Bioethanol Boom Opens New Avenues for Upland Farmers in Nellore District

 Nellore: The rapid expansion of bioethanol production units in SPSR Nellore district is set to transform cropping patterns in upland areas, offering farmers the viable alternative of growing maize, instead of traditional paddy. With four bioethanol plants either operational or under development, maize is emerging as a promising cash crop, backed by assured markets and financial support.

As part of the centre’s energy policy, 20 per cent bioethanol is now being blended with diesel to reduce dependence on imported fuel. Bioethanol is mainly made from maize, soya and broken rice. Since soya is not grown in the region and rice procurement remains under government control, ethanol manufacturers in AP are increasingly turning to maize as their preferred raw material.

Recognising this opportunity, Nellore district collector Himanshu Shukla said maize cultivation could prove a boon for farmers, particularly in upland areas. He revealed that bioethanol firms are ready to provide financial assistance to farmers under buy-back agreements, ensuring both input support and guaranteed procurement.

In Nellore district, Viswa Samudra Bio-Energy has already started bioethanol production in Venkatachalam mandal, while Kribhco is preparing to start operations in the same mandal. In addition, two more bioethanol units have signed MoUs with IFFCO to set up plants at the KISAN SEZ near Racharlapadu in Kodavalur mandal.

The surge in investments in bioethanol is linked to the government’s proposal to blend ethanol in aviation fuel, further boosting its long-term demand.

The two upcoming plants at the KISAN SEZ are expected to produce between 300 kilolitres per day (KLD) and 400 KLD of ethanol per day. Of the two, Ramshy Bio is establishing a grain-based distillery with a capacity of 370 KLD, along with a 7.25 MW captive power plant at a cost of Rs 356 crore. The other unit, Gayathri Renewable Fuels and Allied Industries will have a 200 KLD capacity with a 6 MW power plant, involving an investment of Rs 260 crore.

Together, the two units are expected to generate around 800 direct and indirect jobs.

Both companies are planning to source raw materials locally, using broken rice and maize, which will reduce transportation costs while assuring farmers a stable market. Importantly, they have agreed to extend financial support to upland farmers willing to cultivate maize under buy-back arrangements.

Collector Shukla underlined that the Viswa Samudra plant, spread over 24 acres, already produces 200 kilolitres of ethanol per day using broken rice, husk and crop residue as raw materials. It can also use maize as input for the production of ethanol.

Kribhco’s upcoming unit will also be capable of using maize. “The district will need to produce around 7.20 lakh metric tonnes of maize to meet the requirements of these bioethanol plants,” the collector underlined.

Pointing out that Kribhco and IFFCO are federations of agricultural cooperative societies, Shukla encouraged Nellore farmers to form cooperatives in case they want to shift from paddy to maize. This will enable them to access institutional support.

IFFCO’s Kisan SEZ CEO T. Sudhakar said their organisation, a network of over 36,000 farmer cooperatives across the country, is offering special concessions to agriculture-based units.