Govt bars sugar mills from using sugarcane for ethanol production

New Delhi, Dec 7 (IANS) The Central government on Thursday directed sugar mills to not use sugarcane juice for producing ethanol in 2023-2024 as it is worried that the country’s sugar output may fall which would lead to a spike in prices. is supplied to oil marketing companies such as Indian Oil (NS:), Bharat Petroleum (NS:) and Hindustan Petroleum (NS:) for blending with petrol.

The government notification states that sugar mills can continue to produce ethanol from B-Heavy molasses, which is a by-product in sugar production, to meet the requirement for blending with 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,” an official notification said.

“Supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-Heavy molasses will continue,” the Food Ministry notification states.

The Centre had announced a Rs 10 per quintal hike in the minimum price of sugarcane to Rs 315 per quintal to increase returns for farmers in the 2023-24 season which started in October.



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