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AgroPolicy, Interaction, Sustainable Energy

Nitin Gadkari, Union Minister, Road Transport & Highways shared his views with AgroSpectrum on how the production of biofuels can bolster the growth of the agriculture industry. Edited excerpts; 

The Government of India has proposed a target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030 and introduced multiple initiatives to increase indigenous production of biofuels. The promotion of E20 fuel is part of the country’s plans to cut its oil imports and reduce pollution. It is also a move that will benefit sugarcane growers. To increase the production of fuel-grade ethanol, the government is planning to encourage distilleries to produce ethanol from maize and rice stocks available in state-held granaries run by the Food Corporation of India (FCI). Nitin Gadkari, Union Minister, Road Transport & Highways shared his views with AgroSpectrum on how the production of biofuels can bolster the growth of the agriculture industry. Edited excerpts;

How will the diversification of agricultural crops for energy and fuel help the agri sector?

When India got independence, the main challenge of the farmers was to produce enough food grains for the people of the country. Now, with the efforts of our farmers, not only has the country become self-sufficient in food supplies but also we are able to export large quantities of food grains every year. Its farmers are producing a surplus of food grains, fruits and vegetables in the country, surpassing the required consumption in the country.

This increase in agricultural produce compels us to think about its diversion towards converting into energy and fuel. Until farmers are unable to produce raw material for basic fuel in their farms, the dream of ‘Atmanirbhar Bharat’ will remain a dream. Each year more than required sugar for consumption is being produced, but if we divert the surplus sugar towards making ethanol, then we will be able to get a good alternative to crude oil.

Food godowns of the country are stuffed with surplus rice. Paddy is being produced in large quantities that is adding surplus stock every year. The country has 40 lakh metric tonnes (MT) of surplus food grains. Additionally, 20 lakh tonnes of maize is also lying surplus in the godowns.  All these crops can be very efficiently utilised for producing a good quantity of ethanol.

In 2013-14, 38 crore litres of ethanol was produced from molasses. Whereas, the target for current year is approximately 320 crore litres.  What’s astounding is that till June 2021, 180 crore litres of ethanol has already been produced. To meet the requirement of E-20 we have set a target of producing 1500 crore litres by 2025. We need to think in this direction for converting surplus agricultural produce into biofuel and energy.

How will the rural economy get a boost by increasing ethanol production?       

Presently we are importing crude oil to meet around 85 per cent of our requirement which amounts to $55 billion, equivalent to Rs 4,25,000 crore. When we talk about an increase in the blending ratio of ethanol, the money spent for import of crude oil is saved. We also save foreign exchange, that’s why I always say that ethanol is an indigenous import substitute for pollution free green fuel. The best part of ethanol is that it is being produced by using agricultural produce. When farmers are producing such crops to be used for making ethanol, then automatically we will save approximately Rs 30,000 crore of foreign exchange, which in turn will go to the farmers. This way, the dream of ‘Atmanirbhar Bharat’ can be realised. As a result, the exchange rate of the rupee can also be strengthened against every foreign currency.

How will the farmers benefit from increasing ethanol production?

The clear fact is that each and every raw material required to produce ethanol or Biodiesel is cultivated and produced by farmers. Therefore, the major share of the value addition of Rs 2,00,000 crore, say up to 70 per cent, will go into the pockets of farmers.

What strategies are being deployed by the government to produce biofuels on a large scale to fulfil the demand?

On June 4, 2018 the government had prepared an ambitious plan called the National Policy on Biofuels, to facilitate 20 per cent blending of ethanol. This policy document provided a basic action plan to achieve the target of 20 per cent blending by 2030. This year, on World Environment Day, our Prime Minister has reconfirmed India’s determination to have clean and green fuel and preponed the target of 20 per cent blending by 2025.

Best Rates of Ethanol in the World

Brazil, USA, Thailand, etc. are larger producers of ethanol as compared to India. In these countries the basic price of ethanol is approximately Rs 43.88, Rs 44.41 and Rs 49.55 per litre, respectively. The Indian government has recognised six different sources to produce ethanol and rates for ethanol made out of these six types of raw materials are different. These vary according to the raw material being used. For instance, Rs 62.65 per litre is the price when we use sugarcane juice for conversion to ethanol, Rs 57.61 per litre for using B Molasses, Rs 45.69 per litre for C Molasses, Rs 51.55 per litre for damaged food grains and Rs 56.87 per litre for surplus rice taken from FCI. To promote ethanol production, the Government of India has fixed highest rates across the globe. This will certainly boost the ethanol production in the country.

Interest Subvention

To further promote the investment for capacity building for ethanol production, the government has proposed a 6 per cent interest subsidy on the investments. Under this scheme, more than 350 distilleries will get 6 per cent approximately Rs 6000 crore.

BIS for E12 & E15

Earlier, only 10 per cent blending was permissible in the country. States like Maharashtra, Uttar Pradesh and Karnataka had achieved this target long ago. The production capacity of these states is much more than the ethanol required for 10 per cent blending. But, considering 10 per cent cap additional capacity remained unutilised. Looking at the potential of these states, the Government has revised the standards for E12 and E15 on June 3, 2021. This 12 per cent, 15 per cent and 18 per cent blending is a roadmap to achieve 20 per cent blending by 2025.

Augmenting Infrastructure of OMCs

Oil Marketing Companies (OMCs) are preparing for the projected requirement of ethanol storage, handling, blending and dispensing infrastructure. OMCs are augmenting their tankage capacity at supply locations, replace plastic equipment of dispensers, and build more dispensing stations for E20, and E10 petrol.

With the current storage capacity of 17.80 crore litres we can handle about 430 crore litres of ethanol annually, considering storage of production equivalent to 15 days.

