To improve the liquidity position of sugar mills, to enable them to clear cane price dues of farmers and combat the problem of excessive sugar stocks, has directed sugar mills across the country to divert excess sugarcane to produce fuel-grade ethanol by utilizing at least 85% of their existing capacity. DFPD has also set a mill wise target to produce 3.62 billion litres of ethanol in the year 2020-2021, the current capacity stands at 4.26 billion litres in an average of 282 days of operation.
In an notification issued on the 8th day of December 2020, the Ministry of Consumer Affairs, Food and Public Distribution directed new guidelines indicating the detailed mechanism for production of ethanol separately by diversion of B-Hy molasses or C-Hy molasses or cane juice / sugar/ syrup including sale of B-Hy molasses for strict compliance by the sugar mills and distilleries.
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The guidelines are issued particularly with reference to parameters to be considered for determining quality of B Heavy molasses, recovery loss and trade of B heavy molasses.
