INDUSTRY P
ERSPECTIVE Back to Annexure
LANDED COST OF MAIZ Current MSP of Maize is Rs.19.62 pe However, market prices are ar Rs.23 per Kg. Thereafter various costs add up 4.5 to 6 per Kg. depending location. It is possible to reduce costs by Rs 2 per Kg. by creating an eff ecosystem.
E AT FACTORY IS MSP+ Cost in Rs. Per Mt Packing, Handling and Regulatory 1770 Intermediary Commissions 200 Storage and Interest 1580 Transport to Distillery* 1000 Total Cost to Land at Factory 4550 Indicative break up of cost *assumed average, depends on location of distillery er Kg. round to Rs. upon s.1.5 to ficient Back to Annexure
COST OF CONVE Using the current technology o milling, high levels of energy integ and zero liquid discharge the total c conversion is Rs. 26.54 per litre Energy is the main cost of convers maize to ethanol – Rs. 14 per litre 4 other cost heads make up the ba Rs. 12.5 per litre of cost
ERSION OF MAIZE of dry gration cost of sion of alance Cost in Rs. Per litre of Ethanol Enzyme, Chemicals & Repairs 2.52 Fuel, Steam & Power 14.00 Wages, Salary and Fixed Costs 3.62 Return on Equity for Investor 2.4 Interest & Depreciation 4.00 Total Conversion Cost 26.54 Back to Annexure
REALISATION FRO Main byproduct of Maize Ethanol is Dis with Solubles. This contains a good balanced nutri livestock industry and can replace Soy composition. Around 260 Kgs of DDGS can be produ Maize Distilleries can realise Rs. 19-20 per kg lower protein content vs rice DDGS ), w around Rs. 13 per litre of Ethanol Other by products contribute Rs 0.55/litr
OM BY-PRODUCTS stillers’ Dried Grains ent profile for the ya Meal in the feed uced from per mt of g of DDGS ( due to which translates to re. Cost in Rs. Per litre of Ethanol DDGS 13.00 CO2 0.50 Fusel Oil 0.05 Total Realisation from by products 13 .55 Back to Annexure
Cost of Production Basis current costs of materials viable price of Maize ethanol is Rs. 7 per litre. In the initial days, to support distill to guarantee off-take of maize farmers a preferential price of m ethanol must be set.
n of Maize Ethanol the 75.77 eries e to maize Cost in Rs. Per Mt Maize Landed at Factory in Rs. Per MT 23170 Maize Cost in Rs per Litre (385 litre per MT Recovery) 62.78 Conversion Cost Per Litre 26.54 Realisation from by products per litre -13.55 Total Cost of Ethanol per litre 75.77 Back to Annexure
SUCCESS STORY – MOL Farmers are incentivised to grow take of their produce at FRP. FRP is revised from time to time cost of living and farming conside Sugar mills are guaranteed fair remunerative realisation via: Assured off take of Ethanol Accurate formula driven pric major cost centres (sugar reali This approach has led to growt ethanol supply.
LASSES/JUICE ETHANOL w cane as they are guaranteed off keeping in view various economic erations. r return on their investment and ing of Ethanol that is indexed to sation and MSP of Sugarcane) th in farmer income + growth in Back to Annexure
PROPOSED MECHANISM Borrow from the success of the Sug Formula for fixing Ethanol rates to b Maize MSP/FRP Energy/Utility costs (mainly coa DDGS Realisations Other cost heads need to accurate Formula can be run once per year remunerative price of Maize Ethano Price of maize ethanol to be anno Ethanol tender.
