States urged to liberalise restrictions on ethanol supply to improve sugar sector
Updated: Feb 20, 2015 04:32:49pm
New Delhi, Feb 20 (KNN) Minster of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan urged the state governments to liberalise restrictions on the supply of ethanol so that its blending with petrol can be encouraged to improve financial health of sugar sector. It will help liquidation of cane dues of farmers, he said.
During a meeting with chief ministers of major sugar cane producing states, Paswan urged them to ensure that the barriers which are impeding the implementation of Ethanol Blending Policy (EBP) are to dismantled as the policy can help the industry to attain viability during the surplus of sugar and facilitate liquidation of cane dues arrears of farmers.
Emphasising the significant transaction barriers which impede smooth supplies of ethanol for blending, the minister said state governments not only imposes levy on molasses but also regulates the movement of non-levy molasses.
Inter-state movement of ethanol requires NOCs from the state excise authorities along with permits from dispatching and receiving states. Most States impose export-Import duties on ethanol leaving and entering their boundaries. There are some instances where Octroi is levied on ethanol for entry into municipal limits, he added.
Paswan said that in view of the challenges faced by the sugar sector and mounting arrears of cane dues owed to the farmers, the central government has taken several steps to restore financial health of sugar sector which include assistance such as interest free loans for liquidation of cane dues besides incentives for export of raw sugar.
"Further in a major initiative, the Government of India has also modified the EBP so as to facilitate achieving of 5 per cent blend with petrol. Remunerative prices have been fixed to encourage the industry to supply ethanol to the Oil Marketing Companies (OMCs),” he said. (KNN/ST)
During a meeting with chief ministers of major sugar cane producing states, Paswan urged them to ensure that the barriers which are impeding the implementation of Ethanol Blending Policy (EBP) are to dismantled as the policy can help the industry to attain viability during the surplus of sugar and facilitate liquidation of cane dues arrears of farmers.
Emphasising the significant transaction barriers which impede smooth supplies of ethanol for blending, the minister said state governments not only imposes levy on molasses but also regulates the movement of non-levy molasses.
Inter-state movement of ethanol requires NOCs from the state excise authorities along with permits from dispatching and receiving states. Most States impose export-Import duties on ethanol leaving and entering their boundaries. There are some instances where Octroi is levied on ethanol for entry into municipal limits, he added.
Paswan said that in view of the challenges faced by the sugar sector and mounting arrears of cane dues owed to the farmers, the central government has taken several steps to restore financial health of sugar sector which include assistance such as interest free loans for liquidation of cane dues besides incentives for export of raw sugar.
"Further in a major initiative, the Government of India has also modified the EBP so as to facilitate achieving of 5 per cent blend with petrol. Remunerative prices have been fixed to encourage the industry to supply ethanol to the Oil Marketing Companies (OMCs),” he said. (KNN/ST)
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