5 months ago
64
The Ministry of Consumer Affairs, Food and Public Distribution on Thursday directed sugar mills and distilleries not to use sugarcane juice or syrup to produce ethanol in the ethanol year 2023-2024.
The communication to Managing Directors and Chief Executive Officers of sugar mills and distilleries said the direction comes into immediate effect. It added that “supply of ethanol from existing offers received by OMCs from B-Heavy molasses will continue.” The Department of Food and Public Distribution monitors production, sale and stock availability of sugar in the country to ensure sufficient availability of sugar for domestic consumption at stable prices by implementing the Sugar (Control) Order .
“The Government today passed an important directive asking sugar mills to not produce ethanol from sugarcane juice/syrup in the current ethanol supply season. This move will ensure there is sufficient sugar in the country to meet domestic consumption demand, in the light of lower sugar production in the country. This is an important step taken by the government giving importance to food versus fuel. Going forward, it will be important to see how the ethanol blending target is fulfilled in the current season, with ethanol supplied mainly from B heavy molasses, broken rice and maize,” Uppal Shah, co-founder and CEO, AgriMandi.live Research.
The Indian Sugar Mills Association (ISMA) said it is studying the implications of the order and getting more details.
Sources in the sugar industry said this will ensure adequate supply of sugar in the domestic market as sugarcane production is affected in States such as Maharashtra and Karnataka. But, it is also likely to impact the ethanol blending programme. The country is looking at 20% ethanol blending by 2025-2026 ethanol year.
Ethanol is produced from sugarcane juice during the sugar production period in a sugar mill and from molasses during the off season. There are several investments in units to produce only ethanol. Such units are likely to be affected, the sources said.
