“Farmer is benefitting from bioenergy sector; no food shortage” – Kushal Mittal, BCL Industries

1. Tell us something AIDA and its function precisely.

Kushal Mittal: AIDA was formed in 1953, and we have distillers from across the nation, whether that’s a sugar-based manufacturer or a grain-based manufacturer, or even some alcohol companies. So, we collectively are a joint platform for everyone to discuss, bring ideas, problems and solutions. We also communicate with the government whenever necessary and give our opinion in policy matters. We’ll continue to do so as the India bioenergy sector diversifies even further.

2. How do you assess the biofuels scenario in the country at present?

Kushal Mittal: The biofuel industry in the country has expanded for the past 10 years primarily because there was very good policy, and we’re continuing to see that policy happening. First, there was a very good roadmap that was brought together for E20 (20% ethanol blending in petrol). Then now we’re seeing schemes like Gobardhan to ensure that biomass or residual waste is converted into CBG. That further reduces our import dependency. And I think the future of India is to ensure that there is energy security and farmer gains via all these biofuels. We have seen and experienced that whether it’s a sugar farmer or a maize farmer – they have directly benefited from the ethanol policy.

3. As the biofuel industry expands rapidly, how does AIDA see its role in supporting industry growth and defining a roadmap?

Kushal Mittal: The roadmap would be to further help and educate our members on how byproducts of our industry can further become a source of revenue. Press mud was considered as non-revenue for the sugar industry a few years ago, but now that can be converted into CBG. So, there are new technologies that are coming, and we want to help educate our members and become a platform for discussion.

4. The ethanol controversy has reignited the food-versus-fuel debate. How do you see this situation?  

Kushal Mittal: See, I think food versus fuel is no longer a relevant debate, because India is sitting on a huge stockpile of grains; at times rotting in FCI godowns. I think it is unfortunate that it has become a debate. When it comes to grain, we are highly surplus. We have to ensure that our farmers’ yields increase, income goes up and I don’t see any deficit of grain even in the upcoming times because we have abundant fertile land. Our fertile land is more than that of China’s.

5. Why is it not relevant when sugar and maize price have soared up?

Kushal Mittal: See, maize is a part of the feed of the poultry industry. I fail to understand why this was not a topic of discussion five years ago when the farmer was selling their produce at Rs 11-12 a kg. Now that same maize farmer is getting, you know Rs 21-22 rupees a kg. Over 65% of our population is agrarian and if the price of maize goes up, a farmer is directly benefiting from it. Blaming ethanol industry in not correct. Soybean DOC prices are almost at an all-time low, and that is a huge part of poultry feed.

6. Tell us about sustainability efforts of BCL Industries.

Kushal Mittal: BCL Industries is one of the largest grain-based distillers in the country. Good fact about us is that we manufacture all our power at our Punjab unit from paddy straw. So, we collect over two lakh tons of paddy straw on a yearly basis, which prevents fire in more than 20,000 acres of land. We also have a biodiesel unit but currently no operational.

7. Is BCL Industries planning to enter biogas segment as well?

Kushal Mittal: Yes. We are looking into the Gobardhan Scheme and our primary source of raw material for biogas would be paddy straw, since we are already procuring huge amounts of paddy straw. We have understood the supply chain and the storage.

I think Gobardhan is a very positive scheme because it promotes biomass like paddy straw, cow dung, and even chicken litter and municipal waste. The offtake price for CBG is also quite attractive. The only biggest hurdle in this industry is that the bio-fertilizer that is created does not have much demand right now because other sources of fertilizer are heavily subsidized for a farmer. But the Government has launched a policy where they are trying to increase the demand for the bio-fertilizer.

8. What if the farmer is unwilling to purchase such costly manure? Where would you – as industry – dump this resource?

Kushal Mittal: Increasing demand for biofertilizers will take time. We will have to create awareness among farmers and explain its benefits. As consumer demand for organic produce increases, the importance of biofertilizers will also grow. At present, the carbon content in our soil is very low. When farmers are able to get better prices for organic produce, then biofertilizers will become increasingly important.

Ultimately, wherever consumers see a benefit, farmers and the industry also see an opportunity. So, organic farming will certainly be a major area for biofertilizer usage. At the same time, we as an industry will have to continue our efforts to create awareness.

9. What makes you enter CBG which remains most dicey Among all the biofuels?

Kushal Mittal: Biofuels have a huge role to play and CBG is an important part of that future. However, I do not see most CBG plants currently operating at their installed capacity. But I think the sector will gradually grow. No industry is completely foolproof. Whether I work in this sector or any other sector, every industry has its own challenges and risks. This sector also has its own challenges and risks.