Maharashtra Deputy Chief Minister Ajit Pawar. File
| Photo Credit: PTI
Maharashtra Deputy Chief Minister Ajit Pawar on December 8 stated Union Cooperation Minister Amit Shah has assured to discover a approach out in the following two days to the difficulty arising out of the Centre’s determination to ban the use of ‘sugarcane juice and sugar syrup’ for ethanol manufacturing.
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Mr. Pawar, who can also be the Finance Minister, stated in the meeting the Centre’s determination was “sudden” and identified that many sugar mills in Maharashtra, one of the highest producers of the sweetener in the nation, have invested closely in establishing ethanol crops.
The Centre on Dec. 7 banned the use of ‘sugarcane juice and sugar syrup’ for ethanol manufacturing in the 2023-24 provide 12 months, which began this month, to take care of ample sugar availability for home consumption and to maintain costs underneath test. However, the federal government has allowed use of ‘B-molasses’, a cane by-product, for ethanol manufacturing in 2023-24.
Ethanol, a colourless liquid, is mixed with gas as half of the federal government’s initiative to cut back reliance on crude oil imports.
“The ban on ethanol production from sugarcane syrup was sudden. Many sugar mills have invested in ethanol plants with 5% of their capital and 95% funds borrowed from outside,” Mr. Pawar instructed the legislative meeting after Congress and NCP(Nationalist Congress Party) Legislators raised the difficulty in the home.
Opposition leaders claimed the Centre’s determination would adversely have an effect on sugar mills in Maharashtra which have taken loans to arrange items to supply ethanol from sugarcane syrup and molasses.
“I have discussed the issue with Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis and State Cooperation Minister Dilip Walse-Patil. I also spoke to Union Home (and Cooperation) Minister Amit Shah, who assured me to find out a solution in the next two days,” said Mr. Pawar.
“If a solution is not found, we will visit New Delhi and discuss the issue with him (Mr. Shah). I have also taken up the matter with Union Commerce Minister Piyush Goyal,” Mr. Pawar stated.
In a letter to all sugar mills and distillers, the Food Ministry directed them “not to use sugarcane juice /sugar syrup” for ethanol manufacturing in the course of the 2023-24 ethanol provide 12 months (December-November).
“Supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-Heavy molasses will continue,” the Ministry’s letter said.
The Central Ministry’s determination comes in the backdrop of an estimated fall in sugar manufacturing in the 2023-24 advertising and marketing 12 months (October-September).
