April 19, 2024

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Allow use of maize for ethanol production, says CACP

The Commission for Agricultural Expenses and Charges (CACP) has recommended that the authorities allow for use of maize for generation of ethanol in the region, a go that could aid growers fetch greater selling prices.

In its rate suggestions for Kharif 2020-21, CACP said key coverage alterations were necessary for pricing, procurement and utilisation of maize in the region.

Use of maize for ethanol generation will increase demand from customers and guarantee remunerative selling prices and larger income for maize growers, CACP said and cited the example of the US, the place corn is the most intensely employed feed inventory for ethanol generation. Much more than one particular-3rd of corn is employed to make ethanol in the US, which has led to larger income income for farmers, it said. CACP believes that maize has a terrific opportunity for crop diversification in rice-wheat cropping system parts of north-western plains, the place considerable groundwater depletion has occurred. Even so, maize has low profitability, as opposed with competing crops this kind of as rice, because of to low and fluctuating selling prices and produce of maize, it said.

Price tag crash

Maize selling prices have crashed in the new months following the Coronavirus scare hit the intake of poultry goods. Modal selling prices of maize are ruling at all around ₹1,300 for every quintal across various mandis, lessen than the minimal guidance rate (MSP) of ₹1,760 for the 2019-20 period.

CACP has suggested a five for every cent increase in MSP at ₹1,850 for the 2020-21 period. Poultry accounts for shut to two-thirds of the maize created in the region. Maize generation is approximated at 28 million tonnes in 2019-20.

In point, the Nationwide Policy on Biofuels, 2018, has recognized corn among the the opportunity feedstock for generation of ethanol. Not too long ago, the authorities has allowed the diversion of surplus rice from FCI shares for generation of ethanol.

Further more, CACP said procurement of maize under the Price tag Guidance Plan (PSS) is neither feasible nor fascinating as there is no confident mechanism for liquidation of shares procured by public companies and drives out personal trade.

Therefore, the ‘Price Deficiency Payment Plan (PDPS)’ and ‘Private Procurement and Stockist Plan (PPSS)’ ought to be professional-actively promoted in key manufacturing locations, it felt.

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