Govt intervenes to ensure sugar stocks; directs mills to abstain from turning sugarcane juice into ethanol
The Centre directed mill owners to stop using sugarcane juice and sugar syrup towards the production of ethanol for blending petrol. The move is being seen as a part of the Centre’s initiative to ensure adequate sugar stocks even as the industry shared a forecast last month, predicting a decline in the same.
New Delhi: The consumer affairs ministry in an order directed millers to abstain from using sugarcane juice or sugar syrup for the production of ethanol during ethanol supply year 2023-24. The ministry clarified that existing orders from oil marketing companies for the supply of ethanol produced from heavy B-molasses are allowed.
Why did Centre ban the use of sugarcane for ethanol production?
The Centre has directed millers to refrain from using sugarcane in a bid to curb any potential supply constraints and to control price rise. The Indian Sugar Mills Association in November stated that sugar output was projected to decline 8 per cent to 33.7 million metric tonnes during the marketing year 2023-24.
The Centre has halted sugar exports this year. Exports nearly halved to 61 lakh tonnes in FY23 from 112 lakh tonnes in FY22. Other items whose exports are banned include wheat and broken rice.
