Davangere Sugar Company Ltd updates on Ethanol Production in FY2024-25

During the Financial year 2024-2025, Davangere Sugar Company Limited plans to produce Ethanol primarily from maize and other damaged grains until the crushing season begins in October 2024. To maximize ethanol production, the company aims to procure larger quantities of maize from various regions across the country. Government policy currently encourages Ethanol production from maize, and the Central Government is in the process of establishing a National Coordinating Agency (NAFED) to procure maize from farmers and supply it to sugar factories for ethanol production. This initiative will benefit our factory and others by ensuring a sufficient supply of maize for continuous, year-round operations.

The Sugar and Ethanol industry has been steadily benefiting from government policies allowing the production of Ethanol from grain. Based on National News Reports, previously in FY 2023-2024, approximately 37% of ethanol produced in the country was produced from grain. However, in FY 2024-2025, grain based ethanol has contributed to approximately 51% of total ethanol produced in the country.

Additionally, our company is strategically partnering with surrounding village farmers by providing sugarcane seeds and other inputs at subsidized rates to help them receive higher sugarcane yields and enhance their commercial benefits. Company has initiated the process of providing plantation subsidies to further support the farmers. Company is targeting to achieve about 15000 acres of sugarcane cultivation for the forthcoming season.

Source : Equity Bulls

Keywords

DavangereSugarCompany EthanolProduction FY2025 Maize OtherGrains