Pakistan is passing through a stage where a major chunk of our hard earned foreign exchange is going down the drain through imports of petroleum products especially motor gasoline. It is time we should start planning about alternate substitute for fuel.
Molasses, the by product of sugar industry was mainly exported to European countries is now being converted into ethanol, since numerous distilleries have mushroomed up with in a short span of time Pakistan produces around 2 million tons molasses annually of which Europe is the main buyer. Major quantity of molasses imported by European countries is utilised as cattle feed.
The scenario has abruptly taken a U-turn as at least 10 distilleries have become operational and the molasses (being the raw material) for producing ethanol is consumed locally.
With the addition of another seven distillery units in pipeline the production of 2 million tons molasses will fall short of the requirement of these 17 distillery units roughly speaking one ton of molasses yields around 250 litres of ethanol, the recovery mainly depends on good quality of molasses i.e. the total sugars of molasses being 49 to 50 at brix of 89-90. Very recently letters of credit have been opened for import of Molasses, this attributes to the shortage of sugar cane crop which will eventually result in low production of molasses. This sudden topsy-turvy scenario has caused considerable resentment among the European molasses buyer community, which relies on molasses for cattle feed during the long winter spells.
The growing in house demand of molasses for the manufacture of the value added ethanol due to the mushroom growth of distillery units. If the present ethanol situation of cane crop under cane cultivation does not improve a good number of distillery units may go dry, this will cause a major financial set back to the industrialists who have put billions of rupees at stake. This calls for some serious planning to give boost to bring the export of this value added commodity on the right track. To cope with the demand of at least 15 distillery units we need 2.5 million tons of molasses which seems an up hill task unless the area under cane cultivation- increases.
Another break through (although belated) is the increase in production of anhydrous alcohol or fuel ethanol. Habib Sugar Mills have taken the lead and started manufacture of anhydrous ethyl alcohol which is being exported, other units are following suit Brazil, is already using fuel alcohol (Gasoline) in automobiles, since mid 70's India has recently adopted anhydrous alcohol as a fuel additive at a ratio of five percent an is saving valuable foreign exchange. By using ethanol fuel, the octane number of petrol will also improve and achieve higher compression ratio thus reducing harmful emission of dangerous carbon monoxide, improving engine performance and pollution free environment.
It is time our government should consider this option and use ethanol fuel additive owing to the rising petrol prices and save much needed foreign exchange.
The necessity for our government to give it a serious thought is due to the fact that the European Union (EU) has given the alcohol export business a big jolt by imposing anit - dumping duty on Pakistan ethanol.
The plea taken by the European Union (EU), imports of enormous quantities of ethanol from Pakistanis seriously injuring the domestic industry of late Pakistan was the leading exporter of molasses to European countries for the past many decades.
This sudden surge in ethanol export to Europe has compelled the European Union to legislate laws to curb this enormous inflow of Pakistan ethanol. It is heartening to note in a recent write up in the daily English paper that our government has placed the issue on the anvil to explore the possibilities for using anhydrous ethanol (Fuel grade alcohol) as a blending component, (OCAC) is also studying this option, thanks to the reservations imposed by the EU, which have coerced our industrialist community and the government to explore option to use ethanol as a blending component with petrol.
Our ethanol industry has come to stay and will continue our endeavours for exploring greener pastures for this value added product.
The government and the ethanol exporters will succeed in formulating a workable solution with the EU and the World Trade Organisation (WTO) ethanol export trade has gained considerable momentum and will flourish in the years to come and thus become a major helping hand in the nations economy.
The ministry of agriculture should come forward and emphasise the farming sector to enhance cultivation of sugarcane on better scientific methods achieve better per acre yield and follow the foot steps of Brazil and other countries, only then will achieve our goal.
In refined sugar and ethanol production. The remaining part of the act should be taken up by the ministry of petroleum and the Export Promotion Bureau to lead us to the path of prosperity.
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