The government should allow a greater diversion of sugar for ethanol; 7 million tons of export: NFCSF

Source: https://newsjizz.in


New Delhi, August 28 () Given that the sugar supply is expected to be at a record level in the next year, the NFCSF industry body urged the government on Wednesday to allow the diversion of more sugar for ethanol production and at least 7 million tons of export.

The country is likely to have a total supply of 43 million tons of sugar during the 2019-10 commercial campaign (October-September), taking into account 14.5 million tons of remaining stocks and a probable production of 28.5 million of tons next year, National Federation of Sugar Cooperatives Factories (NFCSF) said.

Next year will be the most challenging. Total sugar availability would be 43 million tons, setting a new record in the history of the sugar sector in India, said NFCSFL president Dilip Walse Patil at its 60th annual general body meeting. of the cooperative.

There is a great need to allow the diversion of the greatest amount of sugar for the manufacture of ethanol and allow the export of at least 7 million tons of the sweetener, he said, and he hoped that the government will soon present strong policies in this regard.

With respect to exports, Patil urged the government to announce the export policy as soon as possible and to continue providing fiscal support compatible with the WTO.

It also demanded the early creation of a price stabilization fund to help the industry in times of crisis.

Patil also asked the government to calculate all financial costs, including depreciation in the restructuring of the minimum price of sugar support, to match it with the average cost of production.

Once we do this, the current financial stress that the country’s sugar sector is going through will be diluted and pave the way for the creation of a financially secure sugar industry in the coming years, he said. The sector is in trouble due to the production of surplus sugar and the situation of depressed prices. The mills cannot pay the sugarcane producers due to the financial crisis. However, the government intervened and took several measures to ease its burden and ensure that farmers’ payments are made on time. LUX BAL

Aid package for mills to export sugar likely to get nod as industry struggles with soaring stocks

Source: https://www.sugarnews.in


Times of India – 28 August 2019, NEW DELHI: The Union Cabinet on Wednesday is likely to approve a mega assistance package for sugar mills to export nearly 8 million tonne during 2019-20 sugar year starting October as the industry struggles to deal with a huge glut of the sweetener. Sources said the package could be of approximately Rs 9,000 crore to the sugar mills which will get the financial assistance under the scheme.

TOI has learnt that the central assistance could be around Rs 9.50/kg to the mills to make the export viable. Currently, the global price of white sugar is about Rs 20 per kg while the average production cost is around Rs 33 and the government has set Rs 31 as the minimum price of sugar at factory gate. Industry sources said the central assistance will be of huge help to the industry to unload the excess stock it has accumulated.

Failure to reduce the stock will impact the sugar mills capacity to pay arrears. The current arrears of sugarcane growers is around Rs 13,000 crore. “We need to bring it down quickly before the onset of next sugar season in November when fresh sugarcane will start arriving at the factory gates,” said an official.

Sugar industry insiders said the opening balance of sugar in November is likely to be nearly 14 million tonnes, which is about 9 million tonnes more than what is required. “So, we need to get rid of that extra stock, else it will be a bigger crisis next year when fresh sugar will be produced,” said one of the sugar mill owners.

Last year, the government had announced a package for export of 5 million tonnes of sugar and till now about 3.8 million tonnes have been exported by the millers. “We have another month left and let’s hope we will touch 4 million tonnes,” said an industry player.

Thousands of Sugarcane Farmers Launch Agitation Against Haryana Govt over Non-payment of Dues

Source: https://www.newsclick.in


The farmers are currently protesting by standing in the overflowing Begna river to demand attention of the government.

Five thousand sugarcane farmers in Haryana are currently bearing the brunt of high sugarcane production and plummeting wholesale prices. The farmers from across 400 villages are currently protesting by holding multiple agitations across the state. In Ambala’s Naraingarh area, the farmers made use of dramaturgy to attract the attention of the Manohar Lal Khattar government. A shirtless procession was taken out on Tuesday to build pressure on the state and the privately owned sugarcane mills to provide the farmers with their due arrears.

The farmers had also organised a sit-in from August 22, inside the waters of Begna river for five days, which is still going on.

