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Within the evaluation performed by the central authorities in December 2023, it was feared that the supply of sugar within the nation would stay low, which may lead to a rise enhance within the sugar costs within the native market within the run-up to the overall elections.
On December 7, the central authorities banned the manufacturing of ethanol from sugarcane juice/sugar syrup, extract and from the B Heavy Molasses.
“As a consequence of this sudden resolution, the whole sugar business was shell shocked. In addition to, this had additionally put a query mark on the central authorities’s flagship programme on ethanol manufacturing, inventory of ethanol and B Heavy molasses within the factories and contracts with oil firms. Furthermore, monetary funding made by the factories on this sector, was additionally threatened,” mentioned NFCSF.
Nevertheless, on December 15, 2023, the central authorities gave partial reduction to the sugar factories having distillation tasks throughout the nation by permitting them to make use of the remaining inventory of ethanol and a few quantity of B Heavy Molasses for ethanol.
As per the amended order, most 17 lakh tonnes of sugar was allowed to be diverted to ethanol manufacturing.On April 24, the central authorities granted permission to make use of about 7 lakh tonnes of remaining B Heavy Molasses for ethanol.“On the recommendation of Meals Ministry, the Petroleum Ministry has began strategy of allocating further ethanol to particular person distilleries on the idea of bodily inventory of B Heavy molasses held by them as on March 31, 2024,” mentioned NFCSF.
It added, “Out of this, about 3.25 lakh tonnes of surplus sugar will probably be diverted to ethanol manufacturing, which is able to produce 38 crore liters of ethanol at a value of Rs 2300 crore.”
NFCSF hopes that this resolution will assist in decreasing the sugar shares and consequently enhance the promoting charge of native sugar.
“This resolution will launch round Rs 700 crore caught within the remaining shares of B Heavy Molasses within the mills. And from the sale of 38 crore liters of ethanol produced, about Rs 2300 crore will probably be obtainable to factories with distillation tasks throughout the nation in order that farmers will be paid well timed and absolutely.”mentioned Harshvardhan Patil.
