Olam Agri to invest $60 mn in ethanol project in Maharashtra
Global commodity leader Olam Agri has revealed that the company is investing about $60 million in a multi-input bio-ethanol plant in Rajgoli of Kolhapur district in the state of Maharashtra.
At the Samunnati FPO Conclave in Hyderabad, Muthukumar Neelamani, Group CFO of Olam Agri, highlighted that recent government policies promoting mixed fuels and the transition from B10 to B20 make the company’s move into bio-ethanol production a strategic one. He mentioned that the company is investing close to $60 million in a distillery with multi-input capabilities. This allows them to switch between sugarcane and corn, depending on the availability of cane.
Olam Agri already operates a big sugar mill there having a crushing capacity of 4,000 tonnes per day.
Olam Agri aims to double its sugarcane crushing capacity to 8,500 tonnes per day with the addition of the new bio-ethanol facility, which is slated to begin operations by March next year.
Headquartered in Singapore, Olam Agri operates in more than 30 countries across sectors like rice, cotton, pulses, sugar, and now bio-ethanol. Neelamani said that India is a key market for the company.
The company is also expanding its collaboration with farmer producer organizations (FPOs) in the rice sector. After a successful pilot involving 6,000 farmers in Madhya Pradesh last year, Olam has scaled up its FPO engagement to include six FPOs and about 11,000 farmers. Neelamani indicated plans to replicate this model in the sugarcane and corn sectors.
Since 2011, Olam has been working with nearly 25,000 sugarcane farmers and has partnered with organizations like the IFC and Solidaridad to promote sustainable agricultural practices and boost yields.
Minister for Petroleum & Natural Gas Mr. Hardeep Singh Puri has revealed in an event in New Delhi that India’s ethanol blending program has saved India about $ 11.80 billion or Rs. 99,000 crore in foreign exchange since 2014. India has already achieved 15% of ethanol blending in petrol and the minister is hopeful that 20% blending target will be achieved in scheduled time period.
