Sugar cooperatives, who should predictably be peeved by Reliance Industries' plan to enter ethanol production, see no problem in private players vying with them for the common raw material -- sugarcane.
In fact, sugar millers have started looking at ethanol production as a means for enhancing revenues.
"We have not taken any formal decision in this regard. But, there is unanimity of opinion that ethanol production is a potential area of revenue for the sugar industry,"
Maharashtra Sugar Cooperative Federation MD Prakash Naiknaware said in Mumbai.
RIL Agri Business Chief Excecutive Sanjeev Asthana had at a meeting with the cooperatives attended by Agriculture Minister Sharad Pawar on Wednesday, said the company was looking at ethanol production from sugarcane-based molasses.
Besides, it was weighing options of using grain and sweet sorghum to produce ethanol.
The meeting saw presentations from RIL, Praj Industries, Ugar Sugar Industry of Karnataka and Ethanol Producers Association.
RIL has plans to set up three ethanol production plants at Kurkumbh, Usmanabad and Kolhapur in Maharahstra, where it plans to commence production by 2007-08.
Presently, thre are around 125 ethanol producers in the country, most of which are located in Maharashtra, Karnataka and Uttar Pradesh. With the present total capacity of 1.25 billion litre, the government is likely to introduce mandatory five per cent ethanol blending with petrol by this year.
The MSCF will be conducting internal meetings to come out with a formal decision on allowing private players to purchase cane from farmers.
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