Similarly, with the additional planned capacities of 26.84 crore litres by 2025, the total tankage capacities will be 44.64 crore litres, which will handle about 1060 crore litres of ethanol annually considering storage of production equivalent to     15 days.

Government is planning to implement 100 per cent bio-ethanol in the automobile industry in a big way. What are the plans of the Ministry of Road & Transport to facilitate this implementation?

In the month of March 2021, I asked automakers to build flex-engine vehicles. These engines can run using any ratio of blended ethanol ranging from 20 to 100 per cent.

The Ministry of Road Transport & Highway (MoRT&H) has notified BS-VI emission norms in Central Motor Vehicle Rules 1989 which are applicable to all vehicles post April 1, 2020. Newer vehicles on E20 will have to meet BS-VI norms. MoRT&H has notified GSR 156(E) on March 8, 2021 for adoption of E20 fuel as automotive fuel and issued mass emission standards for it. MoRT&H has also notified Safety standards for ethanol blended fuels vide GSR 343(E) dated May 25, 2021 on the basis of Automotive Industry Standard (AIS 171). It lays down safety requirements for type approval of pure ethanol, flex-fuel and ethanol-gasoline blended vehicles in India.

Flex Fuel Engine technology (FFE) is a well-accepted concept in Brazil, representing over 80 per cent of the total number of new vehicles sold in the country (2019). The Flex fuel vehicles used in Brazil operate with E27 or E100 Hydrous ethanol or any blend between these two. The vehicle technologies for ethanol are already proven along with the compatible fuel system globally. So, the selection and optimisation of technology for the engine has to be undertaken considering the availability of fuel ethanol.

Regulatory Status of Ethanol as a Fuel: 

(i) E5 [blending 5 per cent Ethanol with 95 per cent gasoline was notified in GSR 412(E) dated 19.05.2015 by MoRT&H. The rubber and plastic components used in gasoline vehicles produced since 2008 are compatible with E10 fuel.

(ii) E10 [blending 10 per cent Ethanol with 90 per cent gasoline was notified in GSR 881(E) dated 26.11.2019 by MoRT&H. The rubber and plastic components used in gasoline vehicles are currently compatible with E10 fuel.

(iii) The use of E85 (85 per cent ethanol by volume) was notified in GSR 682(E) dated 12.07.2016 for 4 wheeler vehicles, 3 wheelers and 2 wheelers. E100 (pure ethanol) for use in gasoline vehicles and ED95 [95 per cent ethanol and 5 per cent additives (co-solvent, corrosion inhibitors and ignition improvers)] for diesel vehicles have also been included in the same notification. The emission standards of E85 and E100 fuels have also been notified.

Ethanol production from sugarcane, wheat, rice and corn has already been started in India. Are there any other viable ways through which ethanol can be produced? Has the government validated any technology for the production of biofuels?

Molasses is recognised as the basic raw material for ethanol production, but in the last few years, standalone grain-based distilleries have also come forward to produce ethanol. In the current year, till June 2021, 160 crore litres of ethanol has been produced by using sugarcane and approximately 20 crore litres have been produced by using surplus rice and damaged food grains/maize. If we have to achieve the target of E20, then India needs to produce 1500 crore litres of ethanol every year by 2025. To achieve this production target 760 crore litres of ethanol can be made with sugarcane and for balance 740 crore litres of damaged food grains/maize can be utilised. Substantial quantities of barren and rain fed land can be brought into cultivation for maize in particulars. This technology of making ethanol by using food grains/maize is proven and tested.

What inputs are required for the growth of the biofuel industry in India?

Ethanol Blending with Diesel:

This year we have imported 1850 lakh MT petroleum of around $55 billion. To reduce this we need to increase usage of Ethanol, Compressed Natural Gas (CNG) and Electric Vehicles (EVs). In the very near future we should have target ethanol blending in diesel as well apart from petrol.       

Tax Benefits:

Globally, vehicles compliant with higher ethanol blends are provided with tax benefits. A similar approach may be followed so that the cost increase due to E20 compatible design may be absorbed to a certain extent, as is being done in some states for promoting EVs.

In order to bring predictability and to encourage investment by entrepreneurs in terms of expansion/new ethanol capabilities, the government may declare a floor price of ethanol for five years with an escalation clause for purchase by OMC’s.

How will the Government make an ethanol economy of Rs 2 lakh crore in the next five years?

As we have preponed 20 per cent ethanol-blended petrol to 2025, this will increase our demand by 1000 crore litres more. This becomes a Rs 65,000- 75,000 crore economy. On the other hand, ethanol blended diesel, E100, flex fuel vehicles will shoot up the economy and it will cross Rs 2, 00,000 crore within five years.

                                                                                                                                                                                    Dipti Barve                                                                                                                                                                                                 dipti.barve@mmactiv.com

                                                        

                                                                                                                                                                       

 

Nitin Gadkari, Union Minister, Road Transport &

Interaction, Sustainable Energy

Eduardo Leão de Sous, Executive Director, UNICA shared his views on the global ethanol market and the way forward with AgroSpectrum. Edited excerpts; 

 The Uniao da Industria de Cana-de-Acucar (UNICA) is the leading association for the sugarcane industry in Brazil, representing 50 per cent of all sugarcane production and processing in the country. Its member companies are the top producers of sugar, ethanol, renewable electricity and other sugarcane-derived products in Brazil’s South‐Central region, the heart of the sugarcane industry. In 2018-19, Brazil produced 621 million tonnes of sugarcane, which yielded 29 million tonnes of sugar and 33 billion litres of ethanol. That makes Brazil the world’s second largest sugar and ethanol producer, behind India and the United States, respectively. Eduardo Leão de Sous, Executive Director, UNICA shared his views on the global ethanol market and the way forward with AgroSpectrum. Edited excerpts;

How is UNICA contributing to the production of biofuels such as ethanol?

