Policy continuity key to position India’s sugar-ethanol growth story: Tarun Sawhney
The Indian sugar industry is seeking government support through an immediate increase in the minimum selling price of sugar to offset rising cane and input costs. Stakeholders also call for higher ethanol procurement prices and clear policies on sustainable aviation fuel, aiming to ensure sector sustainability, farmer support, and growth in renewable energy contributions.
The sugar industry hopes the Government will bring in the much needed policy intervention in the form of sugar MSP increase. Speaking about the wishlist for the New Year, Vice Chairman & Managing Director at Triveni Engineering & Industries Limited said that in the new year, the sugar and ethanol ecosystem would benefit from a few key policy enablers that can bring greater balance and long-term sustainability to the sector.
“An immediate revision of the minimum selling price of sugar, which has been pending for long, in line with rising input costs, particularly cane prices, would go a long way in restoring economic viability for mills, especially in states like Uttar Pradesh,” Sawhney said.
The other pressing issue faced by the industry is the stagnant ethanol procurement price, especially from B Heavy Molasses and Sugarcane Juice.
Sawhney said that a calibrated increase in ethanol procurement prices would help sustain investments across both sugar- and grain-based distillation capacities, ensuring that the momentum achieved in blending is not diluted.
He said that the next phase of growth will come from expanding the biofuel canvas beyond conventional ethanol.
“The gradual evolution of policies around Sustainable Aviation Fuel (SAF) presents a significant opportunity for India to leverage its agri-based feedstock strength while advancing energy transition goals,” he stated.
Sawhney added that the industry looks for policy clarity and continuity, measures that support farmers, encourage efficient capital deployment, and enable India’s sugar and ethanol sector to play a larger role in the country’s sustainable, renewable energy journey while simultaneously improving energy security.
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Source : Chinimandi
