Govt bans use of sugarcane juice for ethanol making

NEW DELHI: The Centre on Thursday banned the use of ‘sugarcane juice and sugar syrup’ for ethanol production in the 2023-24 supply year that started this month, in order to maintain adequate sugar availability for domestic consumption and to keep prices under check.

However, the government has allowed use of ‘B-molasses’ for ethanol production in 2023-24, a move which sugar industry 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 during the 2023-24 ethanol supply year (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,” the Food ministry said in the letter.

The decision by the ministry comes in the backdrop of estimated fall in sugar production in 2023-24 marketing year (October-September).

Welcoming the move, the National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Pakash P Naiknavare said, “There is a 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 supply of ethanol from “existing offers” received by OMCs from B-Heavy molasses will continue. “Will it be withdrawn after the existing tender is over? There is no clarity,” he told PTI. Also, some units have been built for making ethanol from sugarcane juice and sugar syrup alone. These units will become sick if they remain non-operational, he added.

All India Sugar Trade Association (AISTA) Chairman Praful Vithalani said, “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.”