UNICA represents around 60 per cent of the total sugarcane and ethanol production in Brazil, a country which has a vast experience in using ethanol for the last 50 years. During these five decades, we have not only highly benefited from the use of ethanol as a fuel on a large  scale but have also learnt relevant lessons in terms of addressing appropriate technologies and public policies for ethanol. Consequently, UNICA, together with the Brazilian government, has been working closely with the stakeholders in India and other countries, to share this experience and technology know-how.

Specifically with India, we have had a close relationship for the last 10 years at various levels, from the Indian sugar private sector, represented by the Indian Sugar Mills Association (ISMA) to the automobile industry, Society of Indian Automobile Industry (SIAM), including the government and other major stakeholders.

In this effort, I have personally been in India many times. Last year, for instance, before the mobility restrictions imposed by the pandemic, in mid-March, I had been in Delhi three times. First, in January, together with our presidential mission, during the Republic Day, during which our two governments signed the Memorandum of Understanding to cooperate on clean energies. Then, we came back in mid-February to participate in the Auto Show, in Greater Noida, wherein we launched the campaign ‘Bring Back My Blue Sky’ to educate and demonstrate the benefits of ethanol to the environment by reducing CO2 emissions and eliminating particulate matter from the atmosphere. Finally, we have also organised, together with ISMA and the Brazilian government, a summit called ‘Ethanol Talks’ where stakeholders from both countries engaged and debated on the solutions for adoption of ethanol. The blend of ethanol in gasoline, when adopted, through clear and long-term public policies, can provide an instant decrease in Green House Gas (GHG) emissions. Additionally, it has a lot of economic benefits as well such as the reduction of oil import bills. India currently imports 80 per cent of its oil requirements. Brazil used to have a similar situation in the past but, due to the use of ethanol, we have managed to reduce our oil imports to as low as 15 per cent of our consumption.

Brazil has spent the last 50 years improving its production methods and has gone through different public policies and their consequences. This makes us a big testing field, and we are willing to share knowledge and help India and other countries to develop a robust ethanol policy that will go a long way to create a sustainable ecosystem.

UNICA is a part of a recent MoU signed between Brazil and India to develop a robust ethanol policy. How will UNICA help divert the surplus production of sugarcane to produce ethanol in India?

The Memorandum of Understanding (MoU) was signed last year between the two governments (India and Brazil) to promote the use of biofuels and assist India in boosting its ethanol programme. It envisages technical collaboration and exchange of technology in terms of second-generation ethanol and flex-fuel automobile engines. In terms of diverting surplus sugarcane in producing ethanol, we can contribute with the Indian government in presenting the Brazilian case study to highlight that it has benefited from a similar diversion. In Brazil, all the sugar mills are attached to distilleries in such a way that they have the option of producing either sugar or ethanol depending on the price ratio between the two products. This is an interesting mechanism to reduce market risks, thus increasing the chance of having better revenue.  Such is the benefit and the beauty of this flexibility that ethanol can bring to the sugar industry.

The Government of India has proposed a target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030. What inputs are required to achieve the target of increasing the production of ethanol and biodiesel in India?

Predictability is the name of the game here. The more predictability you have, the higher the chance of having a successful ethanol programme. Clear rules in place will allow investors and entrepreneurs to make their decisions based on the rules that they have now and will have in the near future.

One of these mechanisms is to have a mandatory ethanol blend plan so that the mills will know that the demand will be there. In Brazil, for instance, all petrol has a 27 per cent mandatory ethanol, and this is a fundamental tool to provide predictability. 

Another important mechanism is to have a clear pricing and tax mechanism. The government must clearly establish the rules of the pricing and could also consider some tax differentiation between fossil and renewable fuel that recognised the positive externalities of the latter. This is a very important signal to the producers and allows them to plan investments appropriately.

Another important mechanism could be to construct an attached distillery to a sugar mill. Therefore, with these policy mechanisms, the private sector will have the adequate environment to put a plan on investment in distilleries to guarantee the production of ethanol and to provide the required infrastructure for that.

Ethanol-blending is a low hanging fruit for India because all the feedstock, i.e. the sugarcane, and the infrastructure for distribution is already in place. India is currently the second largest sugarcane producer, from which you can extract the juice to produce ethanol. Moreover, the blending of ethanol to gasoline is already taking place in different levels of mixture depending on the region of the country. But the government of India should ensure a 20 per cent mandatory blend all over the country. India has all the conditions required to quickly implement a higher level of ethanol blend.

 What is the status of the global ethanol market?

In the case of ethanol, the production is still very concentrated in two countries, Brazil and the US. Together, we produce more than 80 per cent of the total ethanol in the world, the reason why it would be interesting to see other countries producing and consuming ethanol. In fact, this is where India can play an important role and take the lead in Asia.  As mentioned earlier, India has all the conditions required to become an important player not only in terms of ethanol consumption but also in terms of its production.

The steps that India is currently taking are important in shaping its domestic ethanol market but we still must work on the internalisation of the ethanol market. And this should happen in countries that present competitive and comparative advances in production such as the ones in tropical and subtropical regions. If more countries produce ethanol, more countries would be encouraged to promote its consumption, as it would reduce the dependence on just two countries, such as Brazil and the US, in case they need to import the biofuels.  

What is the impact of COVID-19 on the global ethanol market and what is the way forward?

The major impact of the pandemic on the global ethanol market was related to isolation measures. Due to the lockdown imposed in the majority of the countries, people stayed at home and did not use cars. The result was a sharp reduction in demand for fuels in general, thus negatively impacting ethanol demand and prices. But with the acceleration of vaccination worldwide and the opening up of economies, the demand for ethanol is already picking up.  Another important impact was a better understanding of the negative impacts of the use of fossil fuels on greenhouse gas emissions and air quality. With the lockdown in large cities, there was an impressive reduction of these two pollutants, which reflected in much better conditions for the environment and public health.