Speaking to NewsClick, Inderjeet of the All India Kisan Sabha (AIKS) from Haryana, said, “This is a perpetual problem that crops up every season. The current protest is taking place in Yamuna Nagar area, the government has not bothered to respond to the farmers and they have had to use different ways to get the attention of authorities, be it marching shirtless or climbing up buildings.”

A Cabinet meeting is also scheduled to take place on August 30 over the issue. Currently, the dues to be paid to the farmers are estimated to be about Rs. 110-150 crores. However, activists on the ground believe that this amount is only the tip of the iceberg.

The government had promised sops to the farmers prior to the elections. Following high sugar production and plummeting wholesale prices, dues to be paid to the sugarcane farmers by the mills are piling up, worsening the crisis of the sugarcane farmers. India’s sugar production witnessed a steep hike of 6.7% till December 31, 2018. Activists on the ground believe that the worst is yet to come, given the high acreage of crop planting this time.

The payment crisis can worsen the farm distress, as the farmers’ incomes have been stressed following fluctuating prices of horticulture crops. The government is merely compounding the problem by refusing to link sugarcane pricing to the price of sugar.

The National Highway Authority of India (NHAI) offered just two and a half times than that of collector rates in lieu of acquisition of farmers’ land taken away for the construction of highways, the farmers grappling with the agrarian distress are demanding that it should be four times than of collector rates keeping in view the provisions of the Land Acquisition Act of 2013.

Global Sugar Beet Market 2019 Structure, Industry Inspection, and Forecast 2024

Source: http://marketresearchtime.com


Global Sugar Beet Market Research Report is an in-depth and a professional document 2019:

The report titled Global Sugar Beet Market 2019 by Manufacturers, Countries, Type and Application, Forecast to 2024the present scenario of the Sugar Beet  market and its market dynamics to provide an unbiased and detailed analysis of the global market size and share. It delivers a 5 year per-historic and forecast covering 2019 to 2024 year for the market. It includes an analysis of the on-going trends, opportunities/ high growth areas,market drivers,market growth enablers, restraints to help stakeholders to align market strategies. They can consider statistics, tables & figures represented in this report for planning their strategy which lead to the success of their organization. The leading companies and several other prominent companies operating in the market are profiled and analyzed in the report.

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Key application areas of Sugar Beet  are also assessed on the basis of each vendor’s performance. The report categorizes themarket size (value & volume) by key players, type, application, and region. It further examines the investment environment, industry development, industry capacity, structure, industry development,marketing channels, supply and demand, and key industry participants.

Key companies profiled in the market report are :  

Geographically, this report studies the key regions, focuses on product sales, value,market share and growth opportunity in these regions, covering

  • North America (United States, Canada and Mexico)
  • Europe (Germany, France, UK, Russia and Italy)
  • Asia-Pacific (China, Japan, Korea, India and Southeast Asia)
  • South America (Brazil, Argentina, Colombia etc.)
  • Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)

Market Report Highlights:

  • The report provides a detailed analysis of current and future market trends to identify the investment opportunities market forecasts till 2024.
  • Key Sugar Beet  market trends across the business segments, regions and countries
  • Key developments and strategies observed in the market
  • In-depth company profiles of key players and upcoming prominent players
  • Key market dynamics such as drivers, restraints, opportunities and other trends
  • Market opportunities and recommendations for new investments

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Previous data and current conditions provided in the report offer prediction in the production, sales, revenues, growth rate,market share, as well as the upcoming trends in the forecast period. For complete understanding, the research study presents market segmentation and regional market analysis in the country-level market. In addition, product portfolio, the quantity of production, upstream raw material, downstream demand analysis, and the financial status are demonstrated in the report. The growth factors of the worldwide market based on end-users are added in the report. Moreover, the report covers forecast share, recent R&D development, comprehensive data about the analyst and expert opinion from trustworthy sources. In the end, for feasibility, the Sugar Beet  market makes some great proposals for the latest project of industry.

There are 15 Chapters to deeply display the global Sugar Beet market.

