Around a dozen cooperative sugar mills running molasses-based distilleries have applied to convert their ethanol plants to use more widely available grains like maize and damaged food grains. This shift is aimed at enabling year-round ethanol production and improving operational efficiency, reports Mint.
Currently, these distilleries rely on molasses, a by-product of sugar production from sugarcane. But with the sugarcane crushing season lasting only 4 to 5 months, molasses-based ethanol production is limited to a short window each year. Moving to grain-based feedstock would allow the plants to operate throughout the year.
Out of India’s 269 cooperative sugar mills, 93 operate molasses-based distilleries. “Out of these 93 distilleries… 10 of them applied for conversion of existing sugarcane-based (molasses) feedstock ethanol plants to multi-feedstock-based plants,” said Prakash Naiknavare, Managing Director of the National Federation of Cooperative Sugar Factories Ltd.
Eight of these distilleries are in Maharashtra, one of India’s leading sugarcane-producing states, and the other two are in Gujarat and Karnataka.
The federation is currently working on the process and guidelines to help more cooperative sugar mills transition from molasses to multi-feedstock ethanol production.
To support the transition of cooperative sugar mills to year-round ethanol production, the Department of Food & Public Distribution, in March, introduced a scheme under the modified Ethanol Interest Subvention Scheme. This initiative aims to help CSMs convert their existing sugarcane-based ethanol plants into multi-feedstock units capable of using alternative feedstocks such as maize and damaged food grains (DFG).
Under the modified scheme, the central government provides interest subvention at a rate of 6% per annum or 50% of the interest charged by banks and financial institutions—whichever is lower—on loans extended for plant conversion. This financial support is available for a period of five years, including a one-year moratorium on loan repayment.
Currently, the sugarcane crushing season lasts only 4–5 months each year, which limits the operational timeframe of sugar mills and impacts their overall efficiency and productivity. By enabling the use of alternative feedstocks like maize and DFG, the scheme ensures that ethanol plants in cooperative sugar mills can function throughout the year.
Converting to multi-feedstock operations not only allows ethanol production to continue when sugar-based feedstocks are unavailable but also enhances the plants’ overall efficiency and financial sustainability. This strategic shift is expected to significantly improve the viability and productivity of cooperative ethanol units.