What are the opportunities in the biofuel industry in India?

India has all the conditions required to quickly increase the supply of ethanol. It can easily divert the juice that has been used to produce surplus sugar to produce ethanol. This would be a market solution for India’s sugar industry, which currently relies on subsidies to export those sugar surpluses. There are several benefits to adopting and increasing the usage of ethanol.

Firstly, using ethanol as vehicle fuel can eliminate particulate matter in the air, which will reduce air pollution in large Indian cities and thereby the occurrence of lung and heart diseases among citizens. Secondly, it could benefit from the reduction of GHG (Green House Gas) emissions, as it is currently the third-largest emitter of CO2 in the world.

Finally, it would also reduce dependence on imported oil, which is currently more than 80 per cent in India, while enhancing the rural economy. All in all, we see a lot of opportunities for India to have a sound ethanol policy. It is a win-win game.                                                                                                                                                                                                                                                 Dipti Barve                                                                                                                                                                                         dipti.barve@mmactiv.com

 

                                                                                                                                                                              

                                                                                                                                                                    

Eduardo Leão de Sous, Executive Director, UNICA

Acquaculture, AgroPolicy, Agrotech

The MoU will involve exchanging the information on customised machinery, feed formulations involving macro and micro-nutritional parameters etc

The ICAR-Central Institute of Brackishwater Aquaculture, Chennai recently signed a Memorandum of Understanding (MoU) with the Aqua-Farmers’ Producers’ Organisation (FPO), Betterwell, Cochin, Kerala.

Dr KP Jithendran, Director, ICAR-CIBA, Chennai and Johns James, Director, Betterwell signed the MoU on the behalf of their respective organisations.

Dr Jithendran stated that the institute’s strength lies in developing and commercialising several feed technologies to the sector across the country from Northern Punjab to Southern Tamil Nadu.

James highlighted the aim of the company to provide cost-effective feed to the farmers, with the concept of Factory-to-Farm.

The MoU was aimed at providing technical support on the fish feed processing to develop the customised fish feed formulation for catering to the pressing demands of poor and marginal farmers of Kerala. The MoU will involve exchanging the information on customised machinery, feed formulations involving macro and micro-nutritional parameters, feed processing and testing of the identified feed ingredients and finished feeds.

The MoU will involve exchanging the information

Agro chems – Chemicals, Finance, Seeds

The Company registered double-digit percentage gains in Latin America and Asia/Pacific as well as significant growth in North America after adjusting for currency and portfolio effects  

 The Bayer Group registered strong growth in the second quarter of 2021. “Sales at all divisions increased by a double-digit percentage after adjusting for currency and portfolio effects, and we expect this positive sales momentum to continue in all our businesses. We are therefore upgrading our full-year guidance, and now anticipate higher sales and core earnings per share than in our previous forecast,” said Werner Baumann, Chairman of the Board of Management, on Thursday.

In the agricultural business (Crop Science), Bayer increased sales by 10.6 percent (Fx & portfolio adj.) to 5.021 billion euros, with growth in all regions. The division registered double-digit percentage gains in Latin America and Asia/Pacific as well as significant growth in North America after adjusting for currency and portfolio effects. Fungicides (Fx & portfolio adj. plus 22.9 percent) and Herbicides (Fx & portfolio adj. plus 16.2 percent) achieved particularly strong gains. Fungicides registered a significant increase in volumes, primarily in Latin America thanks to the Fox Xpro™ product, and also in North America due to the launch of new products such as Delaro Complete™. The increase in sales at Herbicides was driven by increased volumes and prices, especially in North America, which saw higher volumes for XtendiMax™ and increased prices for Roundup™. Business was also up at Soybean Seeds & Traits, which recorded growth of 9.1 percent (Fx & portfolio adj.) thanks to higher volumes in North America. Sales at Corn Seed & Traits advanced by 8.6 percent (Fx & portfolio adj.), with business benefiting in particular from increased volumes in Latin America and higher prices in North America.

EBITDA before special items at Crop Science decreased by 25.4 percent to 1.018 billion euros, giving a margin of 20.3 percent. Higher prices and volumes along with contributions from ongoing efficiency programs only partly offset an increase in costs, and particularly in the cost of goods sold. Earnings were also diminished by a negative product mix, currency effects of 111 million euros, and the later receipt of license revenues.

The Company registered double-digit percentage gains in

China, Supply Chain, Trade

The order is for dried whole and sliced Shiitake mushrooms and dried black fungus

China-headquartered Farmmi, an agriculture products supplier, has announced that the company’s subsidiary Zhejiang Forest Food Co won a multi-product order for export to Israel. The latest sales win is for dried whole and sliced Shiitake mushrooms, and dried black fungus.

Yefang Zhang, Farmmi’s Chairwoman and CEO, commented, “We have emerged from a challenging period ready for growth, customer development and ongoing capacity expansion plans. We are seeing increased demand levels in China and worldwide, as we position Farmmi for accelerated revenue and profit growth. We are making steady progress and are pleased with our success in growing revenue at existing customers, as evidenced by our latest sales win, and in attracting new customers seeking high-quality agricultural products. As a proven large-scale manufacturer with a strong global brand and supply chain, we have considerable competitive advantages and expect an uptick in growth as we move through the year.”

