IFAD/FAO/ICRISAT

1
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
2
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
  Honble 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)

3
VISION

• Enhancing Energy Security by
• Empowering the Farming Society

4
MISSION

• To improve the well being of farmers and rural
  community, contribute to environmental
  improvement by industrialization of ethanol from
  sweet sorghum.

5
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_at_ICRISAT
• International quality of Fuel Ethanol achieved in
  competitive price.

6
Competitive 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

7
Plant production details
8
Sweet 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)

9
Partnerships for the poor
Rusni Distilleries tie-up through Agri-Business
Incubator -ICRISAT
10

Agri Business Incubator _at_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 RD
  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

11
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 conditions
• Total utility Stalks ,Grains and baggase
• In rain fed cultivation excess availability of
  stalks can be converted into Jaggery
• Farmers can earn Rs.4000 (US100) plus per acre
  per crop (Promised Less)
• (Sweet Sorghum Syrup/Jaggery)
• Sweet Sorghum Syrup/Jaggery made from Sweet
  sorghum stalks juice
• Technical know how can be provided to farmers
  above 100 K.M radius for producing jaggery/Syrup
  from Sweet Sorghum

12
Sweet Realty
Farmer Name Ramesh Rao Village Name
Gunthapally Acreage 2 Acres Stalk supplied 49.7
tonnes Total Income Rs. 29,874 (US747) Input
cost Rs. 1874 (US47) Net gain Rs. 28000
(US700)
Promised Less Delivered More
13
Procurement of Raw Materials

• 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)

14
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.

15
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.

16
DECENTRALIZED MODEL FOR FARMERS
LEFT OVER BAGASSE AND BLACK GRAINS COMPRESSED FOR
ANIMAL FEED
STORAGE TANKERS
FACTORY
TRANSPORTATION
17
LEAF STRIPPERS AT FARM LEVEL
18
CRUSHERS AT FARM LEVEL
19
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.

20
Expectancy of the Industry

• Training education to farmers
• Better Crop management
• Farm Mechanization
• Investments in Industrial RD
• Optimizing raw material sourcing costs
• Integrated-Strengthened Public-Private partnership

21
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

22
Thank You
Further details contact Dr. A.R.
Palaniswamy rusnispirit_at_rediffmail.com