Tuesday, October 23, 2007

Ethanol

Taking the case of ethanol; its production depends on molasses obtained from sugar cane (a primary cash crop in the country). Large industries engaged in sugar production such as Balrampur Chinni, Bajaj Hindusthan& Dhampur Sugar have been busy romping up their production capacities for molasses derivation. However, the ‘ethanol’ comfort factor ends there, and you can blame the myopic government policies for the same. A spokesperson of a large western UP-based company (who requested for anonymity) flatly put it across to B&E, “We do not want to increase the production share of molasses as we hardly save anything on that at the present rates, A quintal of sugarcane yields Rs.18 for each kg of sugar, but it only gives Rs.2 for each kg of molasses obtained!” The considerable gap is demotivating for producers even though molasses is a multi-purpose ingredient in a lot of production activity.

For Complete
IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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