The order is for dried whole and

Agrotech, Interaction, Sustainable Energy

Atul Mulay, President, Bioenergy, Praj Industries, shared his views on the status of ethanol production in India with AgroSpectrum. Edited excerpts;

Praj Industries is India’s most successful company in the field of biofuel and other bio-based technologies that was started as an enterprise under the name of Praj Counsel Tech, three decades ago. Founded in 1983 by Dr Pramod Chaudhari and made public in 1994, Praj Industries has an influence on five continents. Mainly focussed on providing and developing 2nd generation ethanol technology, Praj Industries is India’s leading manufacturer in engineering processes and projects. . Atul Mulay, President, Bioenergy, Praj Industries, shared his views on the status of ethanol production in India with AgroSpectrum. Edited excerpts; 

How is Praj contributing in attaining the government’s vision of 20 per cent ethanol blending in petrol (E20) by 2025?

As a flag bearer of the ethanol industry, Praj works on multiple fronts such as technology, ecosystem development, policy advocacy etc. to help fulfil the government’s vision of 20 per cent blending in petrol. End to end technology solutions for production ethanol offered by Praj inspire project developers and investors’ confidence for capacity building.

In line with government policy of expanded range of feedstock to boost ethanol production, Praj has developed technologies to process variety of feedstock such as sugary (C molasses, B heavy molasses and sugarcane juice), starchy (damaged/ surplus grains) and lignocellulose (agriculture residues such as wheat straw, rice straw etc.) to make ethanol projects technologically viable.

To improve commercial feasibility of ethanol plants, Praj Matrix, our R&D centre continuously works towards improving the process efficiencies and reducing energy and water footprints. We have been working closely with government agencies at state and national level to help formulate and rollout progressive biofuel policies.

By actively participating in the leading industry forums such as Confederation of Indian Industry (CII), Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA) etc., Praj has been furthering the causes of the biofuel industry by taking up important industry issues at appropriate government agencies for expeditious resolutions.

Being a global player, Praj is privy to ethanol industry’s global best practices which it shares with stakeholders from time to time with the objective of overall improvement of industry standards.

Praj recognises that success of E20 blending programme is contingent upon wholehearted participation of automakers. To ensure cooperation of the auto industry, Praj works closely with Automotive Research Association of India (ARAI), Pune, and OEMS for application development of advanced biofuels.

Currently ethanol blending in petrol is close to 10 per cent. To achieve the government’s target of 20 per cent by 2025, a significant capacity addition in the range of 1000 Crore Litres of ethanol is envisaged. Praj is highly optimistic about achieving this target with an integrated approach and close collaboration amongst the industry stakeholders.

Recently, Praj Industries bagged an order to set up India’s largest capacity syrup-based ethanol plant from Godavari Biorefineries Ltd (GBL) in Karnataka using ‘SHIFT’ technology. How SHIFT technology will minimise energy and water footprint, while maximising value for customers?

Using Praj’s proprietary SHIFT technology, we are able to significantly improve the throughput of ethanol plants and at the same time minimise water and energy footprints. In normal cases alcohol concentration after fermentation is usually 12 per cent; however our SHIFT technology takes the concentration to 15 per cent. Due to this, steam consumption during the distillation process is lower. For the syrup dilution process, instead of using fresh water, up to 50 per cent recycled spent wash is used.  This results in lower spent wash generation resulting in lower energy requirement (almost 40 per cent lower) for its concentration. Thus SHIFT technology contributes to overall enhancement of techno commercial feasibility.

Praj Industries has partnered with Hindustan Petroleum Corporation Limited (HPCL) for setting up a Compressed Biogas (CBG) project at Badaun in Uttar Pradesh using RenGasTM technology developed using proprietary microbes to produce CBG from rice straw. How will this bolster the growth of the biofuel industry in India?

Praj is honoured to partner with HPCL for the Badaun project that has capacity to process 35000 MT of rice straw as feedstock to generate 5250 MT of CBG annually. It will also generate high quality solid as well as liquid bio-manure for ferti-irrigation. This project has a potential to save up to 15000 MT of CO2 emissions per year.

HPCL Badaun CBG project will serve as a showcase installation by demonstrating end to end functioning of the value chain.  This will definitely inspire developers and investors to actively consider setting up CBG projects. This project will lay to rest any apprehensions about technology, feedstock management, energy off take etc.

India currently imports 45 per cent of natural gas which is further processed for producing compressed natural gas (CNG) that is extensively used in meeting India’s energy demand. India is taking concerted efforts to improve the share of gas in its energy mix to 15 per cent by 2030, from 6 per cent currently.

CBG is a high octane renewable gaseous fuel produced by processing bio-based feedstock such as press mud, agricultural waste etc. This not only helps in energy self-sufficiency but also helps in reduction in carbon intensity especially in the transportation and industrial sectors, thus helping conserving the environment.

In a first of its kind initiative in the world the Sustainable Alternative towards Affordable Transportation (SATAT) programme launched by the government, 500 plants are envisaged to be built over a period of five years. 

Praj Industries has developed innovative technology to produce Bio-bitumen based on lignin (one of the co-products resulting from the 2nd generation Ethanol plants). How can it contribute to the growth of the ethanol production industry?

Praj has always endeavoured to deploy innovative technology solutions to maximise the value of ethanol plants by developing value-added co-products from waste streams to increase project attractiveness.  

Bio-bitumen based on lignin, is one such co-products resulting from the 2nd generation Ethanol plants, paper making and also from Compressed Biogas plants. Praj has now developed a proprietary process (under patenting) to convert the crude lignin into Bio-bitumen.  It has potential to replace this fossil based bitumen and offer eco-friendly green bitumen. The binding and viscoelastic property of Bio-bitumen makes it useful for applications in asphalt.

Praj’s Bio-bitumen samples have been approved by Netherlands-based Circular Bio based Delta, one of Europe’s premier consortia for scale up in Asphalt on a Dutch test strip on the road. 

What inputs are required for the growth of the biofuel industry in India?

Sustained Policy support: The government has already taken various strategic interventions to boost the ethanol production and consumption in the country.

