ISMA (India Sugar & Bio-energy Manufacturers Association) on Tuesday said it has requested the government to permit diversion of additional 10-12 lakh tonnes of sugar for ethanol production in the current season, amid reports of higher output.
The government has capped sugar diversion for ethanol making at 17 lakh tonnes for the current 2023-24 season in view of likely fall in sugar production due to drought in parts of Maharashtra and Karnataka.
According to the ISMA, sugar production till 15th January’2024 in the current 2023-24 SS reached 149.52 lakh tonnes, against 157.87 lakh tonnes produced last year on the corresponding date. Number of operating factories are 520 this year against 515 mills which operated last year on the corresponding date.
Following table gives state-wise detail of sugar production this year vis a vis last year:
(Note: Above sugar production figures are after diversion of sugar into ethanol)
As per practice, ISMA shall be procuring mid-harvest satellite imagery shortly and will come out with its 2nd advance estimates of sugar production by the end of this month.
However, as per reports, recent weather has been favourable for the standing cane crop and cane commissioners of major states like Uttar Pradesh, Maharashtra and Karnataka have done upward revision in their sugar production estimates for 2023-24 SS to the tune of 5 – 10% each.
In addition to this, the next year crop outlook also appears better than what was thought a month ago.
According to the ISMA, we also believe that sugar production in the current year could be higher than what was expected earlier. Accordingly, it has requested Government to allow additional 10-12 lakh tonnes of sugar diversion towards ethanol production. Even after allowing additional sugar for production of ethanol, closing sugar balance shall be sufficient to cater a couple of months into the next season.
“Government had recently announced incentive for ethanol made from Maize, but since the sugar cane crop is more efficient in terms of water/nutrient/land use or carbon sequestration, as compared to maize and deserves to be supported more by the Government and therefore upward revision in the procurement cost of ethanol produced from Sugarcane Juice/ Syrup, B-Heavy Molasses and C-Heavy Molasses for ESY 2023-24 should also be announced immediately.” ISMA further added.
