In a significant relief for sugar mills, the Department of Food and Public Distribution has permitted sugar mills and distilleries to produce ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses, and C-Heavy Molasses during ESY 2024-25, in accordance with agreements and allocations with OMCs.
In a communication to sugar mills and distilleries, the DFPD stated, “Sugar mills and distilleries are permitted to produce ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses, and C-Heavy Molasses during ESY 2024-25 as per the agreement/allocation with OMCs.”
The DFPD, in coordination with MoPNG, will periodically review the diversion of sugar to ethanol production in relation to the total sugar production in the country to ensure that sugar availability for domestic consumption is maintained throughout the year.
The sugar mills body, Indian Sugar and Bio-Energy Manufacturers Association (ISMA), has welcomed the decision made by the government. Deepak Ballani, Director General of ISMA, said, “We welcome the decision taken by the government to lift the restriction on ethanol production. On behalf of the industry, ISMA would like to thank the Government of India. Lifting the restriction and allowing unrestricted ethanol production from sugarcane juice, B-Heavy Molasses, and C-Heavy Molasses for ESY 2024-25 is a significant relief for the industry.”
It should be noted that a few months ago, the DFPD had restricted ethanol production from sugarcane juice and B-Heavy Molasses.
DFPD in a separate notification informed that ethanol distilleries may also be allowed to participate in auction of FCI to private traders while ensuring compliance of following points:
a. The distilleries may be allowed to participate in e-auction and lift the rice during Aug-Oct 2024 as per the final auction rate of rice every week.
b. The rice may be allowed for lifting subject to allocation of ethanol to the concerned distilleries by OMCs using FCI rice as feedstock.
c. Maximum 23 LMT rice may be allowed for lifting to ethanol distilleries.”