Demand visibility: The government has recently released a five year roadmap while advancing E20 target by five years to FY 2025. This has created ethanol capacity building opportunity.

Attractive pricing: Government has announced differential pricing for ethanol based on different feedstock to facilitate financial viability of projects.

Feedstock availability: The supply chain for 1G ethanol production from sugar is well established. Different sugar mills have their own ethanol production capacity. Recently the government has permitted use of starchy feedstock (surplus and damaged grains) for ethanol production. Starchy feedstock from Food Corporation of India (FCI) will be made available to ensure uninterrupted supply.

Advanced technologies for ethanol production by processing bio based feedstock in an efficient manner will facilitate project viability.

What are the opportunities in the biofuel sector in India? What is the future of Biofuels & 2G Ethanol technology in India?

Opportunities in the biofuel sector are abundant in India. Transportation fuel mix is undergoing a major transition by way of mainstreaming of renewable low carbon biofuels. While biofuels usage in surface transportation has already gained momentum, its application in the aviation sector is about to take off. Also application of marine biofuels in water transportation are ushering on the horizon.

Future of 2G ethanol technology in India appears very promising as it positively impacts the interest of stakeholders across the value chain delivering differentiated value. Biofuels produced from captive resources i.e. agriculture residues, facilitates energy self-reliance as it reduces dependency on the imported crude and associated forex bill. It also provides an additional revenue stream for farmers. Carbon neutral cycles triggered by combustion of biofuels help curtail health hazards attributable to the air pollution due to burning of agriculture residues and emissions from fossil fuel combustion.

India’s first batch of commercial projects based on 2G ethanol technology is under development. Praj is working on three numbers of advanced biofuel refineries in India, based on proprietary 2G enfinityTM technology. Construction and Installation activities are in full swing at all sites and we expect mechanical completion of the first project by February 2022. We expect to commission this plant in June 2022.

                                                                                                                                                                                          Dipti Barve                                                                                                                                                                                             dipti.barve@mmactiv.com

 

 

Atul Mulay, President, Bioenergy, Praj Industries,

IT, Warehousing

The one-stop solution in the post-harvest agri value chain will offer seamless user experience and reduced operational inconveniencies in trade execution

National Bulk Handling Corporation (NBHC) has announced the launch of its electronic application ‘Krishi Setu’, a one-stop solution in the post-harvest agri value chain offering seamless user experience and reduced operational inconveniencies in trade execution, through end-to-end digitised processes. NBHC has developed this advanced e-marketplace for agri commodities, which is a result of our commitment towards taking ahead the legacy of technology-led innovation to provide all variants of digitally enabled auctions and trades.

With a mission to empower the Farmer Community & Farmer Producer Organisations (FPOs), Krishi Setu is committed to providing knowledge-driven services for building efficiency in Auctioning/Trading of commodities, even with remote access. It directly links buyers and sellers electronically across the country and facilitates hassle-free transactions, purely through disintermediation.

Ramesh Doraiswami, MD and CEO, NBHC, said, “As a company is focussed on innovation, NBHC aspires to make Krishi Setu an Amazon-like e-market platform for agri-commodities and further improve the lives of Farmers & FPOs, enabling them to make informed decisions on marketing their products by providing them market access, transparency and post-harvest value-added services.”

Deepak Kumar Singh, Senior VP and Business Head, NBHC, said, “Krishi Setu is all set to make a difference to the agri value chain through its progressive amenities which combines farming, automation and digitalisation. The platform offers tailor-made solutions for effective process-driven risk assessment & mitigation, coupled with a digital financing option. Through Krishi Setu, we are enlarging our farm gate procurement services from farmers to clientele through disintermediation, by leveraging our tech-enabled operational capabilities.”

Through NBHC’s pan-India reach, deep industry knowledge and tech-enabled operational capabilities, Krishi Setu provides services for an extensive range of commodities including grains, pulses, cereals, oilseeds and spices across various locations.

The one-stop solution in the post-harvest agri

Agro Universities, Water, Webinar

The webinar will be held on August 6 at 3 pm

The International Commission on Irrigation and Drainage (ICID) will organise a webinar on ’Climate Smart Agricultural Water Management Best Practices, Policy FrameWork and Way Forward.’ The webinar will be held on August 6 at 3 pm. Participants can register at  https://us06web.zoom.us/webinar/register/WN_zbgpku7-Sm6jqMyTDe5dNA. 

 

The webinar will have Dr Kaluvai Yella Reddy, Vice President Hon. ICID & Dean (Faculty of Agril. & Engg & Technology), Acharya NG Ranga (ANGR) Agricultural University, Andhra Pradesh as the speaker. The panellists for the webinar are Dr Marco Arcieri (Italy), Vice President, ICID and Secretary General, Comitato Nazionale Italiano ICID (ITAL-ICID)@ICID, Dr K Palanisami (Emeritus Scientist @IWMI), and Er Anshuman (Associate Director, Water Resources Division @TERI (The Energy and Resources Institute).

The webinar will be held on August

Agro chems – Pesticides, Interaction, Trade

Discussions were held on pesticide management and identification of various pests

FASC Amritsar recently organised an interaction with basmati growers in the village Madhu Chhanga to minimise the pesticide residues and for enhancing its export. 63 basmati growers participated. 

 

Dr Rajiv Siwach, Chief GM, NABARD Regional Office, Punjab and Chandigarh UT was the chief guest of the occasion. He interacted with the basmati growers and listened to the problems being faced by the farmers. S Jaskirat Singh, DDM, NABARD also accompanied him on the occasion. 

