Government outlaws using sugarcane juice or syrup to produce ethanol in the 2023–2024 supply year. In an effort to maintain sufficient supply of sugar for domestic consumption and control prices, the Center on Thursday outlawed the use of “sugacane juice and sugar syrup” for the production of ethanol during the 2023–24 supply year, which began this month.
But in 2023–2024, the government approved the use of “B-molasses” for the production of ethanol, a move that sugar industry associations applauded.
The Food Ministry instructed all sugar mills and distillers “not to use sugarcane juice / sugar syrup” for ethanol production during the 2023–24 ethanol supply year (December–November) in a letter that was sent to them.
In accordance with sections 4 and 5 of the Sugar (Control) Order 1966, the directive was issued. The Food Ministry stated in the letter that “supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-Heavy molasses will continue.”
The ministry’s decision was made against the projected decline in sugar production for the 2023–24 marketing year, which runs from October to September.
“There is huge stock of ethanol made from B-molasses lying in the country aside from contracted quantities,” stated Pakash P. Naiknavare, Managing Director of the National Federation of Cooperative Sugar Factories (NFCSF), in response to the announcement.
The letter allays the worries of the industry. The letter does, however, contain some ambiguity when it says that OMCs will continue to receive ethanol from “existing offers” made by B-Heavy molasses.
“Will it be removed once the current tender concludes? He told PTI that there is no clarity. Additionally, some facilities have been constructed to produce ethanol only from sugarcane juice and sugar syrup. He continued, “If these units remain unoperational, they will become sick.”
“As per the order, B-molasses production shall continue against existing offer but it is not clear if it will continue for next B-molasses tender,” stated Chaiman Praful Vithalani of the All India Sugar Trade Association (AISTA). He added that until the sugar situation is resolved, the OMCs might not issue new tenders for B-molasses ethanol.
The Indian Sugar Mills Association (ISMA), an industry association, has predicted that gross sugar production for the 2023–24 marketing year, which runs from October to September, will decrease by 9% to 337 lakh tonnes. The amount of sugar diverted for the production of ethanol has not been estimated.
In the 2022–2023 marketing year, India exported 61 lakh tonnes of sugar, down from a record 112 lakh tonnes the year before. For this marketing year, exports have not yet been approved by the government.
The Central government has also outlawed the export of broken rice and wheat in an effort to control food inflation. The minimum export price (MEP) for basmati rice has also been set by it.
