|
October 2013, VOL II |
In our continuous endeavour to share with you the most recent developments in the alcohol industry in India, I bring to you Volume II of India Alcohol Review. This quarter saw positive developments on the fuel ethanol blending front – the Oil Marketing Companies (OMCs) started placing orders for procurement of ethanol and also launched a second ethanol procurement tender of 1.33 Bn litres for supplies between Dec’13 to Nov’14. While OMCs may still miss the 5% blending target this year, I believe both these developments are important milestones in the implementation of fuel ethanol in India and could provide impetus to setting up of new capacities in the country. Indian supply base remains strong due to availability of several first generation feedstock. Another key event shaping this quarter was the exchange rate, which saw high volatility. Last few weeks have seen this stabilise and I expect the Rupee to remain range-bound at current levels for the next few months. Quarter ended 30 Sept saw a total export of 36.4 Mn litres of ENA and 19.2 Mn litres of other alcohol. In the quarter prior to this, these figures stood at 43.0 Mn litres and 20.1 Mn litres respectively. I expect ethanol export volumes to increase with the start of the sugar crushing season in October.
Shekhar Swarup |
|
India News |
|
 |
|
OMCs may miss ethanol blending target againOct 3: With the unexpected delay in the allocation of ethanol supply orders to sugar mills, oil marketing companies (OMCs) are set to miss the mandatory five per cent blending target this year, too. Read more Maharashtra farmers demand hike in ethanol price, plan stirOct 3: After demanding substantial hike in sugarcane prices for the last four years, farmers in the sugar belt of Maharashtra are now demanding a hike in ethanol prices. Read more Farmers demand permission to produce ethanol from sugarcaneSept 25: Farmer leaders on Tuesday stepped up their demand for permission to tillers to produce ethanol from sugarcane they produce and sell the by-products. Read more Purti to sell cheaper ethanol blended petrolSept 1: Ethanol producers are making an effort at their individual level to promote blending. In an initiative, Purti Group, led by Nitin Gadkari, former BJP national president, has decided to start fifty outlets where ethanol blended petrol will be sold at 2% less than market price. Purti has tied up with Essar Oil Limited for this purpose. Read more 2nd Generation (2G) Cellulosic Ethanol Demo Plant by Praj Sees Ground-BreakingAug 8: Praj Industries, a process solutions company for bioethanol, alcohol and brewery, among others, announced setting up of the first integrated 2nd Generation (2G) Cellulosic ethanol plant in South Asia.Read more Inflation, slowdown and rise in taxes make liquor consumption in India a costly affairSept 17: Liquor makers in the country are staring at more sober days after a decade of heady growth as increasing prices and a slowing economy force consumers, particularly those at the lower end of the market, to check their discretionary expenses. Read more Sugar mills sitting on huge inventory of 8.5 mn tonnes: ISMAOct 6: Sugar mills have begun the 2013-14 marketing year, that started this month, with an opening stock of 8.5 million tonnes and this huge inventory could spell trouble for the sector, according to industry body ISMA. ISMA has pegged sugar production in 2013-14 at 25 million tonnes meaning that sugar output will be higher than domestic consumption for the fourth consecutive year in a row. Read more Is maize India's new wonder crop?Aug 10: The crop has been included in the government's ambitious Rs 500 crore crop diversification strategy for North Indian states. For the first time ever, the government has a fixed the MSP of maize for 2013-14 crop season at Rs 1,310 per quintal, which is same as that for common paddy with a view to encourage growers to plant more maize replacing paddy, particularly in Punjab and Haryana. Read more New drawback rates a big dampener for exports: CIISept 19 : “The announcement regarding new drawback rates, which are going to be effective from September 21, is a big dampener for India's exports, especially at this crucial time when we all are working towards increasing exports against all odds.” Said Sanjay Budhia, Chairman, CII National Committee on Exports and Imports, and Managing Director, Patton Group. Read more (The specific rate provided to Ethanol/ENA under tariff item no. 22071090 is being changed to ad valorem 1% (composite) and 0.3% (customs) Read more New tariff guidelines for major port projectsJuly 31: Union minister for shipping G K Vasan announced new tariff guidelines for major port projects in Mumbai Wednesday. The ministry claims the simplified procedures will increase investment flows into the sector. The ministry has set an ambitious target to award 30 port projects during 2013-14 which will add 288 million tons per annum (MTPA) with an investment of approximately Rs 25,000 crore. Read more DSM increases resin pricesSept 13: In a move which has impacted price HDPE drums, DSM Composite Resins has increased prices for its complete portfolio of Unsaturated Polyester/Vinyl ester resins sold in Europe, Middle East and India.Read more The Indian Rupee has managed to halt its rapid declines to a more stable positionSept 26: Since new RBI governor Raghuram Rajan took the hot seat the Indian Rupee has managed to halt its rapid declines to a more stable position. In August the currency tumbled to record lows on more than one occasion. Since Rajan took office however the Rupee has recovered by almost 10%. |
|
Globus Watch |
|
|
|
Globus enhanced its aggregate bulk alcohol production capacity by 42 million litres in fiscal year 2012-13, The new plants are on stream and running at near-full capacity. Using the advanced multi-pressure distillation technology, product quality remains impeccable and has received acceptance from premium liquor makers worldwide. |
|
|
Add Friend to Mailing List |
Send Feedback |
Suggest a News Item
|
|