The Ministry of Consumer Affairs, Food and Public Distribution on Thursday directed sugar mills and distilleries not to use sugarcane juice or syrup to produce ethanol within the ethanol yr 2023-2024.
The communication to Managing Directors and Chief Executive Officers of sugar mills and distilleries stated the course comes into instant impact. It added that “supply of ethanol from existing offers received by OMCs from B-Heavy molasses will continue.” The Department of Food and Public Distribution displays manufacturing, sale and inventory availability of sugar within the nation to guarantee enough availability of sugar for home consumption at secure costs by implementing the Sugar (Control) Order .
“The Government today passed an important directive asking sugar mills to not produce ethanol from sugarcane juice/syrup in the current ethanol supply season. This move will ensure there is sufficient sugar in the country to meet domestic consumption demand, in the light of lower sugar production in the country. This is an important step taken by the government giving importance to food versus fuel. Going forward, it will be important to see how the ethanol blending target is fulfilled in the current season, with ethanol supplied mainly from B heavy molasses, broken rice and maize,” Uppal Shah, co-founder and CEO, AgriMandi.reside Research.
The Indian Sugar Mills Association (ISMA) stated it’s learning the implications of the order and getting extra particulars.
Sources within the sugar trade stated it will guarantee sufficient provide of sugar within the home market as sugarcane manufacturing is affected in States resembling Maharashtra and Karnataka. But, additionally it is possible to impression the ethanol mixing programme. The nation is 20% ethanol mixing by 2025-2026 ethanol yr.
Ethanol is produced from sugarcane juice through the sugar manufacturing interval in a sugar mill and from molasses through the off season. There are a number of investments in items to produce solely ethanol. Such items are possible to be affected, the sources stated.