The government has directed all sugar mills and distilleries not to use sugarcane juice for ethanol production.
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.
The National Federation of Cooperative Sugar Factories Limited (NFCSF), representing cooperative sugar mills nationwide, sought clarification on the term ‘existing’ in the released notification.
Prakash Naiknavare, Managing Director of NFCSF, while speaking to Chinimandi, said, “The order has brought relief to the confusion prevailing over the last two days that no ethanol will be procured. In the notification for the word ‘existing’ we have sought clarification from the government. Does existing mean that only the tendered quantity will be taken? or will it be non-tendered quantity in future will be also taken.”
He further added, “Another clarification we seek pertains to standalone plants that can only process juice and syrup. They cannot take B-Heavy molasses or C-Heavy molasses. Consequently, no procurement will occur for the entire year. We are concerned about their investment. They followed the government’s advice and encouragement and now stopping supplies, what will happen to their investments?”
The current ethanol production capacity in India is 1,364 crore litres and is sufficient to meet the fuel blending targets, the Centre informed Rajya Sabha on Monday.
The Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-ministerial committee, estimated an ethanol requirement of 1,016 crore litres to achieve 20 per cent blending targets in ESY 2025-26. In line with the roadmap, oil marketing companies have achieved 10 per cent ethanol blending during 2021-22 and 12 per cent during 2022-23.