 

Dr Kamaljeet Singh Suri, Principal Scientist, Department of Entomology, PAU, Ludhiana and also PI of the project emphasised the use of non-chemical methods and biological methods for the management of insect pests. He put stress on not to use banned insecticides which cause residue problems and hence put a hurdle in basmati export. He demonstrated how to use pheromone traps for catching adults of stem borer.

 

Dr Gurmeet Singh, DES (Entomology), FASC, Amritsar and Co-PI of the project welcomed the participants and said that pesticides cause health hazards and hence their use should be minimised. He also gave a lecture on identification, nature of damage, symptoms and management of various insect pests in basmati crop. 

 

Dr Narinderpal Singh DES (SM) advocated that the use of banned pesticides should be stopped immediately and also shared tips on the marketing of basmati. Dr Bikramjit Singh, DD(T), KVK, Amritsar was also present and made the farmers aware of the various facilities present and training run by the KVK. A field visit was also organised for the participants to make them familiar with various types of symptoms caused by insect pests and diseases. The camp ended with the vote of thanks by Dr Narinderpal Singh, DES (SM), FASC, Amritsar.

Discussions were held on pesticide management and

Agro Universities, Floriculture

The event was organised in collaboration with Punjab Skill Development Mission

The Skill Development Centre, Punjab Agricultural University (PAU), conducted Punjab Skills Competition 2021 in the skill categories of florist and landscape gardening. The event was organised in collaboration with Punjab Skill Development Mission.

Dr Kuldip Singh, Associate Director (Skill Development), informed that the state-level competition included 10 participants, five in each skill which was screened after preliminary testing. The winners of the event will get the opportunity to participate in World Skills Competition 2022, he said.

Dr Kiran Grover, Principal Extension Scientist (Food and Nutrition) and Kanwaljit Brar, Demonstrator, coordinated the event. They shared that this type of competition was conducted for the first time at Skill Development Centre and from now onwards it will be an annual feature. The participants of the competition were tested both through theoretical knowledge and practical skills, they added.

Dr Ranjit Singh, Assistant Professor (Floriculture) and Technical Coordinator, said that the florist must have the knowledge of post-harvest care and conditioning of the materials that they work with. The florists must apply principles and elements of design to composition and colour, additionally demonstrating ideas by the expert use of appropriate techniques, he added.

Dr Simrat Singh, Scientist (Floriculture and Landscaping), highlighted that a key role of a gardener is to design, install and maintain gardens and landscaped areas with a variety of plants, natural resources and other materials. Gardeners must be aware of the impact of such materials on the environment, he observed.

 Dr Rupinder Kaur, Professor, Skill Development Centre; Dr Ranjit Singh and Dr Simrat Singh, PAU experts; and Dr Gagandeep Kaur, a scientist from the Department of Fruit Science were the judges for the competition.

Gazal Rani and Harkirat Kaur won the first and second prize in florist skill. Navjeet Kaur, Jagjit Singh and Arshdeep Singh secured the first, second and third positions in landscape gardening skills, respectively.

The event was organised in collaboration with

Agrotech, Environment, IT

The partnership will further explore the blueprint for a health-forward and regenerative food system while accelerating Danone’s development of category-leading plant-based products

Leading global food & beverage company Danone and biosciences company Brightseed, creator of Forager artificial intelligence (AI) that maps and predicts the health impact of plant-based compounds, have announced a partnership to advance Danone’s plant-based expertise. Through a multi-year strategic collaboration, Danone and Brightseed will co-build an unparalleled understanding of the world’s most common crops and will explore lesser-known plant sources.

The partnership is to establish the blueprint for a health-forward and regenerative food system while accelerating Danone’s development of category-leading plant-based products. It builds from the success of last year’s partnership between Danone North America and Brightseed, demonstrating the value of this first proof of concept study. The partnership comes after Brightseed uncovered groundbreaking information with Danone North America, one of the world’s largest B Corp and maker of leading plant-based brands like Silk, So Delicious and Follow Your Heart.

Since last year, the two companies have focussed on identifying new biological connections between bioactives present in Danone’s raw plant sources to human health. In one single plant, in a matter of months, Forager uncovered 10 times more bioactives than previously known and 7 new health areas.

Bioactives in plants provide significant health benefits for humans, yet currently, less than 1 per cent of these compounds are known to science. Only 12 plants — crops such as corn, rice, wheat, soy, oats and others — account for 75 per cent of the global food system. With Brightseed’s capabilities using Forager, there is a wealth of untapped potential to more deeply understand how these plants maintain their health integrity as the cornerstone of the world’s food supply and explore new territories for plant-based innovations.

The partnership will further explore the blueprint

AgroPolicy, Trade

The move will give boost agricultural and processed food products exports, especially from Karnataka

The Agricultural and Processed Food Products Export Development Authority (APEDA) signed a Memorandum of Understanding (MoU) with the University of Agricultural Science (UAS) Bangalore. The move will give boost agricultural and processed food products exports, especially from Karnataka.

 

According to the MoU, the key areas of cooperation include developing technologies jointly with APEDA for advanced alertness, efficient and precision farming for enhancing quality exports; diversifying the export basket, destinations and boost high-value agri exports by establishing Brand India globally by increasing agri-exports from Karnataka under Agri Export Policy (AEP) announced by Government of India in 2018.

 

The collaborations between APEDA, which functions under the Ministry of Commerce & UAS, will also help in strengthening forward and backward linkages, participation in international exhibitions and fairs, branding and marketing, the establishment of market intelligence cell, developing traceability systems.

 

The APEDA and UAS, Bangalore will also facilitate the participation of farmers, entrepreneurs, exporters and other stakeholders to promote agri-businesses & exports, including B2B & B2C fairs to be organised in India and abroad and also mutually cooperate in market development and traceability in millets and millet products, fresh fruits like Mango, vegetables, jaggery, processed fruits and vegetables. Promotion and hand-holding of Farmer Producer Organizations / Farmer Producer Companies and linking them with international markets will also be part of the agreement between APEDA and UAS.

