Govt Reverses Ban on Sugarcane Juice | for Ethanol Production

Govt Reverses Ban on Sugarcane Juice | for Ethanol Production

Govt Reverses Ban on Sugarcane Juice | for Ethanol Production

Introduction : 

The recent move by the government to allow the use of sugarcane juice for making ethanol has sparked a shift in the fuel production landscape. 

In a significant shift from the previous directive, the food ministry has lifted the ban on the utilization of sugarcane juice and B-heavy molasses to produce ethanol for the 2023-24 supply year.

Revoking the Ban : 

Initially, on December 7, there was a ban imposed on the use of sugarcane juice and sugar syrup for the 2023-24 supply year. 

This was an attempt to ensure sufficient sugar supply in the domestic market and stabilize prices. 

However, a new directive has reversed this decision, permitting the utilization of sugarcane juice and B-heavy molasses for ethanol production.

Fresh Guidelines : 

The food ministry issued directives to sugar mills and distilleries, instructing them on the revised allocation of sugarcane juice and B-heavy molasses-based ethanol for the upcoming supply year. 

Oil marketing companies (OMCs) will oversee this revised allocation to each distillery, following which the mills and distilleries are to strictly adhere to the provided quantities.

The directive explicitly prohibits diverting sugarcane juice and B-heavy molasses for the production of rectified spirit and extra neutral alcohol. 

Additionally, all molasses-based distilleries are encouraged to produce ethanol from C-heavy molasses.

The Industry's Response : 

This decision has been met with a mixed response from industry stakeholders. While some see this as a partial relief, others are waiting for the specific allocation quantities from OMCs to assess the actual impact. 

It's anticipated that while this reversal will ease some pressure on sugar mills and distilleries, there may still be reductions in the overall volume of ethanol produced.

Conclusion : 

The government's revised order to allow the utilization of sugarcane juice for ethanol production has marked a significant change in policy. 

While aiming to stabilize the domestic sugar market, this decision offers some respite to sugar mills and distilleries. 

However, the actual impact remains to be seen, as industry players await the specific allocation quantities from oil marketing companies (OMCs).

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