Recently the Department of Food & Public Distribution advised sugar mills across India to divert excess sugarcane to fuel grade ethanol as a long term solution for addressing the problem of excess stocks.
In conversation with ChiniMandi News, Mr. Sanjay Khatal – Managing Director, Maharashtra State Co-op Sugar Factories Federation expressed his views on the how-do of the advice by the Centre. He said, “Molasses is quite short resulting in depressed and less supplies from Maharashtra. Even with the same, Maharashtra mills have fared better in proportionate terms. However, Maharashtra could have augmented higher supplies had the Government decided a seperate price of Rs.67/- per litre for Sugar to Ethanol. This would have reduced sugar stocks particularly the older stocks which are qualitatively deteriorating and over molasses shortage effect. The Government has already permitted sugar to ethanol but priced it on par with juice to ethanol. We had proposed to the Government to consider separate prices for mills in Maharashtra and Uttar Pradesh, however the issue has been unresolved. Yet if the Centre is in position to consider in distinctive prices for sugar to ethanol, then sugar mills in Maharashtra would enthusiastically participate in augmenting the same.”
“The Government has already permitted sugar to ethanol but priced it on par with juice to ethanol. The sugar to ethanol is not for a continued action but a one time measure till we have ethanol plants in place based on the Government’s Interest subvention capex scheme.” He added.
With a view to encourage sugar mills to divert excess sugarcane to produce ethanol for blending with petrol, the Government has also allowed production of ethanol from B-heavy molasses, sugarcane juice, sugar syrup and sugar and has fixed the remunerative ex-mill price of ethanol derived from C-heavy molasses @ Rs.43.75/- litre, from B heavy molasses @ Rs.54.27/litre and Rs.59.48/litre for ethanol derived from sugarcane juice/sugar/sugar syrup for ethanol season 2019-2020 (December to November)
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