IFAD/FAO/ICRISAT

Global Consultation of Pro-poor Sweet Sorghum Development for Bio-ethanol Production

Presented by

Dr. Palaniswamy, Managing Director

Rusni Distilleries Pvt. Ltd.

Andhra Pradesh, India

Rome, Italy

8th & 9th Nov 2007

Debuting “The Sweet Reality”• Engineer by profession & global exposure

• Innovations on hobby basis in the US

• Proactive AP government support

• Ventured in India on passion

• ABI-ICRISAT timely support

• Established the industry

• Pioneered the concept on crop production and ethanol production

• Received “Life Time Achievement Award” from Hon’ble Prime Minister of India Sri Dr. Manmohan Singh.

• Received “Rashtriya Udyog Ratan Award” from International Organisation for Business Research & Development in the year 2005.

• Going global (Africa & Asia)

“Enhancing Energy Security by Empowering the Farming Society”

VISIONVISION

To improve the well being of farmers and rural community, contribute to environmental

improvement by industrialization of ethanol from

sweet sorghum.

Introduction Introduction

Pioneer in producing Sweet Sorghum Ethanol Globally.

Economized way of producing Ethanol through smart distillery process.

Production of Bio Fuels and Fuel Ethanol

Production process is patented in USA by the Promoter

Project commissioned in Sangareddy A.P., India

40 KLPD Plant producing Ethanol, ENA and Phrama Grade Alcohol.

Command area development of Sweet Sorghum in 2000 acre with the

support of Agri-Business Incubator@ICRISAT

International quality of Fuel Ethanol achieved in competitive price.

Competitive AdvantagesCompetitive Advantages

Non-Molasses based Ethanol production

Competitive cost of production

Baggasse based captive power generation

Zero liquid effluent discharge

Sulphur free Ethanol-Contribution to the conservation of

pollution

Smart Distillery - Production of Ethanol round the year

Plant production details

Requirements Units

Ethanol day-1 (kl) 35-40

SS stalks required day-1 (t) 800-875

Stalks required for 105 days (t) per season 84000-91875

Area required (rainy season) ha 2300-2600

Area required (postrainy season) ha 3700-4200

Total sweet sorghum area required (ha) 6000-6800

No. of small farmers1 to be involved 3000-3400

1. Small farmers: 2 ha holdings in India.

As a crop As ethanol As stillage

• Shorter gestation

period

• Dryland crop

• Greater resilience

• Farmer friendly

• Meets fodder/ food

needs

• Eco-friendly process

• Superior quality

• High octane

• Automobile friendly

(up to 25%)

• Higher biological value

• Rich in micronutrients

• Use as feed/for power

cogeneration

Sweet sorghum scores over feedstock'sSweet sorghum scores over feedstock's

• Sweet sorghum has higher (90-92%) fermentation efficiency than sugarcane (85-88%) in addition to higher crushing efficiency (85%)

• Requires low energy (1/4) and less (1/2) machinery cost

• Less effluents (2-3 lit/lit of ethanol) compared to grains (18 lit/lit of ethanol)

Partnerships for the poorPartnerships for the poor

Rusni Distilleries tie-up through

Agri-Business Incubator -ICRISAT

Agri Business Incubator @ICRISAT Agri Business Incubator @ICRISAT Joint Venture with Department of Science and Technology(GOI).

Commercialization of Agriculture Technology.

Initiate innovative concepts & promote Entrepreneurs

Co-ordinate with National and International R&D Centres to facilitate Agri-Tech-Transfer.

Educating & training farmers about the cultivation of Sweet Sorghum jointly with Rusni Distilleries (P).Ltd

Rusni Distilleries Pvt. Ltd. have entered into an MOA with ICRISAT for seed development and supply chain management through extension services for 60,000 tons of Sweet Sorghum Stalks per annum per crop.

ICRISAT developed 5 Cultivars of varieties and Hybrid of Sweet Sorghum for Rusni Distilleries with high brix content.

Assisted in command area development of Sweet sorghum in 2000 acres.

Business development support for expansion in Africa & Asian Countries

&&

Raw Materials (Sweet Sorghum Stalks)

Sweet Sorghum is the best suitable raw material as it does not compromise on food security.

