Godavari Biorefineries Expands Ethanol Horizons with New Grain-Based Distillery

India's Godavari Biorefineries is set to commission a new 200 KLPD grain-based distillery by the June quarter, in an effort to diversify its ethanol production processes. The move allows the facility to use both sugarcane and corn, adapting to shifting market prices, according to Managing Director Samir Somaiya.

Operating in northern Karnataka, a significant corn-producing area, the company is part of a broader trend among Indian sugar mills shifting from sole reliance on sugarcane. This transition to grain-based distilleries seeks to maintain year-round production and minimize the impact of fluctuating sugarcane output.

A primary challenge for mills is the state-advised pricing for cane, which can squeeze margins during surpluses when sugar prices plummet but cane payments remain fixed. Somaiya emphasized the need to increase the minimum selling price of sugar to align with rising cane costs, ensuring mills can uphold their financial commitments to cane growers.