M FOR MAIZE ETHANOL gar/Ethanol Model in India. be indexed to major cost heads: l) ely factored into the formula. or more in order to discover fair and ol ounced after MSP is fixed but before Back to Annexure
PROPOSED PR Pricing formula should b costs and interests Cost Head Basis Maize MSP Extra Cost (freight /taxes/ storage etc. ) To be Validated base submitted and Energy Current cost on as p Prices Consumables & Other Cost Heads To be Validated base submitted and Depreciation Establish and st Interest Establish Rate & Return On Capital Already esta Benefit Of DDGS/CO2/Fusel To be validated base
RICING MODEL be transparent and inclusive of all s of all relevant stakeholders. s Indexation As per MSP ed on actual data d checked As per change in Regulation& inflation for freight er Current Coal s As per NCI ed on actual data d checked Based on Actuals led by Price inflation tandardize On the basis of Steel Prices & Inflation use as Base As per Change ablished d on actual data Use same mechanism as established Back to Annexure
CHALLENGES CONCERNING E MA Sr. No. Challenges 1 Availability of Raw Material (Maize) 2 Reduction in milling capacity (up to 50%) with Maize as feed stock 3 Frequent breakdowns owing to breaking of mesh in mills. 4 Frequent CIP of PHEs
THANOL PRODUCTION FROM AIZE Way ahead To encourage farmers to cultivate high yielding maize crop with high starch content. Higher capacity required for increased Milling. Good quality (expensive) Mesh & spare parts required to maintain. Higher level of spares inventory. Stand-by operational equipment required. Back to Annexure
Sr. No. Challenges 5 Cost of Ethanol produced from Maize more in comparison to Rice. This is due low starch content (60% as against 70% case of Rice) leading to low ethan recovery. 6 High chemical cost owing to inferior qua of flour produced from maize in comparis to rice. 7 Utility cost is higher in comparison to ri because of low ethanol recovery fro Maize. 8 Area under Maize may cannibalize the existing cane area and thereof affect the cane availability for sugar mills / distillerie CHALLENGES C
Way ahead is to % in nol To reduce the cost of ethanol from maize, we need to promote high yielding varieties of maize with high starch content. lity son Milling section should be well designed to produce good quality of maize flour. ce, om Price of ethanol produced from maize should be made remunerative. es. Maize area should be increased outside the catchment area of Sugar Mill. It should replace paddy or other crops. CONTINUES…… Back to Annexure
NEXT STEPS AND G • Gap between the current formula and • Remunerative pricing of ethanol from m cultivation. • Collaborate approach of pricing formu • Support needed from Department of A industry in India to promote the use of
GOING FORWARD costs borne by Distilleries. maize is essential to promote maize ulation involving OMCs and Distilleries. Animal Husbandry and Livestock DDGS. Back to Annexure
NEXT STEPS AND G Build a stage wise approach to ma change overnight. ESY 2023-24 Maize Requirement (MMT ) 0.65 Rice Requirement (MMT) 5.00 Maize Ethanol in Cr Litres 25 Rice Ethanol in Cr Litres 225 Maize Ethanol % of Grain Based Ethanol 10%
GOING FORWARD aize ethanol. It is not possible to ESY2024-25 ESY 2025-26 1.82 3.51 6.22 7.00 70 125 280 325 20% 30% Back to Annexure
THANK
K YOU Back to Annexure
KEY TAKEAWAYS National Seminar o Subodh Ku Additional Department of Food a
OF THE SEMINAR on Maize & Ethanol mar Singh, l Secretary and Public Distribution Back to Annexure
139 Back to Annexure
Benefits from 20% INCOME OF FARMERS: Timely payment to cane farmers Benefit for Maize & Paddy farmers Addresses surplus grain problem About 165 lakh tons of grains will be utilized NEW INVESTMENT OPPORTUNITIES Rs. 41,000 crore investment New industries in rural areas Job creation in villages Improves Reduces Carbon by 30-50% & Hy
% Ethanol Blending DOMESTIC SUGAR INDUSTRY: 60 lakh tons of surplus sugar to be diverted every year Product Diversification ATMANIRBHAR BHARAT: REDUCES CRUDE OIL IMPORT BILL Substitution of about 80 lakh metric tons oil Saves foreign exchange of about ₹ 50,000 crore s Air Quality Monoxide emission ydrocarbon by 20% Back to Annexure
Distributed Production of Eth Maize With inclusion of grain based distilleries in interest subvention sche ethanol plants (DEPs) by OMCs, most of the states would be self suf Production of Ethanol 2021-22 Pr
hanol by 2025: Ethanol from is Key Ethanol Sufficient States Ethanol Deficit States (Less Than 50%) Very Deficit Ethanol States eme, inclusion of maize as feed stock and promotion of dedicated fficient in ethanol production by 2025. roduction of Ethanol 2025-26 Ethanol Deficit States (More Than 50%) Back to Annexure
Average Decline in Water L 2000-2019, Metres Below G -9.2 -7.7 -7.0 -7.0 -5.0 -4.3 -2.9 -2.4 -2.3 -2.1 -1.5 -1.4 -1.2 -1.1 -0.7 - -10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 Punjab Delhi Andhra Pradesh Haryana Telangana Tamil Nadu Uttar Pradesh Gujarat Rajasthan Maharashtra Bihar Karnataka West Bengal Jharkhand Chhattisgarh
evel in Major States During Ground Water Level (Mbgl) 0.6 -0.6 -0.4 -0.3 0.2 0.3 0.9 1.2 Assam Madhya Pradesh Kerala Odisha Himachal Pradesh Jammu and Kashmir Uttarakhand Goa Source: India WRIS Back to Annexure
Promotion of Maize as P Globally maize/corn is feed stock for ethan Maize can replace use of FCI Rice to great Long run, as it is cost efficient and consum water. Present yield of Maize varies from 3-7 tons which is 10-11 Tons/hectare in USA. Ethanol production from maize is 380 litr India while it is 420 litres/Ton in USA. Varieties with higher yield and more starc can make maize more viable for production.
