters here on Thursday that FRP for sugarcane has been increased by only ₹150 a tonne, which, he said, is unscientific. A review must be conducted, and the price should be fixed at ₹4,500 a tonne as per the CACP (Commission for Agricultural Costs and Prices) report, he added. The association members also reiterated their long-pending demand of fair share of profits accrued from sugarcane by-products, by the sugar mills. In a memorandum submitted to the authorities, the association said the government has fixed an additional price of ₹150 a tonne for sugarcane by-products. But the sugar mills were yet to pay the amount due for the previous year (2024-25), and steps should be taken to ensure that the amount was released to the farmers immediately, Mr. Devaraj said. The association claimed that there was an outstanding amount of ₹950 crore payable to the sugarcane farmers. On the issue of computing the rates, the farmers said that FRP should be the price at the field and pointed out that sugar mills tend to recover transportation charges from field to factories. This, Mr. Devaraj said, should be stopped. The association pointed out that sugar factories deduct 25% of payment for sugarcane crop that was burnt due to fire and wanted the government to step in and end this practice. Seeking transparency in weighing, the farmers have sought the installation of weighing machine in front of sugar mills. Besides, there is an 8% deduction by way of wastage during harvesting and this should also be stopped, according to the association. The delegation, which met senior officials of the Directorate of Sugarcane Development and Sugar, also discussed other issues faced by farmers and urged the authorities to address their demands.
Mint
01-05-2025
- Business
- Mint
Govt mandates digital reporting for sugar mills, regulates khandsari units
The government has mandated sugar mills to digitally report production and sales, ending manual submissions, and brought larger khandsari units under its regulatory umbrella, in a bid for transparency and better farmer pay, a new order said Thursday. Under the new Sugar (Control) Order, 2025, the government has brought khandsari units with a crushing capacity above 500 tonnes per day (500 TCD) under regulatory oversight for the first time. The shift to digital reporting is expected to improve transparency, enhance efficiency, reduce data leakages, and enable real-time monitoring of sugar production and movement. Bringing khandsari units under regulation will also help ensure that farmers supplying to these units receive the government-fixed Fair and Remunerative Price (FRP) for sugarcane. Khandsari units are traditional, small-scale sugar processing units that make unrefined sugar from sugarcane using simple machinery. The central government has brought amendments to the near six-decade-old Sugar (Control) Order, 1966, to bring transparency, efficiency and accountability to the sugar ecosystem. "The objective of the Sugar (Control) Order, 2025 is a step toward building a more efficient, transparent, and accountable sugar ecosystem, fostering both domestic stability and global competitiveness," said Sanjeev Chopra, secretary, department of food and public distribution in the ministry of consumer affairs, food and public distribution. According to the order, the mills have to share the information pertaining to production and sales in digital forms with the government. The integration of systems will enhance efficiency, provide real-time data, reduce data leakages and redundancies. The process is already going on and more than 450 sugar mills are already integrated with the Department of Food and Public Distribution (DFPD) portal. Further, GSTN (goods and services tax network) data related to sale of sugar by sugar mills are also integrated with the portal. "This revision aims to simplify and streamline the regulatory framework governing the sugar sector in line with current industry dynamics and technological advancements," Chopra said. Also, khandsari sugar makers with 500 TCD will now be regulated under the Sugar Control Order to ensure payment of fair and remunerative prices to cane farmers and help in accurate estimation of sugar production. Currently unregulated, the khandsari sugar industry has seen rising production. Nationally, there are 373 khandsari units (with total capacity of about 95,000 TCD) working in the country. Out of the total, 66 units have more than 500 TCD capacity. The total capacity of these units is about 55,200 TCD. "The amended order will be notified either today or tomorrow in the gazette," he added. The ministry has also included raw sugar in the amended control order to prevent it from being marketed under misleading names like khandsari or organic sugar. "This will help the government to regulate the diversion of sugar to ensure sufficient availability for domestic consumption," the secretary said. Indian Sugar and Bio-Energy Manufacturers Association (ISMA) estimates that total sugar production in the country will be 26.4 million tonnes in 2024-25, less than the 31.99 million tonnes produced in 2023-24. Notably, around 3.5 million tonnes of sugar is expected to be diverted towards ethanol production this year, against last year's diversion of 2.15 million tonnes. Despite the dip in production, ISMA affirmed the stable and sufficient availability of sugar across the country for the ongoing 2024-25 Sugar Season, dispelling any concerns about potential shortages and supply constraints. The Secretary said that purchases of wheat during the Rabi marketing season 2025-26 is going on smoothly in the major procuring states across the country. Against an estimated target of 31.2 million tonnes fixed for procurement of wheat during 2025-26 season, 25.63 million tonnes of wheat has already been procured so far. The quantity of wheat procured till 30 April this year has already surpassed last year's total procurement of 20.54 million tonnes on the same date, showing an increase of 24.78 %. Chopra said that the department of food and public distribution is now working on smart storage solutions by integrating smart warehousing technologies by creating a seamless digital monitoring ecosystem that includes CCTV surveillance and IoT (Internet of Things) sensors, monitoring key parameters such as CO₂ & Phosphine levels, fire hazards, humidity, unauthorized entry and temperature in real time, ensuring security and efficiency in food grain storage. Already, seven warehouses of the Central Warehousing Corporation have been made smart. The government intends to convert 226 warehouse into smart warehouses by November this year. Further, a total of around 2,278 warehouses, including those owned by Food Corp. of India and Central Warehousing Corporation, and those hired from state agencies and private operators will be onboarded in this digital initiative. First Published: 1 May 2025, 09:46 PM IST
United News of India
30-04-2025
- Business
- United News of India
Prosperity, progress of farmers PM Modi's top priority: Yogi
Lucknow, Apr 30 (UNI) Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday expressed his gratitude to Prime Minister Narendra Modi for the historic decision taken in the interest of sugarcane farmers. Taking to X, the CM wrote, "The prosperity and progress of farmer brothers are the top priority of Prime Minister Narendra Modi. In this series, under the illustrious leadership of the Prime Minister, the Union Cabinet has today approved the Fair and Remunerative Price (FRP) of Rs 355 per quintal for the 2025-26 (October-September) season." He said, "This decision will become the foundation for economic empowerment and self-reliance in the lives of 5 crore sugarcane farmers as well as 5 lakh workers." It may be noted that the Cabinet Committee on Economic Affairs in its meeting, chaired by Prime Minister Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane at Rs 355 per quintal for the 2025-26 (October-September) season, keeping in mind the interests of sugarcane farmers. Its basic recovery rate will be 10.25 percent in which a premium of Rs 3.46 per quintal will be provided for every 0.1 percent increase in recovery over and above 10.25 percent and for every 0.1 percent decrease in recovery, the FRP will be reduced by Rs 3.46 per quintal. UNI AB SSP
