In a move to ensure domestic sugar availability and stabilize prices, the Indian government has banned the use of sugarcane juice and sugar syrup for ethanol production in the 2023-24 season. However, the use of B molasses for ethanol production is still permitted.
According to the news report published in CNBCTV18, Consumer Affairs Secretary Rohit Kumar Singh clarified that the curbs are temporary and subject to continuous review. “We’re just being extra cautious,” Singh said, citing weather concerns and the upcoming festival season. The government aims to ensure adequate sugar stocks by the next crushing season.
Notably, the government has permitted the use of ‘B molasses’ for ethanol production in the ongoing fiscal year, he said.
Government in a notification released on December 7, 2023, directed to all sugar mills and distilleries not to use Sugarcane Juice/Sugar Syrup for Ethanol in ESY 2023-24 with immediate effect. Supply of ethanol from existing offers received by OMCs from B-Heavy molasses will continue.
