Bijnor: Mills are suffering from surplus sugar stocks as they are finding it difficult to sell sugar in the domestic market due to lockdown.
According to the news report published in Amar Ujala, considering the excess production of sugar and piling of sugar stock at the warehouse, Dhampur sugar mill has decided to produce ethanol from sugarcane juice instead of sugar. The millers expect that this will help them to reduce reliance on sugar and will be able to clear farmers bills by selling ethanol.
Government of India has also advised sugar mills on diversion of excess sugarcane and sugar to ethanol as long term solution for excess stock.
Lockdown imposed amid coronavirus pandemic has increased the financial burden of sugar mills. The demand for sugar has been reduced as the industries like cold drinks, ice cream, bakeries and sweet shops are shut due to lockdown. Sugar mills are passing through a challenging time.
With a view to encourage sugar mills to divert excess sugarcane to produce ethanol for blending with petrol, the Government has also allowed production of ethanol from B-heavy molasses, sugarcane juice, sugar syrup and sugar and has fixed the remunerative ex-mill price of ethanol derived from C-heavy molasses @ Rs.43.75/- litre, from B heavy molasses @ Rs.54.27/litre and Rs.59.48/litre for ethanol derived from sugarcane juice/sugar/sugar syrup for ethanol season 2019-2020 (December to November).
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