ESY 2024-25: Government allows sugar mills and distilleries to produce ethanol from sugarcane juice, B-Heavy Molasses
The Department of Food and Public Distribution has authorized sugar mills and distilleries to produce ethanol from sugarcane juice, B-Heavy Molasses, and C-Heavy Molasses for the 2024-25 ethanol supply year. They will also be allowed to participate in FCI rice auctions, with up to 23 LMT of rice available, ensuring compliance with ethanol allocations.
In a significant relief for sugar mills, the Department of Food and Public Distribution has permitted sugar mills and distilleries to produce ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses, and C-Heavy Molasses during ESY 2024-25, in accordance with agreements and allocations with OMCs.
In a communication to sugar mills and distilleries, the DFPD stated, “With reference to this Directorate Order of even No. dated 15.12.2023, I am directed to inform you that sugar mills and distilleries are permitted to produce ethanol from sugarcane juice/sugar syrup, B-Heavy Molasses, and C-Heavy Molasses during ESY 2024-25 as per the agreement/allocation with OMCs.”
The DFPD, in coordination with MoPNG, will periodically review the diversion of sugar to ethanol production in relation to the total sugar production in the country to ensure that sugar availability for domestic consumption is maintained throughout the year.
Also in another office memorandum, DFPD said, “The undersigned is directed to convey the decision of the Competent Authority that ethanol distilleries may also be allowed to participate in auction of FCI to private traders while ensuring compliance of following points:
a. The distilleries may be allowed to participate in e-auction and lift the rice during Aug-Oct 2024 as per the final auction rate of rice every week.
b. The rice may be allowed for lifting subject to allocation of ethanol to the concerned distilleries by OMCs using FCI rice as feedstock.
c. Maximum 23 LMT rice may be allowed for lifting to ethanol distilleries.”
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