Farmers can easily adopt sweet sorghum cultivation.It can be cultivated all throughout the year in tropical climate

under irrigated conditionsTotal utility– Stalks ,Grains and baggaseIn rain fed cultivation excess availability of stalks can be

converted into JaggeryFarmers can earn Rs.4000 (~US$100) plus per acre per crop

(Promised Less)

(Sweet Sorghum Syrup/Jaggery)Sweet Sorghum Syrup/Jaggery made from Sweet sorghum

stalks juiceTechnical know how can be provided to farmers above 100 K.M

radius for producing jaggery/Syrup from Sweet Sorghum

Sweet RealtySweet Realty

Farmer Name: Ramesh Rao

Village Name: Gunthapally

Acreage: 2 Acres

Stalk supplied: 49.7 tonnes

Total Income: Rs. 29,874 (US$747)

Input cost: Rs. 1874 (US$47)

Net gain: Rs. 28000 (US$700)

Farmer Name: Ramesh Rao

Village Name: Gunthapally

Acreage: 2 Acres

Stalk supplied: 49.7 tonnes

Total Income: Rs. 29,874 (US$747)

Input cost: Rs. 1874 (US$47)

Net gain: Rs. 28000 (US$700)

Promised Less Delivered MorePromised Less Delivered More

Contract Farming

Rusni Distilleries enters into Tripartite Agreement involving farmers, Bank and Company for cultivation and supply of Sweet Sorghum. (in operation)

Cooperative Farming

To promote farmers cooperative to cultivate, crush and produce Sweet Sorghum syrup that could supply to the factory for production of Ethanol. (in pipeline)

Procurement of Raw Materials

CHALLENGES IN CONTRACT FARMING

Improper cultivation and poor quality of crop.Short harvesting window and peak supply of raw material

results in wastage.Poor availability of labor's for peak harvesting period.High cost of logistics due to high volume and low weight

of Sweet Stalks.Loss of juice and weight during storage and transportation.

FUTURE STRATEGY

Cooperative Farming And Decentralized syrup Mnf. To promote farmers cooperative to cultivate, crush and produce Sweet

Sorghum syrup that could supply to the factory for production of Ethanol. (in pipeline)

Highlights of cooperative farming and decentralized units More than 100 acres in a village compressing of more than 10 farmers. Farming on cooperative basis. Small-scale Crushing Unit At Village Level operated under cooperative basis or

micro enterprise mode. Company needs 50 micro enterprise for syrup making through buy back

arrangement and can encourage rural employment in ANDHRA PRADESH.

DECENTRALIZED MODEL FOR FARMERSCOOPERATIVE FARMING

DECENTRALIZED UNITS

LEAF STRIPPERS

CRUSHERS

SYRUP MAKING EQUIPMENTS

LEFT OVER BAGASSE AND BLACK GRAINS COMPRESSED FOR ANIMAL FEED

TRANSPORTATION

FACTORYSTORAGE TANKERS

LEAF STRIPPERS AT FARM LEVEL

CRUSHERS AT FARM LEVEL

ADVANTAGES OF DECENTRALIZED MODEL• Minimize The Loss Of Juice And Time

• Syrup Can Be Stored Up To 9 Months

• Farmers gain ( win – win situation) Additional profit through co-op farming (reduced cost). Additional profit through co-op syrup production unit. Early harvesting and returns.

• Left over bagasse, leaves and black grains (not for human consumption) is compressed and packed for animal feed.

• Farmers benefits through marketing of the animal feed.

• Farmers can take the stake in the small scale units which can be financed by the company or other financial institutions.

• Reduces inventory cost and logistics cost.

• Operation of the plant around the year.

Expectancy of the Industry

• Training & education to farmers

• Better Crop management

• Farm Mechanization

• Investments in Industrial R&D

• Optimizing raw material sourcing & costs

• Integrated-Strengthened Public-Private partnership

The road ahead• Sweet sorghum: Ensures both food and energy security and a clean

environment

• There are challenges in contract farming of Sweet Sorghum.

• Cooperative farming and Decentralized Syrup making is ideal alternative and can compliment to the industrial production.

• It is a win-win situation for the farmer and industry.

• It would be ideal Public-Private-People Partnerships

Thank YouThank You

Further details contact :

Dr. A.R. Palaniswamy

rusnispirit@rediffmail.com

Further details contact :

Dr. A.R. Palaniswamy

rusnispirit@rediffmail.com