India likely to curb use of sugarcane juice, B-heavy molasses for ethanol
India’s sugar industry is preparing to shift ethanol production toward C-heavy molasses if the government restricts sugarcane juice, syrup and B-heavy molasses. The move could increase domestic sugar availability amid elevated retail prices and festive-season supply concerns.
The sugar industry has aligned itself to absorb another shock as the government may soon issue order restricting the use of sugarcane juice/syrup and B-heavy molasses for making ethanol, potentially leaving only C-heavy molasses (CHM) for the biofuel. In 2023, the government issued such an order that helped it avert a shortage in domestic market.
Addressing a conference organised by India Sugar & Bio-Energy Manufacturers Association (ISMA) in New Delhi on Wednesday, Madhav B. Shriram, Vice-President, ISMA, said that the industry is ready to use CHM, which contains nil sucrose, for ethanol as it will also help increase more sugar available in the domestic market.
Currently, the government is besieged with the problem of high level of sugar prices in retail market, majorly at about Rs 70/kg at small grocery shops. A number of measures has been taken in the past few weeks including imposing stock limit, allowing import at zero duty, permitting already imported sugar (for re-export purpose) for domestic sales, mandating mills to ensure lifting within seven days of sales execution. It has also been working now to persuade mills to start crushing sugarcane earlier than normal in October.
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Source : The Hindu Businessline
