Uttar Pradesh likely to step up ethanol production by 12% in ’25-26
The Centre’s move to allow ethanol production directly from cane juice, syrup, and molasses is set to boost Uttar Pradesh’s ethanol output by over 12% in ESY 2025–26. UP may produce 180 crore litres, strengthening its lead in India’s ethanol programme while stabilising sugar prices and aiding timely farmer payments.
Lucknow: Centre’s decision to allow production of ethanol from sugarcane juice, syrup and molasses could potentially allow UP’s sugar industry to increase its production by more than 12% in the ethanol supply year (ESY) starting Nov this year.The ethanol push, experts said, will also align with India’s ethanol blending programme that aims to reduce oil import bills and promote energy security.UP currently produces around 160 crore litre of ethanol in its 90 distilleries. This is now projected to go up by 180 crore litre in the upcoming ESY, allowing UP to maintain its number one position in ethanol production in the country. The installed capacity of ethanol production in UP stands at around 224 crore litre, second only to Maharashtra’s 305 crore litre.The price of ethanol is pegged at Rs 57.97 per litre (produced from C-heavy molasses) to Rs 71.86/litre (from maize).Industry sources said that the move could also help the industry stabilise sugar prices besides maintaining the sugar stocks which have been growing unmanageable in recent times. A senior official in the cane development department said that the ex-mill prices of sugar came down to around Rs 41 per kg to 37 per kg.
This is expected to go up by around Re 1 per kg when a good part of cane juice and molasses — otherwise meant for production of sugar — is diverted to production of ethanol.The rise in ex-mill prices of sugar will, in turn, boost the paying capacity of the mills, while easing the pressure of cane price payment due towards thousands of cane growers in UP. “This will help the mills improve cash flow, reduce arrears and build trust with farmers by making timely payments. In a way, this will stabilise UP’s sugar sector which happens to be politically as well as economically sensitive,” a senior official said.The high ethanol production in UP is despite 25% reservation of molasses for the manufacture of country liquor, which fetches better revenue to the govt.Recent data from the cane development department shows that the cane acreage has grown steadily over the years — from around 23 lakh hectare in 2022-23 to 29.5 lakh hectare in 2024-25. The average yield too increased from just over 79 tonne per hectare to 83.25 tonne per hectare.However, the quantity of cane meant for crushing came down from 1,111 lakh tonne (LT) in 2022-23 to 956 LT in 2024-25, downing the sugar production from 120.5 lakh tonne to a little over 92 lakh tonne during the period. The plunge was a result of diversion of cane for khandsari, low sugar recovery and adverse weather conditions.
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Source : The Times Of India
