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Crude oil / petrol and diesel prices will fall sharply, Modi government's decision will also benefit farmers

The government has decided to increase the percentage of ethanol blended in petrol from 10 per cent to 20 per cent by 2023 in view of the ever-increasing bill for crude oil imports. In 2020, the Indian government imported 165.59 million metric tonnes, or 166.6 million tonnes of crude. India spends more than Rs 8 lakh crore a year on crude oil imports. This step has been taken with the intention of reducing these costs.

As a result of this decision of the Government of India, petrol prices can be brought down. Also, the revenue of sugar factories can be increased. There are 13 active sugar mills in Gujarat alone. All but one of the two mills produce ethanol. They were given Rs. The price has been fixed by the government at 45.69.

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Opportunity for farmers to earn extra income


This price gives them an opportunity to earn extra income for the farmers. Farmers can also be given more money for the price of sugarcane. If the government decides to add 20 per cent ethanol to petrol, India may have to reduce its sugar production. In India, the annual demand for sugar is 250 lakh tonnes.

In contrast, last year's production in India was 310 lakh tonnes. Moreover, carry forward stock remains large. Every year 40 to 50 lakh tons of goods fall. There is no scope for export, as the price of sugar abroad is much lower than in India. So keep this extra stock as a reserve.

Read in Gujarati news 

What Sugar Milan connoisseurs say

Sugar mill experts say it is reasonable to decide to mix more ethanol. As a result, the costly exchange behind crude imports can be avoided. But to save this, sugar production should be reduced from 310 lakh tonnes to 275 lakh tonnes. Doing so will directly use the sugar cane to make ethanol. As a result, 3.5 million tonnes of sugar will be replaced by additional ethanol.

The revenue generated from it will significantly improve the economic mathematics of the sugar mill. Yes, it can have a direct effect on the supply of livestock if the residue of sugarcane used as livestock is diverted to ethanol. Animal husbandry is good in Gujarat. Therefore, it is necessary to take care that there is no shortage of food.

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Sugar factory managers say that farmers have to pay Rs. Prices range from 3500 to 3600. It includes Rs. The process cost of 600 is about 105 kg of sugar per tonne. For every quintal of this sugar they get Rs. Priced at 3100. In this situation, Rs. If they get 45.69, they can earn better as a result. Rs. There may be an additional income of 500 to 550.

Molasses released as a by-product after sugar is made is used to make ethanol. Its per tonne is Rs. Prices range from 9500 to 10,000. If processed in a distillery, it costs Rs. 11,500 can be found. It is also used by the paper industry.

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The revenue of sugar mills has come down a bit as the paper industry has broken the price of bagasse by forming a syndicate. The government should be proactive in breaking this syndicate. When the syndicate was not formed, Rs. Prices were up to 2800. Now that price has come down to Rs. Has come in the range of 1200 to 1500.

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