.webp "Sugar Stocks Soar")
Reversing the restriction from the previous year, the government on Thursday approved the use of the juice from sugarcane and sugar syrup for the manufacturing of ethanol in the 2024-25 ethanol supply year (ESY). To guarantee sufficient sugar supply for the domestic market and control prices, the government forbade the use of the juice from sugarcane or sugar cane syrup for ethanol manufacture in the 2023-24 ESY (December-November) in December 2023.
Sugar Mills and Distilleries to Increase Ethanol Production
"Sugar mills and distilleries are allowed to produce ethanol from sugarcane juice/sugar syrup, B-Heavy molasses as well as C-Heavy molasses for ESY 2024-25 as per the agreement/allocation with OMCs (oil marketing companies)," the food ministry order added. In order to guarantee that sugar is always available for domestic consumption, the Food Ministry and the Petroleum and Natural Gas Ministry will periodically assess how much sugar is diverted for ethanol production as opposed to sugar manufacturing in the nation.
Government Targets 20% Ethanol Blending
According to official data, the percentage of ethanol blended in India increased from 12.6% during the 2022-2023 season to 13.3% by July in the current season. At now, the nation has the ability to produce 1,589 crore litres of ethanol. During the 2023-24 season, OMCs bought 505 crore litres of ethanol for blending purposes. By 2025-2026, the government wants to reach a 20% ethanol blend objective. Remarkably, India is the second-largest producer of sugar in the world, right behind Brazil.
Conclusion
The government's lift on restrictions for using sugarcane juice and syrup in ethanol production has caused sugar stocks to surge by up to 12%. This policy aims to boost ethanol production, supporting India's goal of a 20% ethanol blend by 2025-2026. By enabling sugar mills and distilleries to use these resources, the government is enhancing ethanol production while balancing sugar supply and pricing. This move highlights India's dedication to sustainable energy and economic growth in the agro-industry, reinforcing its position as the world's second-largest sugar suppliers.
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