Recently, alcohol manufacturers have addressed a concern to NITI Aayog, advocating for a decrease in import duties. Their goal is to cost-effectively import Extra Neutral Alcohol (ENA) from global markets. Similar to ethanol, ENA is also a byproduct of the sugar industry. It is formed from fermenting molasses, which are a residue of sugarcane processing. The ENA market in India held a substantial volume of 2.9 billion litres back in 2018.
The Essential Role of ENA
ENA serves as a critical raw ingredient in the production of several alcoholic beverages such as whisky and vodka. Its high alcohol content and lack of impurities make it a desirable component in these drinks.
ENA in Cosmetics and Personal Care Products
The demand for ENA stretches beyond the liquor industry. It is also an essential ingredient in the manufacturing sector for cosmetics and personal care goods. Products like perfumes, toiletries, hair spray, and more utilise ENA in their formulation.
Industrial Applications of ENA
This versatile byproduct has various industrial applications as well. Given its properties as a reliable solvent, it sees use in the production of certain lacquers, paints, and ink for the printing industry.
Pharmaceutical Use of ENA
Additionally, the pharmaceutical sector also incorporates ENA in their products. Items like antiseptics, drugs, syrups, medicated sprays often have ENA as a key ingredient.
Statistical Overview
| Industry | Usage of ENA |
|---|---|
| Alcohol Manufacturing | Primary raw material |
| Cosmetics and Personal Care | Main ingredient |
| Industrial Uses | Major solvent |
| Pharmaceuticals | Key component |
Proposal for Import Duty Reduction
The alcohol manufacturers have urged NITI Aayog to reconsider the current import duty structure. Their request highlights the need for cost-effective importation of ENA from international markets, thereby promoting local alcohol production and other industries that utilise ENA. This move could potentially benefit multiple sectors by providing them with a relatively cheaper raw material and might even stimulate the ENA market in India.
Last Modified: February 6, 2024