New Delhi: The government has ruled out any possibility of increasing the sugar allocation for ethanol production beyond the predetermined 17 lakh tonnes (lt) for the entire season, according to thehindubusinessline.
With an estimated production range of 320-330 lt anticipated for this season (October 2023-September 2024), officials deem the availability to be well above the required 270-280 lt.
During discussions at the announcement event for the upcoming launch of “Bharat Rice,” Union Food Secretary Sanjeev Chopra conveyed that the sugar situation remains comfortable, asserting that there is minimal impact on prices even when accounting for the hike in sugarcane prices (FRP). He clarified that there are no plans to augment the ethanol allocation.
Responding to inquiries about a potential decline in sugarcane yield in western Uttar Pradesh, Chopra noted that the State government has not provided any information on such a possibility. He emphasized that the overall sugar production in the entire state has surpassed figures from the same period last year.
In the recent release of the second advance estimates of sugar production for the 2023-24 season, the Indian Sugar and Bio-energy Manufacturers Association (ISMA) projected a potential 10% decline to 330.5 lt, including the quantity diverted for ethanol. Despite this projection, mills express optimism that the government may permit an additional quantity due to a comfortable stock position, as indicated by ISMA on January 31.
