How to start ethanol farming in India

Ethanol is a substance majorly used in petrol vehicles, sanitiser and alcohol etc. In this post, you will understand ethanol and its sources in agriculture.

Introduction

Ethanol is a liquid product obtained from agricultural waste and crops. The first source of Ethanol is agricultural crops such as sugarcane, maize, rice and parali etc. Directly ethanol farming is not done instead some agricultural crops such as sugarcane, rice, and maize are collected and placed in the ethanol plant. To set up an ethanol plant huge amount is required and if you need an ethanol plant project report then please comment and I will definitely arrange the same for you.

How to start ethanol farming in India

To start an ethanol farming business in India you need to set up an ethanol plant which costs around Rs 70-85 lakh/unit. Before the setup, you need to understand important points about ethanol which are discussed below.

Ethanol sources

I guess now you are clear about what is ethanol. Let’s discuss its sources. This product is majorly obtained from sugarcane, maize and rice. It can also be made from rotted wheat and other grains. Waste parali which farmers use to burn after harvesting the wheat and other crop that is also used to make ethanol. 

Ethanol farming in US and Brazil

Brazil is one of the largest sugarcane-producing countries and they recognised this product way back and started making ethanols. Although India is also one of the largest sugarcane-producing countries and holds the second position in the entire world but couldn’t recognise the ethanol power in past. Thankfully now the government is on the right path. 

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The Indian government has already banned sugar production from sugarcane and begin ethanol-making. Apart from Brazil America also recognized ethanol necessity in past and started promoting ethanol on a larger scale and they decided to promote maize farming in America. America used to create ethanol through maize and that ethanol is majorly used in their vehicles. 

Ethanol farming in India

Now Indian government has decided to promote ethanol cultivation in India. As India holds 2nd position in sugarcane production so the government decided to target and promote sugarcane cultivation for ethanol and taking the first step they already band the sugar production from sugarcanes. 

The Indian government is doing this with a solid plan and they have already stored billions of tonns of sugar in buffer stores so that sugar prices do not increase in future. The government has given a deadline of 2025 to the auto sector. According to the government, strict notification auto sectors are not allowed to make e10 engines, instead, they should upgrade to e20 fuel engines from 2025. 

Let me make it more clear, e10 denotes ethanol at 10% with petrol at 90% and e20 denotes ethanol at 20%. Till now Indians were using vehicles with 90% petrol and 10% ethanol by using e10 fuel engines.

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After the government notification auto sector will have to create engines of vehicles with a capacity of 20% ethanol and 80% fuel which is known as the e20 fuel engine. The e20 fuel in India is already on trial mode for a few years. It will definitely reduce the dependency burden of India on petrol. 

As per the government plan, they will increase the ethanol percentage in future once the e20 model gets successful. The government has decided to reach at least the e50 model in a quick time so you will see a great hike in ethanol promotion in the upcoming year also. As per Nitin Gadkari’s interview, they are aiming for 80% ethanol vehicles with only 20% petrol. Once this will achieve the dependency on petrol ends and it will prevent a huge amount of Indian money from going to Gulf countries. 

As per the report Indian govt is spending per year approximately 65 billion dollars to purchase petrol from Gulf countries. This is because every year India is producing a huge number of vehicles due to extra demand in the country. The tragedy is India is capable of making most of the vehicles in the country but importing the fuel from other countries. Eying this issue government has taken the initiative to promote ethanol on a higher note.

Farmers benefit

Till now farmers are getting very low prices from the government for their crops. Farmers are helpless to sell 1 kg of maize at only Rs 6 to the govt. You must have purchased a bhutta at the roadside costing Rs 10 – 15 but why farmers are getting only Rs 6 for 1 kg, think what farmers are getting.

Ethanol farming is a revolution in farmer’s life because the government will need a huge amount of ethanol and they don’t have any source apart from agriculture. The government already planned to purchase huge quantities of sugarcane, maize and rough rice from farmers. Now farmers will definitely get a good amount to sell their products. 

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Not only farmers doing sugarcane and maize farming will get benefits instead the farmers who helplessly throw their crops on the road while the increase in production will also get benefits. 

Why discrimination 

It looks lewd when compared to others for example a child achieves 90% marks which are higher than his previous 80% marks and he is appreciated by the teachers and principal. Employee performs better and achieves more than the target then he is rewarded by the employer. 

Unfortunately for farmers, things were reversed when they are producing more tomatoes their helpless to throw tomatoes on the road because the government don’t purchase or give them very-very low prices. Similarly, farmers producing more onions were also seen throwing their onions on the road and showing their anger towards the government. 

Now, hopefully, the scenario will get changed because as I said ethanol is just not just farming it will become “Revolutionary Farming” for farmers to change their lives. Ethanol is also made up of rotted grains, crops and parali so farmers will get benefit from all sides. 

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Big opportunity

Farmers can install small ethanol plants at their farm or nearby farm so that they can directly deliver the crop from their farm to the plant in no time and low cost. If farmers will start manufacturing ethanol on their own the picture will change.  

In the future small ethanol plants can be planted nearby the farmer’s farm and the subsidy will play a key role for this plant so be ready for this new opportunity.

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