The government had issued directives to all sugar mills and distilleries, instructing them not to use sugarcane juice/sugar syrup for ethanol production. Sugar industry claims this decision is expected to have a substantial impact on their operations and finances.
Following this decision, representatives from the sugar industry are scheduled to meet with the Prime Minister’s Office (PMO). Earlier reports had suggested that the meeting could take place today, but according to sources, the sugar industry is set to hold discussions with the PMO on ethanol supply tomorrow.
Government in a notification released on December 7, 2023, had 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 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.
