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The Centre on December 7 banned the use of ‘sugacane juice and sugar syrup’ for ethanol production in the 2023-24 provide yr that began this month, in order to keep enough sugar availability for home consumption and to keep prices below check.
However, the federal government has allowed use of ‘B-molasses’ for ethanol production in 2023-24, a transfer which sugar business our bodies welcomed.
In a letter issued to all sugar mills and distillers, the Food Ministry directed them “not to use sugarcane juice /sugar syrup” for ethanol production in the course of the 2023-24 ethanol provide yr (December-November).
The directive was issued as per clause 4 and 5 of the Sugar (Control) Order 1966.
“Supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-Heavy molasses will continue,” Food ministry mentioned in the letter.
The choice by the ministry comes in the backdrop of estimated fall in sugar production in 2023-24 advertising yr (October-September).
Welcoming the transfer, the National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Pakash P Naiknavare mentioned, “There is huge stock of ethanol made from B-molasses lying in the country apart from contracted quantities. The letter resolves the industry’s concern.” However, there are some ambiguity in the letter that states provide of ethanol from “existing offers” obtained by OMCs from B-Heavy molasses will proceed. “Will it be withdrawn after the existing tender is over? There is no clarity,” he instructed PTI.
Also, some models have been constructed for making ethanol from sugarcane juice and sugar syrup alone. These models will grow to be sick if they continue to be unoperational, he added.
All India Sugar Trade Association (AISTA) Chaiman Praful Vithalani mentioned, “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.” He additionally mentioned the OMCs might not include new tender for B-molasses ethanol until sugar scenario is obvious.
Industry physique Indian Sugar Mills Association (ISMA) has projected a 9 per cent fall in gross sugar production at 337 lakh tonnes for the 2023-24 advertising yr beginning (October-September). It has not estimated the diversion of sugar for ethanol production.
India exported 61 lakh tonnes of sugar in the course of the 2022-23 advertising yr, as in opposition to a report 112 lakh tonnes in the earlier yr. The authorities has not but allowed exports for this advertising yr.
To comprise meals inflation, the Central authorities has additionally banned exports of wheat and damaged rice. It has additionally fastened minimal export worth (MEP) for basmati rice.
