Govt could enable sugar corporations to promote ethanol produced earlier than ban on cane juice, B-heavy molasses

The Indian authorities could quickly enable the sale of ethanol already produced from sugarcane juice and B-heavy molasses (BHM) earlier than it imposed a ban in December final 12 months with instant impact. As the amount of ethanol mendacity with mills is equal to eight lakh tonnes (lt) of sugar, the entire amount of sugar diversion for the biofuel manufacturing could attain 25 lt, together with 17 lt already allowed for this sugar season (October-September).

“There isn’t any concern on sugar as already near 300 lt has already been produced, excluding 17 lt diverted for ethanol whereas complete amount could also be 310-315 lt. This appears to be like comfy because the annual sugar consumption within the nation is about 280-285 lt,” mentioned an official supply. Because the opening inventory as on October 1, 2023, was 57 lt, with 30 lt surplus from this 12 months added to it, the closing inventory in 2023-24 season could also be round 85 lt.

No hurt in permitting

Stating that neither there’s a concern on sugar availability nor these ethanol already produced could possibly be of some other use, there isn’t any hurt now in permitting mills to promote these ethanol, the supply mentioned. Nonetheless, it might take a while, could also be in June, to resolve if mills are to allowed to provide ethanol from BHM, the supply mentioned.

The choice may additionally assist oil advertising corporations so as to add extra amount into mixing amid the ethanol mixing with petrol (EBP) price recorded at 11.87 per cent till March 31 in present ethanol 12 months (November-October), whereas the goal is 15 per cent for the entire 12 months.

Sugar mills and distilleries which have invested closely, as excessive as ₹150 billion in final three years to extend ethanol capability, could get a fillip as there was confusion after the federal government’s in a single day ban, trade officers mentioned.

Not too long ago, the All India Sugar Merchants Affiliation raised its sugar manufacturing estimated this season by 4 lt to 320 lt, however it’ll nonetheless be decrease than the 329 lt produced final season. Increased output in Maharashtra and Karnataka is prone to help in elevating the manufacturing figures, although Uttar Pradesh will probably report decrease output.

In response to AISTA’s second estimates, sugar manufacturing in Maharashtra is estimated to achieve 108 lt in opposition to the 96 lt within the first estimates. However, the manufacturing in Uttar Pradesh is estimated to say no to 106 lt from 117 lt within the first estimates.