Financial Daily from THE HINDU group of publications
Friday, Jul 16, 2004
Financial Daily from THE HINDU group of publications Friday, Jul 16, 2004 |
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Agri-Biz & Commodities
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Agricultural Policy Industry & Economy - Sugar TN move to promote sugar beet crop tickles industry R. Balaji
Chennai , July 15 THE Tamil Nadu Government's decision to promote sugar beet cultivation for ethanol production has enthused the sugar industry, which, however, feels that there is a need to proceed with caution. The decision is a step in the right direction particularly in diversifying raw materials for ethanol production, say experts. A clear strategy formulated through discussions between the industry, officials and technologists is essential before any commitment is made, they say. Of the three crops - sweet sorghum, jatropha and sugar beet - that the Government has announced that it would encourage, sugar beet has kindled the greatest enthusiasm. The Government recently said that it would encourage these `water efficient' crops as an alternative to sugarcane. The announcement comes against the backdrop of severe water shortage due to failure of monsoons. According to industry sources, sweet sorghum and jatropha are ideally suited for wasteland development - as it is being attempted in Andhra Pradesh with jatropha. The Andhra Pradesh Government is allotting its wastelands to farmers, and encouraging those with land certified as wasteland and unsuitable for other crops, to cultivate jatropha. It is also extending assistance of about Rs 17,000 an acre. Both these crops can only act as a source of fuel for blending with automobile fuel. Though jatropha seeds can also yield glycerine, only the fuel oil makes it viable. In this context, the lack of clear policy guidelines on purchase and marketing of the fuel oil extracted from jatropha is a hurdle to its gaining widespread acceptance. The industry cites the unhappy experience with oil companies in the ethanol blended petrol programme. Clear guidelines need to be spelt out, marketing has to be made available for farmers and the industry has to commit funds. The tree starts yielding significant quantities of seeds only from the fifth year though some yield starts from the third year. Sweet sorghum can serve as an intercrop for jatropha. If jatropha has to be taken up for cultivation in farm lands, the farmer will have to be supported in the initial years when the crop will not provide any income, they say. As for sugar beet, which is a source of alcohol and sugar, the crop is untested on a large scale in the agro-climatic conditions in the South. Tamil Nadu is pioneering the crop in this region. It is a major crop in Russia and Europe, but according to sources, sugar beet seeds are available from Swedish and Israeli companies for cultivation here. A couple of sugar mills in the State have experimented with the crop and are exploring further opportunities. The positive point is that sugar beet juice can be blended with sugarcane juice and processed. The sugar mills and distilleries need to put in a slicer and a diffuser to extract the beet juice. Investments are bound to be heavy and the economics have to be worked out, say experts.
More Stories on : Agricultural Policy | Sugar | Tamil Nadu | Horticulture/Fruits & Vegetables
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