ChiniMandi: Close on the heels of the Central Government notification dated 7th December 2023, wherein sugar mills were directed not to produce ethanol directly from sugarcane juice/syrup, to maintain domestic sugar demand, a round of letters from Oil Marketing Corporations (OMCs) to sugar mills/distilleries has everyone’s attention.
The OMCs have written letters to them that given the recent developments, sugar mills are requested to explore for changing the quantity of feedstock from sugarcane juice to C Heavy molasses for ESY 2023-24. This has fueled fear amongst the suppliers, as few feel that the Government might look at halting ethanol production from B Heavy molasses altogether, and concentrate on C Heavy molasses only given the production uncertainties. But is there any weight in this theory?
Allaying fears, experts feel that OMCs are trying to shore up ethanol supplies from sugar mills from both B Heavy molasses and C Heavy molasses, to fill the gap in the ethanol supplies which was left dry after ethanol supplies from sugarcane juice/syrup were stopped.
They also feel that OMCs might be putting pressure on sugar mills to increase their commitment to ethanol supplies from C Heavy molasses also, as there are reports that sugar mills in Karnataka and Maharashtra are exporting molasses, instead of using it for ethanol production.
Of the total ethanol produced in the country, ethanol from cane juice notably accounts for 25-30% while that from B heavy molasses accounts for over 60-65%. Ethanol from C heavy molasses and grains accounted for the rest.
For the current ESY, the OMCs had floated tenders for the supply of 8.25 billion litres of ethanol from all sources to meet the 15 per cent blending target for the period.
Vijay Girase, Ethanol consultant, while speaking to ChiniMandi said, “The government’s intention is clear; they aim to increase sugar production at any cost. We are already experiencing a drop in sugar production in India, and the availability of water is also challenges due to drought like situation in Maharahstra and Karnataka. In the ongoing crushing, even after January and February, government aims to produce more sugar. To take care of inflation as India going for General election next year, Government may try to balance consumer and farmers both as most of the mills are giving very attractive sugarcane payment to farmers. We suggest government should convert molasses which is going for exporting to overseas market so that more ethanol is available for blending.”
