Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
3) Government has hiked ethanol procurement price for blending with petrol, allowed conversion of old sugar into ethanol. How is the move expected to address problems of the Sugarcane growers in the country? Discuss.(250 words)
Why this question:
The government approved an increase in the price of ethanol to be procured by public sector oil marketing companies (OMCs) from sugar mills for blending with petrol for the 2019-20. The Cabinet Committee on Economic Affairs (CCEA) also allowed conversion of old sugar into ethanol, which again is expected to help mills deal with the current overproduction in the sweetener and make timely payments to farmers for the cane delivered by them.
Key demand of the question:
The answer should explain the effect of recent initiative taken by the govt. to address the sugar woes of the country.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
In brief explain the recent initiatives taken by the govt. to address the sugarcane woes of the country.
What is ethanol and how do mills produce it?
How is using ethanol becoming a solution? Given the surplus sugar production in the country, the government has allowed mills to produce ethanol from molasses and directly from sugarcane juice. Explain that since the country is producing too much sugar and is importing oil, the ethanol-blending programme is beneficial both for mills and for the country’s balance of payments.
Conclude with way ahead.