 

The MoU will also help in the development of agri entrepreneurs, technopreneurs capacity building, robust skill development and focus on building a collaborative approach for promoting export by the creation of product-specific clusters. 

 

APEDA and UAS, Bangalore have also agreed to work in close coordination to establish a centre of capacity building at UAS, Bangalore for farmers and motivate university students to promote agri-businesses for exports. A Post Graduate Certification course with the support of APEDA will also be started.

 

The MoU will also help in the development of an end-to-end sustainable value chain of horticulture/livestock produce with APEDA to promote better consignment commitment to importing countries and developing standard operating procedures of potential products of the state for exports.

 

The UAS, Bangalore will also contribute to the development of real-time solutions for pests and diseases (spongy tissue fruits flag, stone weevil, ralstonia aflatoxin etc.) and facilitate the zoning of animals and compartmentalization of poultry products. The university in association with APEDA will also develop a curriculum on organic exports as per NPOP guidelines for the students of Karnataka.

 

The MoU was signed in the presence of Dr M Angamuthu, Chairman APEDA and Dr S Rajendra Prasad, Vice-Chancellor UAS, Bangalore. The MoU aimed at utilising both the organisations’ expertise by mutually working together to synergise the activities in the interest of agriculture and allied sectors for bringing better value to the stakeholders.

 

 

 

The move will give boost agricultural and

Finance

The second-quarter adjusted EBITDA was $347 million

FMC Corporation in the second quarter of 2021 has posted a revenue of $1.2 billion, an increase of 8 per cent versus second quarter 2020. Excluding a tailwind from foreign currencies, the revenue increased 4 per cent organically. On a GAAP basis, the company reported earnings of $1.56 per diluted share in the second quarter, an increase of 11 per cent versus second quarter 2020. The second-quarter adjusted earnings were $1.81 per diluted share, an increase of 5 per cent versus second quarter 2020.

“FMC’s second-quarter financial results were driven by robust volume growth in all regions outside of EMEA, reflecting the strength of our underlying business, especially the significant contribution of new product launches,” said Mark Douglas, President and CEO, FMC.
 
The second-quarter revenue growth was driven by a 4 per cent volume increase and a 4 per cent FX tailwind. In Latin America, revenue increased 15 per cent (up 12 per cent organically), driven by strong insecticide and fungicide demand buoyed by favourable commodity prices and a slight benefit from FX. Asia grew revenue 20 per cent (up 13 per cent organically) driven by the strength of our insecticide portfolio, particularly for India and Australia, and FX tailwinds.

Sales in EMEA grew 3 per cent (down 3 per cent organically) driven by demand for our diamides and herbicides and FX tailwinds, offset largely by unfavourable weather early in the quarter and discontinued registrations. In North America, sales decreased 7 per cent (down 8 per cent organically), reflecting the year-over-year impact of a shift in volume demand by geography from our global diamide partnerships. Excluding revenue from the global partnerships, the region grew more than 20 per cent.

The second-quarter adjusted EBITDA was $347 million, an increase of 2 per cent from the prior-year period. This increase was driven primarily by volume gains, largely offset by accelerating increases in costs of goods sold.

The company continues to forecast full-year 2021 revenue to be in the range of $4.9 billion to $5.1 billion, driven by growth in Asia, Latin America and North America, representing an 8 per cent increase at the midpoint versus 2020. The revenue growth will be driven primarily by volume, as well as price increases and a modest FX tailwind. Full-year adjusted EBITDA is expected to be in the range of $1.29 billion to $1.35 billion, representing a 6 per cent year-over-year growth at the midpoint.
 
 

The second-quarter adjusted EBITDA was $347 millionFMC

Finance, Start ups

Several early investors and employees who sold their stocks realised nearly 70X returns on their investment

In the recently concluded Series C funding, agritech startup CropIn has raised $20 million of primary capital, taking the overall investment into the company to $33 million. This was followed by a secondary sale of $4.3 million and was open to the company’s employees and investors holding stocks. Several early investors and employees who sold their stocks realised nearly 70X returns on their investment.

In the first of its kind move in the agtech space, this is huge value creation for the employees and depicts the healthy growth that the company has been witnessing. A Secondary Sale or ESOP buyback ensures that employees receive benefits for the impact that they are creating with their work and contributes significantly to the growth of the company.

Vishal Kuchanur, one of the early employees at CropIn and one of the beneficiaries of the Secondary Sale, shared his perspective on working with CropIn, “My experience at CropIn as a technologist has been truly enriching and gratifying. Being in a then-unknown sector of Agritech and pioneering the space, CropIn is transforming organisations’ perception of digital technology in the Ag space. I wanted to work in an organisation which had a real impact in the lives of people and CropIn allowed me to ideate, experiment, and grow while building products that streamline agri value chains globally.”

CropIn was established with the vision of improving farmer livelihoods by harnessing the power of AI and Machine Learning through predictive analytics and modelling into agriculture. CropIn is determined to progressively achieve its goal of building a path for the employees’ overall growth and pursue opportunities to create wealth for the employees through the company’s stocks.

“It is both humbling and satisfying to enable tremendous return on investment and value for our early employees and investors who believed in us. Nearly 60 per cent of our employees hold stock options in the company. As a growing company we will be looking for other opportunities to expand our stock programs to provide this as an additional benefit for our employees and enable them to participate more actively in the growth journey of the organisation,” said Krishna Kumar, Founder and CEO, CropIn.

So far, CropIn has digitised over 16 million acres of farmland and enriched the lives of nearly seven million farmers, across 52+ countries covering 400 crops and over 10,000 crop varieties.

Several early investors and employees who sold