The authorities’s choice on Friday allowing sugar mills to use each sugarcane juice and B-heavy molasses to produce ethanol topic to a cap of 17 lakh tonnes, will present ‘partial relief’ to sugar mills, a mill proprietor mentioned.
The rollback of the December 7 directive of the Department of Food and Public Distribution asking sugar mills to not produce ethanol from sugarcane juice and syrup adopted representations by the business in search of a reversal of the choice.
In a communication dated December 15, the division mentioned oil advertising firms (OMCs) will use revised allocation of sugarcane juice and B heavy molasses primarily based ethanol for the ethanol yr 2023-2024 to every distillery and sugar mills and distilleries ought to “supply ethanol strictly” because the per the revised amount specified. There will likely be no diversion of sugarcane juice and B heavy molasses for manufacturing of rectified spirit or additional impartial alcohol. All molasses primarily based distilleries ought to “endeavour to make ethanol from C Heavy molasses,” it mentioned.
An ethanol-producing sugar mill proprietor, who spoke on the situation of anonymity, mentioned the precise influence of the reversal can be recognized solely after the oil advertising firms (OMCs) issued the allocation portions. While the newest order would give some aid to sugar mills and distilleries, there would nonetheless be reductions within the general quantity of ethanol produced, he added.
