Govt Bars Sugarcane Juice for Ethanol, Ensures Domestic Sweetener Supply
New Delhi: In an attempt to ensure adequate supply of sweetener for domestic consumption and keep prices under check, the central government on Thursday directed all sugar mills and distilleries not to use sugarcane juice for production of ethanol. As ethanol is used for petrol blending, the government also continued, saying that sugar mills can continue to produce ethanol from B-heavy molasses to meet requirements for blending in petrol.
“In exercise of powers conferred under clause 4 & 5 of the Sugar (Control) Order 1966, it is directed to all sugar mills and distilleries not to use sugarcane juice /sugar syrup for ethanol in ESY (ethanol supply year) 2023-24 with immediate effect. The supply of ethanol to oil marketing companies (OMCs) from B-heavy molasses will continue,” the food ministry wrote to all managing directors and chief executive officers of all sugar mills and distilleries.
Earlier this year, the government had announced a Rs 10 per quintal hike in sugarcane's Fair and Remunerative Price (FRP), which is the minimum price that mills have to pay to sugarcane growers, to Rs 315 per quintal for the 2023-24 season starting October. In the current (2022-23) marketing year, about 3,353 lakh tonnes of sugarcane worth Rs 1,11,366 crore has been purchased by sugar mills.
