The Indian government has no plans to resume the sale of subsidised rice for the production of ethanol in the near future, according to Food Secretary Sanjeev Chopra. The sale has been discontinued due to concerns about domestic output, high retail prices, and economic unviability. However, Chopra states that this policy may be renewed in the future and that the government is encouraging the use of maize for ethanol production. Additionally, there are concerns about a potential fall in sugar production next season, but the government is taking measures to ensure a higher stock of sugar for both domestic consumption and diversion for ethanol production. The recent increase in the fair and remunerative price of sugarcane is also seen as a positive signal for farmers to increase their sowing, according to Chopra.
Government's Stance on Subsidized Rice for Ethanol: A Detailed Analysis
Background
The Indian government has been considering the allocation of subsidized rice for the production of ethanol as a means to promote renewable energy and reduce dependence on fossil fuels. Ethanol, derived from the fermentation of sugars, can be blended with petrol to create biofuels.
Current Position
According to Food Secretary Sanjeev Chopra, the government has no immediate plans to resume the sale of subsidized rice for ethanol production. This decision stems from concerns about the potential impact on domestic rice production, high retail prices, and the economic viability of ethanol production from rice.
Reasons for Discontinuation
Future Prospects
While the government has currently discontinued the sale of subsidized rice for ethanol, Chopra said that the policy may be revisited in the future. The government is also encouraging the use of maize for ethanol production as a more viable alternative.
Concerns and Measures
There are concerns about a potential fall in sugar production in the upcoming season. However, the government is taking steps to ensure a higher stock of sugar for both domestic consumption and diversion for ethanol production. Additionally, the recent increase in the fair and remunerative price of sugarcane is seen as a positive signal for farmers to increase their sowing.
FAQs
1. Why did the government discontinue the sale of subsidized rice for ethanol?
To protect domestic rice production, control retail prices, and ensure economic viability.
2. What are the alternative feedstocks being considered for ethanol production?
Maize is a viable alternative due to its lower cost of production.
3. Is the government considering resuming the sale of subsidized rice for ethanol in the future?
Yes, the policy may be revisited if circumstances change.
4. What is the government doing to address concerns about a potential fall in sugar production?
Implementing measures to ensure sufficient sugar stock for both domestic consumption and ethanol diversion.
5. How has the recent increase in sugarcane prices impacted ethanol production?
It has provided a positive incentive for farmers to increase sugarcane cultivation, which could lead to a higher supply of feedstock for ethanol production.
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