Primary Grain Feedstock nol (63%). extent in mes less s/hectare, es/Ton in h content ethanol Poultry & Animal Feed, 60% Industrial/ Starch/Export 20% Human consumpt ion, 20% Source: ICAR-Indian Institute of Maize Research Current maize production 33.62 million tons in 2021-22 (4th Adv Estimates) from 31.65 million tons in previous year. Dry Distillers Grain Soluble (DDGS) - 26% by-product in ethanol making- has high protein & useful for cattle/poultry/fish feed Back to Annexure
Glimpses on • Maize is the third most important • Area, Production and Yield (APY) Year Area (Lakh Ha) Product (Million To 1950-51 31.60 1.73 2014-15 91.85 24.17 2015-16 88.06 22.56 2016-17 96.33 25.90 2017-18 93.80 28.75 2018-19 91.32 27.71 2019-20 95.69 28.77 2020-21 98.92 31.65 2021-22 99.58 33.73 2022-23# 100.75 34.61 #2nd Advance Estimates
n Maize Crop cereal crop after rice and wheat. ) & MSP of Maize: tion onnes) Yield (Kg/ha) MSP (Rs/Qtl) 547 - 2632 1310 6 2563 1325 0 2689 1365 5 3065 1425 3035 1700 7 3006 1760 5 3199 1850 3 3387 1870 3435 1962 Back to Annexure
APY of major mai 2022-23 (2nd Adv State Area (Lakh Ha) Karnataka 16.27 Madhya Pradesh 16.14 Maharashtra 12.47 Rajasthan 9.61 Uttar Pradesh 7.93 Bihar 4.93 Telangana 4.74 Gujarat 3.91 Tamil Nadu 4.18 Andhra Pradesh 3.26 All-India 100.75
ze growing states vance Estimates) Production (Lakh Tonnes) Yield (kg/ha) 52.02 3197 52.55 3256 37.33 2994 18.85 1961 17.24 2174 20.36 4130 27.62 5827 7.74 1979 30.76 7345 20.55 6305 346.12 3435 Back to Annexure
Ethanol from Maize is Nece Ethanol Required for E 20 and other industrial uses is 1350 crore litres which is expected to come equally from molasses and grain based distilleries For 660 crore litres from grains, abou grains required fo maize is to be used a feedstock FCI rice is provided to distilleries at prices ₹ 16/kg less than econ Rice is water intensive and needs to be diversified to other crops However, to ensure consistency, FCI rice should be available to f
essity for EBP Programme s ethanol t 165 LMT or which as primary k. FCI Rice would be available for assured feedstock during shortage or natural calamities. omic cost. s to save water table. fill gap of demand & supply of other feedstocks for ethanol. Back to Annexure
Initiatives of Doa&fw: Collab Maize Pro Better Varieties, Yield and Higher Acreage • Disparity in yield among states • Sharing of High Yielding Varieties and Best Practices • Availability of Seeds to farmers • Targeted Region-specific approach Agricultur Progra • More pro Schemes li and CDP etc • Distilleries a also supp KVKs in suc • State should associated developme
borative Strategy for Higher oduction ral Extension ammes ojects under ke NFSM, RKVY c. and OMCs can port IIMR and h activities Governments be equally in maize nt. Mechanisation of Maize Cultivation • Availability of machines • Financial Assistance • Sharing of resources like Combines for wheat harvesting Back to Annexure
Integrated Approach for M Prod ICAR-IIMR to work on varietie ethanol from maize. Maize Cob and straw can be 2G ethanol and Compressed Research and Development lower costs of production of Developing other by-produc
Maize based Ethanol and By ducts es for higher recovery of e used as fuel for boilers, d Bio Gas (CBG). for better recovery and ethanol from maize. cts like corn oil, fiber etc. Back to Annexure
Improvement in DDGS Qu Anima Animal feedstock requirement in the country is 450 LMT which is expected to be about 540 LMT by 2025-26. With use of about 165 LMT of grains, about 35 LMT DDGS can be produced. Present production of DDGS is about 5 LMT. Thus, promotion of maize would lead to 7 times increase in DDGS production. This would support not only distilleries but also animal/poultry feed industry.
ality and Its Marketing as al Feed Outreach Programmes Customized Product Formulation for different clients Quality and Consistency Direct Marketing to Millers Back to Annexure