In December 2023, the government banned the use of sugarcane juice or sugar syrup for ethanol production in the ESY 2023-2024 (December-November) to ensure adequate availability of sugar for domestic consumption and keep prices under control.
“Sugar mills and distilleries can produce ethanol from sugarcane juice/sugar syrup, heavy molasses B and heavy molasses C for the fiscal year 2024-2025 as per the agreement/allocation with OMCs (oil marketing companies),” the food ministry order said.
The Ministry of Food and the Ministry of Petroleum and Natural Gas will periodically review the diversion of sugar for ethanol production as compared to sugar production in the country to ensure year-round availability of sugar for domestic consumption, he added.
Official data shows that ethanol blending in India reached 13.3% in July of the current season, up from 12.6% during the 2022-2023 season.
Currently, the country’s total ethanol production capacity is 1.589 billion liters. Of this amount, the OMCs purchased 505 million liters of ethanol for blending during the 2023-2024 season.
Read also: No sharp spikes in sugar prices expected in near term, says Balrampur Chini Mills
The government aims to achieve the 20% ethanol blending target by 2025-2026.
India is the second largest sugar producing country in the world after Brazil.
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