In the latest development, an order issued by the Department of Food and Public Distribution (DFPD) to sugar mills/distilleries on December 15 states that Oil Marketing Companies (OMCs) will issue a revised allocation of Sugarcane Juice (SCJ) and B Heavy Molasses (BHM) based ethanol for ESY 2023-24, to each distillery, and inform DFPD after placement of revised contracts.
The latest order comes a week after the government prohibited the use of sugarcane juice and sugar syrup for making ethanol, amid the industry seeking reversal of the decision.
“On receipt of such communication from OMCs for the revised quantity of SCJ & BHM based ethanol as mentioned in notification, all sugar mills and distilleries will supply ethanol strictly as per the revised quantity of SCJ & BHM ethanol,” the order further reads.
DFPD also said that no diversion of sugarcane juice and B Heavy molasses is allowed for production of Rectified Spirit (RS)/Extra Neutral Alcohol (ENA). Also all molasses based distilleries will endeavour to make ethanol from C Heavy
The 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.
As per media report, the flexibility has been given for using both sugarcane juice and B-heavy molasses within an overall cap of 17 lakh tonnes of diversion of sugar.
