Don't Use Sugarcane Juice And Sugar Syrup For Ethanol Production, Govt Asks Distilleries

(MENAFN- Live Mint) "The Consumer Affairs Ministry on Thursday issued a directive instructing all sugar mills and distilleries to refrain from utilising sugarcane juice or sugar syrup for ethanol production in the ethanol supply year (ESY) 2023-24, effective immediately, as mandated by the central government.“The supply of ethanol from existing offers received by OMCs (Oil Marketing Companies) from b-heavy molasses will continue,” the order read, the move has raised concerns about the adequacy of ethanol stocks available for blending with fuel, a crucial aspect of a government initiative aimed at diminishing reliance on crude oil imports of major sugar industry players hit lower circuits on Dalal Street on Thursday - Shree Renuka Sugar, EID Parry, Balrampur Chini Mills, and Bajaj Hindusthan Sugar saw a decline of 4.16%, 6.61%, 6.74%, and 5.45%, respectively it was reported that the authorities are studying a proposal to limit the use of sugarcane juice to produce biofuel for the current season rainfall adversely affected sugarcane crops in India, leading the world's second-largest sugar producer to prolong restrictions on exports beyond October 31. The decision to curtail ethanol production is intended to prevent a further decline in sugar inventories in India, as explained by Michael McDougall, the managing director at Paragon Global Markets to an Economic Times report, the matter was discussed at a meeting of the Group of Ministers on Monday, which was attended by Minister of Commerce and Industry Piyush Goyal, Minister of Agriculture Narendra Singh Tomar and Home Minister Amit Shah.\"The ministers were concerned about the expected fall in the sugar production in Maharashtra and Karnataka as it could make sugar more expensive just before the general elections. There should be enough sugar available in the country before the election code of conduct comes into effect. One of the senior ministers asked the cabinet secretary to write to the Oil Marketing Companies to stop buying ethanol made from sugarcane juice and from B-heavy molasses,\" sources were quoted as saying by ET fuel retailers procure ethanol from sugar mills to incorporate it into gasoline. They were previously incurring a higher cost for ethanol derived from sugarcane juice and B-heavy molasses.

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