Government directs sugar mills to not use sugarcane juice for ethanol production to keep prices in check
The HinduThe Centre on December 7 banned the use of ‘sugacane juice and sugar syrup’ for ethanol production in the 2023-24 supply year that started this month, in order to maintain adequate sugar availability for domestic consumption and to keep prices under check. In a letter issued to all sugar mills and distillers, the Food Ministry directed them “not to use sugarcane juice /sugar syrup” for ethanol production during the 2023-24 ethanol supply year. All India Sugar Trade Association Chaiman Praful Vithalani said, “As per the order, B-molasses production shall continue against existing offer but it is not clear if it will continue for next B-molasses tender.” He also said the OMCs may not come with new tender for B-molasses ethanol till sugar situation is clear. Industry body Indian Sugar Mills Association has projected a 9 per cent fall in gross sugar production at 337 lakh tonnes for the 2023-24 marketing year starting.