Pilibhit: All-India Distillers’ Association (AIDA) has urged govt to reconsider reducing the incentive for maize-based ethanol from ₹5.79 to ₹2.79 per litre, which brings the effective procurement rate to ₹68.86 per litre, warning that the reduction will threaten the economic viability of grain-based ethanol production.
AIDA emphasised that adequate incentive support is essential to sustain domestic capacity, secure stable markets for maize farmers, and keep maize commercially viable as India works toward its 20% ethanol blending target under the Ethanol Blended Petrol (EBP) Programme. Escalating energy, processing, chemical, and logistics costs have rendered the current ₹60.32 per litre procurement price unviable, prompting the association to seek an immediate upward price revision. Stay updated with the latest Bareilly news.
Beyond maize, AIDA highlighted mounting financial strain on distillers processing surplus Food Corporation of India (FCI) rice. Deputy Director General Bharati Balaji noted that thin margins are threatening investor confidence across the sector. To guard against climate and agricultural uncertainties like El Niño, AIDA president Vijendra Singh and vice president Kushal Mittal advocated for a diversified feedstock strategy. They called for policy flexibility to switch between grain and sugarcane feedstocks—such as sugarcane juice, syrup, and B-Heavy molasses—cautioning that no single raw material can meet national requirements under shifting weather patterns. Download the TOI App.