Lok Sabha Question No. 293 (UNSTARRED), answered on 2021-07-20
Subject: Production of Ethanol
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: B. Y. Raghavendra

## MINISTRY  OF COI|SUMER AFFAIRS, FOOD & PUBLTG DISTRIBUTTON

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED OUESTION ilO. 293 TO BE ANSWERED  ON 2OYI{JULY, 2O2{

## PRODUCTION  OF ETHANOL

## 293. SHRI B.Y. RAGHAVENDRA:

Will the lUlinister of  CONSUMER  AFFAIRS, FOOD AND PUBLIC DtsTRlBUTloN  5lTfiifiI err&, ar<-a  gt{  Tr{qfr{, fudtul *ft  be pteased  to state:

- (a)  whether Ethanol could be produced from a variety of feedstocks  like rice, maize and barley apart from sugarcane, if sor the details thereof;
- (b)  whether the feedstock  used for production of ethano! especlally agrobased has helped the farmerc to increase their income, if so, the details thereot
- (c) whether the Government  has launched scheme/ policy for extending financial assistance for enhancement  of ethanol production in the country;
- (d)  whether the Government has allocated a large tonnes of rice recently from Food Goryoration of lndia (FGl) stocks to produce ethanol,  if so, the details thereof and reasons therefo4 and
- (e) the other steps taken/being taken by the Government  to increase  the production  of ethanol and promote its usage in the country?

## ANSWER

TUIINTSTER OF STATE FOR TIINISTRY OF RURAL DEVELOPMENT AI{D col{suMER AFFAIRS,  FOOD & PUBLIG DISTRIBUTIOil (sADHVl iilRAirJAN  JYOTI)

- (a): Ye3 Sir. Apart from sugancane and oth.r sugar containang  mat rials(llke sugar beet, sweet sorghum  etc), ethanol can be produced  from a variety of fecdstocks like agricutturat residues(rico  straw, cotton stalkr com cobsr saw dustt bagasse etc.); starch containing matelials such as malze, cassavar rotten potatoes etc.; damaged food gralns Iike wheat' broken rlce etc; and foodgralns like rice.

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(b):  Use of agro-based  feedstocks for production  ot ethanol and ats supply to Oil lularketlng Companles (OMCa)  at fixed remuneratlve prices has helped the sugar mllls/dlstilleries  to augment the farmey's Income  and also to make tlmely palilncnt of farmers' dues.

(c):  tn order to augment the ethanol productlon  capaclty ln the country' the Govemment notified Interest subventlon scheme(s) from time to timo extendlng financlal assistanee  in the form of lnterast subvention, Racenlly, Govommant has notlfied  a modlfied interest subvontion scheme on 14.1.2021  to encourago entrepreneurs  to tet up molasses based /graln based/dua!'feed dlstillsrles  ol expanslon  of existlng  dlsttlleries  under whach  Government  ls extendlng  lnterest subycntlon @ 60/o or 50o/o ol the rate of lnterest charged by banks whlchever  is lower on the loans avalled by them from banks for a period of fivo yeats Includlng one year moratorium  period.

(d): lndia Impork about 857o of lts crude ol! requirement. Domestlc blo.fuels  Ilke ethanot reduce the nation,s dependence on lmported fossil fuels; in addltion lts use roduces vehlcutar pollutlonr :ncleascs farmerst income, brlngs new investment opportunity  in rural areai thereby helplng to achleve goal of Atmanlrthar  Bharat.

Ethanot ls belng  produced mainly from molasses/sugarcanG and damaged food{rains; but avallability of these fesdstocks as well as ethanol productlon capactty i3 not sufficlent to achieve  blendlng target lixed by the Gov.mment. Therefore,  with a view to lncrease productlon of fuel grade ethano! for blendlng wtth petrot, Gov€mment ts encouraglng  dlstilleries  to  produce ethanol from surplus rico avaalablo  wlth FCI; and maiz..

The FG! rice ls sufficient in stock for food securltyr  purposas and it will continue to rernaln robust as procuremont  of paddy/rlce at iilnlmum  Support Prlce (lllsP) continucs  at  cxpected levets. For the  pedod  of  Decemb.y'2o2ollovembey'202 1, 7E8tl4 MT of FCI rice has been ellocated to dlstlllcrles @ Rs. 20rkg ex.FGl godown for production of ethanol  out of which  227,/a6 frT has been llfted by dlstlllodes  t:ll I 4.7.202'1.

(e): To increase lndlgenous  production/usage of sthanol' steps taken by the Goyemment  include adminlstered  price mechanism for ethanol priclng; opened altemate route for sthanot  productlon; amendment in the lndustrles  (Development & Regutataon) Act, {951;reduced Goods & sorvice Tax (GST) on ethanol meant for Ethanot Blendcd  wlth Petrol (EBP)Programme  from 18o/o lo 5olo; notifled Natlonal poffct/  on Biofuets-2o18;  lncreased the scope of ]ew matorlal for ethanol procuremenq  tnterest subventton scheme for augmentatton  end expanslon of ethano! production capaclh/;  extension of EBP Programmo to whole of lndia except islands of Andaman Nicobar and Lakshadweep  ln Aprll 2o't9; and released notificafion for atlowlng oMGs to btend upto 2O7o ethanol an potrol startlng  {st April,2O23.