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July 13, 2009 | Jim Lane | Comments 1

Pakistan sugar officials say E10 ethanol mandate imposed without industry consultation

In Pakistan, execs from the Pakistan Sugar Mill Association and other industry organizations are saying that national government plans for E10 were formulated without industry consultation.

The government has infuriated sugar producers with a plan to increase the export duty on molasses to encourage more ethanol production. Iskandar M Khan, Chairman Pakistan Sugar Mills Association said that the government is asking industry to provide ethanol at 32 rupees per liter, with molasses exports at 45 rupees per liter. Meanwhile, oil company execs have said that infrastructure to transport ethanol is lacking.

According to OCAC, Pakistan produces 400,000 tons of ethanol.

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    1. Sounds like the early days of Indian ethanol. The Indian government had to threaten to import ethanol from Brazil in order to get sugar and molasses producers to cooperate. However the present lack of infrastructure and the toll of Pakistan’s war effort are more serious obstacles that will take time to resolve.

      Pakistan already has some modern regional ethanol/power plants in place and this may be the most feasible model to increase production in the near future.

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