Funding of Rs 15,000 cr in danger resulting from sudden ban on use of cane juice for making ethanol: ISMA

The Centre lately banned use of cane juice for ethanol in view of seemingly drop in sugar manufacturing throughout 2023-24 advertising and marketing 12 months (October-September).

Indian Sugar Mills’ Affiliation (ISMA) demanded that the federal government revise quickly the costs of ethanol produced from B-heavy and C-heavy mollases, a by-product of sugar, to enhance the monetary well being of the millers.

“The sudden ban on use of sugar cane juice/syrup for ethanol in 2023-24 provide 12 months with instant impact, is a giant deterrent for the sugar business,” ISMA President Aditya Jhunjhunwala stated at its 89th annual common assembly.

The ban has put the business in a tough state of affairs, he stated, and urged the federal government to rethink the identical.

The worth of ethanol from B-heavy and C-heavy molasses have to be revised and introduced instantly as this could assist mills cowl the seemingly losses from the current ban, Jhunjhunwala stated. “With the bottom sugar worth on the earth, no sugar export this 12 months and ban on ethanol manufacturing from sugarcane juice, business is going through difficulties to uphold its promise of well timed fee to farmers,” Jhunjhunwala stated. India exported 64 lakh tonnes of sugar within the 2022-23 advertising and marketing 12 months. It has achieved 12 per cent mixing of ethanol with petrol in 2022-23 provide 12 months (November to October).

Jhunjhunwala stated the full sugar manufacturing in 2023-24 is anticipated at 325 lakh tonnes (with out diversion to ethanol) whereas home consumption is seen at 285 lakh tonnes.

He stated the federal government is more likely to permit diversion of 17 lakh tonnes of sugar for ethanol manufacturing in 2023-24 provide 12 months.

Jhunjhunwala stated there’s a scope for diversion of one other 17-20 lakh tonnes of sugar for ethanol.

He demanded that the federal government evaluation the sugar manufacturing and ethanol provide round January 15 and take appropriate choice.

Jhunjhunwala stated the business has invested about Rs 15,000 crore within the final three years for creating capability for ethanol manufacturing and “this enormous funding is in danger”.

The ethanol manufacturing capability has elevated to 766 crore litres from 280 crore litres three years again.

The business demanded that the worth of ethanol produced from B-heavy molasses be raised to Rs 64 per litre from Rs 59 per litre.

The speed for C-heavy molasses must be raised to Rs 58-59 per litre from Rs 49 per litre, they stated.