How the fuel ethanol industry can operate more standardizedly

At the time of the two sessions of the National Congress, the author is most concerned about whether the country can launch relevant measures to ensure the standardized operation of the fuel ethanol industry.
September 2017, China issued the Implementation Plan on Expanding the Production and Promotion of Biofuel Ethanol production and the use of car ethanol gasoline, which clearly promotes the use of car ethanol gasoline throughout the country and achieves full coverage by 2020. Since then, fuel ethanol project construction boom, disorderly competition in the industry, if allowed to develop, will bring two harms
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is that costs will gradually increase. By 2020, the country's annual fuel ethanol production capacity will reach 12 million tons, several provinces and large state-owned enterprises are accelerating the expansion of points, fuel ethanol production capacity growth momentum is rapid, Jilin, Liaoning, Heilongjiang, Inner Mongolia alone, the new annual production capacity of 7 million tons. By then, the trend of tight corn resources will gradually appear, and the bottom of the price will continue to rise. In 2018, for example, the price of corn tons will be 240 yuan higher than the previous year.
is that the market disorderly competition or become the norm. Due to the lack of unified planning and constraints, the original designated market area operation mode will be broken, fuel ethanol enterprises to compete for the market battle is on the way. Some enterprises to seize the market at low prices, to seize the market, resulting in market disorder, not only harm the interests of consumers, but also hinder the healthy and orderly development of the fuel ethanol industry.
can we ensure the sustainable development of the fuel ethanol industry? The author thinks that the government needs to do three things.
first step is to strengthen the top-level design. Fuel ethanol industry is to ensure energy security and food inventory regulator, if the expansion of production capacity, will inevitably affect food security. Therefore, the national level needs to strictly supervise and approve the production of fuel ethanol, can not be arbitrarily expanded, otherwise it will embark on the road of overcapacity, a large amount of spare capacity idle.
to specify the product sales area. Prior to this, China's fuel ethanol closed operation has achieved gratifying results, for this reason, the relevant departments should increase the experience of closed operation. For example, according to the principle of closeness, based on large-scale, good credit, excellent products, the division of their closed operating areas, not only can reduce unnecessary fierce competition, but also to ensure the market order of closed areas, for fuel ethanol enterprises and consumers is a win-win situation.
to increase support for non-food ethanol. At present, most of the projects under construction and planning are mainly grain-based ethanol, which is obviously not in line with the original intention of the national development of non-food ethanol. It is suggested that the state should introduce relevant policies to increase support for non-food ethanol in taxation, finance and other aspects, establish a sound incentive mechanism for industrial development, speed up the technical integration of all forces, and realize large-scale commercialization as soon as possible.