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Global commodity giant Olam Agri is investing approximately $60 million in a multi-input bio-ethanol unit at Rajgoli, Maharashtra. This new facility will complement the companys existing sugar factory in Rajgoli, which has a crushing capacity of 4,000 tonnes per day.
Olam Agris decision to invest in bio-ethanol is driven by recent government policies mandating blended fuels, including the B10 to B20 mix. “With the push for mixed fuels and the blending mandates, integrating bio-ethanol production seemed like a strategic move. Our $60 million investment in a multi-input distillery will allow us to adapt to fluctuations in cane production by substituting with corn if necessary,” said Muthukumar Neelamani, Group CFO of Olam Agri, during the Samunnati FPO Conclave in Hyderabad.
The new bio-ethanol unit will effectively double Olam Agri’s sugarcane crushing capacity to about 8,500 tonnes per day and is expected to be operational by March next year.
Headquartered in Singapore, Olam Agri operates in over 30 countries, dealing in commodities such as rice, cotton, pulses, and more recently, bio-ethanol. “India is a key market for us, and we are expanding our footprint here,” Muthukumar added.
The company is also increasing its engagement with farmer producer organizations (FPOs) in rice. Following a successful pilot last year with around 6,000 farmers in Madhya Pradesh, Olam Agri has tripled its FPO involvement this year, now working with six FPOs and reaching approximately 11,000 farmers. The company aims to replicate this model in the sugarcane and corn sectors.
Since 2011, Olam Agri has been working with about 25,000 sugarcane farmers, collaborating with agencies such as IFC and Solidaridad to promote sustainable agricultural practices and enhance yields. |