Chapter 1: to describe Sugar Beet  Introduction, product scope, market overview, market opportunities, market risk, market driving force;

Chapter 2: to analyze the top manufacturers of Sugar Beet , with sales, revenue, and price of Sugar Beet , in 2016 and 2017;

Chapter 3: to display the competitive situation among the top manufacturers, with sales, revenue and market share in 2016 and 2017;

Chapter 4: to show the global market by regions, with sales, revenue and market share of Sugar Beet , for each region, from 2013 to 2019;

Chapter 5, 6, 7, 8 and 9: to analyze the market by countries, by type, by application and by manufacturers, with sales, revenue and market share by key countries in these regions;

Chapter 10 and 11: to show the market by type and application, with sales market share and growth rate by type, application, from 2013 to 2019;

Chapter 12: Sugar Beet  market forecast, by regions, type and application, with sales and revenue, from 2019 to 2024;

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Commodity prices still high despite inflation dropping to five-month low

Source: https://www.the-star.co.ke


While the cost of items on the food basket declined marginally in August compared to July, Kenyans are still paying more compared to the same period last year.

In it’s monthly review, the Kenya National Bureau of Statistics yesterday announced monthly inflation dropped to 5 per cent in August compared to 6.27 per cent in July.

“This decline was mainly attributed to favourable weather conditions and follows a trend that has been observed over the last five months,” KNBS said in a statement.

In August, the prices of significant food items including sukuma wiki (kales), potatoes, cabbages, carrots, tomatoes and maize grain loose decreased by 8.01, 7.81, 6.78, 6.01, 4.89 and 2.80 per cent, respectively.

“Decrease in prices of these commodities outweighed the observed increase in the cost of other foodstuffs, thereby causing a decrease in the food index,” the statistician said.

However, compared to last August when monthly inflation stood at 4.04 per cent, this month’s commodity prices were much higher.

A kilogramme of tomatoes rose the highest year on year, increasing 23.72 per cent to Sh72.49.

This was followed by kerosene, commonly used by poor households for lighting and cooking, which increased by 22.01 per cent to Sh104.80 compared to the same month last year.

Other notable increases were a 2kg bag of sifted maize which increased to sh119.89, a Sh20.54 increase compared to last August, while a kilo of carrots retailed at Sh72.49, a 18.47 per cent increase.

A kilogramme of maize grain also increased by Sh5.19 per kilogramme to retail at Sh47.58.

On the other hand, the price of sugar reported the most significant decrease, dropping by over Sh40 to sell at Sh107.22. A kilogramme of sukuma wiki (kale) also dropped 17.9 per cent to Sh37.19 compared to last August.

KNBS data shows the housing, water, electricity, gas and other fuels’ index, decreased by 0.10 percentage points in August, mainly as a result of a decrease in prices of some cooking fuels.

“The cost of a 13 kg cylinder of Liquefied Petroleum Gas (LPG) for instance, decreased by 0.98 percentage points from Sh2,171.47 in July to Sh2,150.27 in August,” KNBS said.

The transport index also reported a decrease albeit marginal due to the reduction in pump prices of diesel and petrol over the review period.

Govt. approves fixing higher ethanol price for sugar season 2019-20

Source: https://www.chinimandi.com


The Cabinet on Tuesday approved Mechanism revision of ethanol price for supply to Public Sector Oil Marketing Companies for procurement of ethanol w.e.f. December’19 for one year period.

According to the press release by PIB, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has gave its approval for, including fixing higher ethanol price derived from different raw materials under the EBP Programme for the forthcoming sugar season 2019-20 during ethanol supply year from 1st December 2019 to 30th November 2020:

  1. The price of ethanol from C heavy molasses route be increased from Rs.43.46 per litre to Rs.43.75 per litre,
  2. The price of ethanol from B heavy molasses route be increased from Rs.52.43 per litre to Rs.54.27 per litre,
  3. The price of ethanol from sugarcane juice/sugar/sugar syrup route be fixed at Rs. 59.48 per litre,
  4. Additionally, GST and transportation charges will also be payable. OMCs have been advised to fix realistic transportation charges so that long distance transportation of ethanol is not disincentivised,
  5. OMCs are advised to continue according priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B heavy molasses 3) C heavy molasses and 4) Damaged Food grains/other sources, in that order,

All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme. Remunerative price to ethanol suppliers will help in reduction of cane farmer’s arrears, in the process contributing to minimizing difficulty of sugarcane farmers.

