Shetty calls for transparency in restoration of losses because of ethanol manufacturing, one-time fee of FRP

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As the sugar business takes particular steps in the direction of diverting the manufacturing of ethanol from sugar, farmer chief and former MP Raju Shetti has known as for a definitive and revised system to not compromise on farmers’ earnings. Shetty, who met Sugar Commissioner Shekhar Gaikwad in Pune
On Wednesday, reputed establishments like IITs have been requested to conduct technical audit of ethanol manufacturing mills.

Ethanol, a gasoline additive, is manufactured by sugar mills both instantly from sugarcane juice or from molasses – a viscous liquid with fermented sugar produced earlier than crystallized sugar is extracted from sugarcane juice. Depending on the sugar content material, molasses is assessed as both B heavy or C, and the previous comprises extra fermentable sugar than the latter.

If ethanol is produced from B heavy molasses, then the whole sugar produced by crushing one ton of sugar is lower than that to supply ethanol for C molasses. The central authorities has fastened the grade-wise value of ethanol, with the very best value bracket for ethanol produced instantly from sugarcane juice and the bottom value for ethanol produced from C molasses.

For sugar mills, ethanol manufacturing is a greater possibility than sugar, as they get a constant value for the product. The grade-wise value is an incentive for mills to scale back sugar manufacturing and go for ethanol as a substitute. But for farmers whose earnings are instantly linked to ‘sugar restoration’, this could be a drawback, because the sugar produced per tonne of sugarcane is diminished throughout ethanol manufacturing.

In order to guard the curiosity of farmers, the central authorities has ready a formulation which will probably be used to calculate the loss because of ethanol manufacturing. Organizations equivalent to Pune-based Vasantdada Sugar Institute (VSI), Kanpur-based National Sugar Institute (NSI) or another NABL-certified group can depend.

However, whereas speaking to The Indian Express, Shetty solid doubt on the credibility of VSI. “VSI is an institution funded by sugar mills and thus it will be more interested in protecting the interests of mill owners than farmers. We want there to be a third party audit of the recovery loss done by an organization like IIT, in which there is no conflict of interest in this matter,” he mentioned.

During the assembly with the Sugar Commissioner, Shetty additionally raised the difficulty of fee of Fair and Remunerative Price (FRP) in installments by the mills. Barring the mills in Kolhapur district, all others have began paying the fundamental FRP in instalments. Before the sugarcane crushing season started, the mills had the farmers signal a type, agreeing to pay the FRP in installments, amongst different particulars.

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With inputs from TheIndianEXPRESS

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