Government Allows Dual Use of Sugarcane Juice for Ethanol Production

• 18 Dec 2023

On 15^th Dec, the government has granted permission for the simultaneous use of sugarcane juice and B-heavy molasses to produce ethanol, reversing a recent ban on cane juice for this purpose.

Key Points

• Meeting Outcome: The decision was made during a Committee of Ministers' meeting, responding to appeals from the sugar and sugar-based distillery industries to reconsider the previous ban.
• Quantity Cap: The diversion of sugar for ethanol production is now capped at 17 lakh tonnes, providing flexibility for using both sugarcane juice and B-heavy molasses.
• Industry Demands: The sugar industry, represented by Indian Sugar Mills Association (ISMA), has called for a revision in ethanol prices derived from B-heavy and C-heavy molasses, seeking to enhance the financial well-being of millers. The government remains open to considering these demands.