Ethanol availability for EBP Programme is expected to increase significantly due to higher price being offered for procurement of ethanol from all the sugarcane based routes, subsuming “partial sugarcane juice route” and “100% sugarcane juice route” under “sugarcane juice route” and for the first time allowing sugar and sugar syrup for ethanol production. Increased ethanol blending in petrol has many benefits including reduction in import dependency, support to agricultural sector, more environmental friendly fuel, lesser pollution and additional income to farmers.

The Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10%. This programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 to promote the use of alternative and environment friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector.

Government has notified administered price of ethanol since 2014. For the first time during 2018, differential price of ethanol based on raw material utilized for ethanol production was announced by the Government. These decisions have significantly improved the supply of ethanol thereby ethanol procurement by Public Sector OMCs has increased from 38 crore litre in ethanol supply year 2013-14 to estimated over 200 crore litre in 2018-19.

Consistent surplus of sugar production is depressing sugar price. Consequently, sugarcane farmer’s dues have increased due to lower capability of sugar industry to pay the farmers. Government has taken many decisions for reduction of cane farmer’s dues.

With a view to limit sugar production in India and to increase domestic production of ethanol, Government has taken multiple steps including, allowing diversion of B heavy molasses and sugarcane juice for ethanol production. As the ex-mill price of sugar and conversion cost have undergone changes, there is a need to revise the ex-mill price of ethanol derived from different sugarcane based raw materials. There is also a demand from the industry to include sugar and sugar syrup for ethanol production to help in solving the problem of inventory and liquidity with the sugar mills.

Indian Sugar Mills Association welcomes rise in ethanol prices for 2019-20

Source: https://economictimes.indiatimes.com


Indian Sugar Mills Association said that the industry is investing in ethanol capacities.

PUNE: Industry body Indian Sugar Mills Association (ISMA) has welcomed central government’s decision today to increase ethanol prices for 2019-20.

Avinash Verma, director general, Indian Sugar Mills Association (ISMA) said, “Government’s decision to increase ethanol price once again, with special emphasis and a higher increase for ethanol made from B-heavy molasses, confirms the Government’s commitment towards encouraging more diversion of the surplus sugarcane/sugar into ethanol. The second very important decision of allowing a single premium price for the ethanol made from partial or 100% sugarcane juice is another big and positive step in this direction. These decisions will help in further increasing the ethanol blend levels from the current 6% average levels across the country.”

ISMA said that the industry is investing in ethanol capacities. “The industry is responding very positively by hugely investing in new or expansion of ethanol production capacities, which will ensure that we will achieve the Government’s 10% ethanol blend targets almost certainly by 2022. Overall another excellent and very positive policy decision by the Government to encourage more production of the green bio-fuel and at the same time reducing some of the surplus sugar as also helping in more timely payment to our cane farmers.”

Pramod Chaudhari, executive chairman, Praj Industries India said, “The decision to increase ethanol price is an encouraging development for the farming community as well as industry. Higher price for ethanol will not only help in dealing the problem of heavy sugar stock but also result in reduction crude oil imports due to improved ethanol blending rate.”

Next year critical as ethanol plants struggle

Source: https://www.agweek.com


“You’re losing that home for a lot of corn,” says David Ripplinger is a bioenergy economic specialist with North Dakota State University Extension. North Dakota’s ethanol plants are all continuing to operate, but some in Iowa have idled or shut down.

Some older ethanol plants or ones in competitive cases may “have to fold, they’re going to have to leave the table,” he says.

The administration’s handling of the Renewable Fuel Standard has hit ethanol plants in the eastern Corn Belt will have a double-whammy of poor local production because of excessive moisture and drown-out, and the need to source higher-priced corn from greater distances.

The EPA is hurting the ethanol industry by continuing to grant Small Refinery Waivers to refiners who use the product. The waivers are issued to refineries that refine 75,000 barrels of oil a day.

But it’s had an out-sized effect of effect of creating “slack” for all blenders, because the RINs (renewable identification numbers that identify production for tax purposes), weren’t re-allocated to other producers, which removed the incentive for larger refineries to use more ethanol.

The small refineries have asked for relief from the RFS requirements, which also hurts producers of biodiesel, made from soybeans. The EPA declines to say exactly how it determined which small refineries qualified for a waiver, based on disproportionate impacts.

The Trump administration has competing goals of supporting ethanol and cutting regulations, including the RFS.

