ethanol manufacturing: Authorities to permit diversion of 1.7 million tonnes of sugar for ethanol manufacturing

The federal government will come out with a recent notification permitting diversion of 1.7 million tonnes of sugar for ethanol manufacturing. The notification will point out the quantity that may be produced from juice and syrup, the official from the meals ministry stated.

On 7 December, the federal government had directed all mills and distilleries to instantly cease utilizing sugarcane juice or sugar syrup to make ethanol throughout the ethanol provide 12 months (November 2023 to October 2024 however permitted utilizing B and C heavy molasses and foodgrains topic to a month-to-month evaluation.

The federal government’s choice got here after issues of decrease manufacturing of sugarcane resulting from erratic climate situations and rising costs of sugar within the home market. The All India Common Client Wholesale Value was Rs 4142.21 per quintal on December 14 in comparison with Rs 3934.39 per quintal on the identical day final 12 months, in line with authorities’s information.

Meals inflation, which accounts for practically half of the general client worth basket, rose to eight.70% in November, in opposition to 6.61% reported the earlier month, prompting the federal government to take numerous steps to curb costs of important meals objects because it gears up for the final elections in 2024.

In October, the Ministry of Commerce and Trade and the Directorate Normal of International Commerce (DGFT) amended the export restriction on sugar past October 31, 2023, to an indefinite interval.Trade physique ISMA stated the sudden ban on using cane juice for ethanol may have an hostile affect on capability utilisation of mills, placing in danger their Rs 15,000 crore funding within the final three years to arrange vegetation for inexperienced gas. It additionally fears that there may very well be a delay in funds to sugarcane farmers.India skilled scanty rainfall in key sugarcane-producing states akin to Maharashtra and Karnataka that obtained 3% and 18% decrease rainfall on-year. Inadequate water availability led to decrease yields. Because of this, sugarcane manufacturing is anticipated to lower 9% in SS 2023-24 (October 2023 to September 2024), stated CRISIL in a report.