In 2016, ethanol production had been expanded and constructed to meet expanding demands.

China has always been an “iffy” trade partner. U.S. tariff disputes with China on steel and retaliation in February 2018 made U.S. ethanol exports to China disappear. That dashed hopes that the U.S. could play a role in meeting a Chinese ethanol use mandate.

Domestic use will be driven by adoption of E-15, a 15% blend of ethanol in gasoline. Most regular gas in the U.S. is E-10, a 10% blend for regular gas that is now everywhere in the U.S.

If E-15 is less than 2% of the price of E-10, consumers are getting a better deal, Ripplinger says. The advantage could be even greater if engines were designed for the purpose. Further, there is “truth” in the idea that E-30 would make it even more advantageous.

Brighter spots on the marketing horizon include that Brazil is buying more U.S. ethanol. Ironically, Brazil is famous for an aggressive role in growing the industry, making ethanol from sugarcane.

“There are certain times and locations where the United States has a tremendous advantage to certain parts of the country,” Ripplinger says. The U.S. exports 300 million gallons of ethanol a year to northeast Brazil. Brazil is looking to enact a low-carbon fuel standard, which bodes well for ethanol.

Ironically, Brazil’s sugarcane-based ethanol has a smaller greenhouse gas footprint, so central California imports it. “The joke is we have ethanol tankers passing in the night,” Ripplinger says.

U.S. ethanol exports account for 5 to 10% of production. “The global trading system is really on-and-off, driven in large part by the price of sugar,” he says. When sugar prices collapses, Brazil goes into the market.

Cabinet approves hike in ethanol price for supply to OMCs

New ethanol price effective from 1 December 2019 for one year period.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has given its approval for the following, including fixing higher ethanol price derived from different raw materials under the EBP Programme for the forthcoming sugar season 2019-20 during ethanol supply year from 1 December 2019 to 30 November 2020:

(i) The price of ethanol from C heavy molasses route be increased from Rs 43.46 per lit to Rs 43.75 per litre,

(ii) The price of ethanol from B heavy molasses route be increased from Rs 52.43 per lit to Rs 54.27 per litre,

(iii) The price of ethanol from sugarcane juice/sugar/sugar syrup route be fixed at Rs 59.48 per litre,

(iv) Additionally, GST and transportation charges will also be payable. OMCs have been advised to fix realistic transportation charges so that long distance transportation of ethanol is not disincentivised,

(v) OMCs are advised to continue according priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B heavy molasses 3) C heavy molasses and 4) Damaged Food grains/other sources, in that order.

All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme. Remunerative price to ethanol suppliers will help in reduction of cane farmer’s arrears, in the process contributing to minimizing difficulty of sugarcane farmers.

Ethanol availability for EBP Programme is expected to increase significantly due to higher price being offered for procurement of ethanol from all the sugarcane based routes, subsuming partial sugarcane juice route and 100% sugarcane juice route under sugarcane juice route and for the first time allowing sugar and sugar syrup for ethanol production. Increased ethanol blending in petrol has many benefits including reduction in import dependency, support to agricultural sector, more environmental friendly fuel, lesser pollution and additional income to farmers.

Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10%. This programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 to promote the use of alternative and environment friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector.

Government has notified administered price of ethanol since 2014. For the first time during 2018, differential price of ethanol based on raw material utilized for ethanol production was announced by the Government. These decisions have significantly improved the supply of ethanol thereby ethanol procurement by Public Sector OMCs has increased from 38 crore litre in ethanol supply year 2013-14 to estimated over 200 crore litre in 2018-19.

Consistent surplus of sugar production is depressing sugar price. Consequently, sugarcane farmer’s dues have increased due to lower capability of sugar industry to pay the farmers. Government has taken many decisions for reduction of cane farmer’s dues.

With a view to limit sugar production in the Country and to increase domestic production of ethanol, Government has taken multiple steps including, allowing diversion of B heavy molasses and sugarcane juice for ethanol production. As the ex-mill price of sugar and conversion cost have undergone changes, there is a need to revise the ex-mill price of ethanol derived from different sugarcane based raw materials. There is also a demand from the industry to include sugar and sugar syrup for ethanol production to help in solving the problem of inventory and liquidity with the sugar mills.