Lifting the ban imposed last year, the Centre has allowed the use of sugarcane juice and sugar syrup for ethanol production in the 2024-25 ethanol supply year (ESY). The central government had prohibited the use of sugarcane juice or sugar syrup for ethanol production in the 2023-24 ESY (Dec-Nov) in December last year.
The purpose was to make sugar available in adequate quantity for domestic use and also to keep prices in check. The latest food ministry order said 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 order noted that the ministries of food and petroleum will review the diversion of sugar for ethanol production vis-a-vis sugar production in the country periodically to ensure the availability of sugar for domestic consumption throughout the year. As per official data, ethanol blending in India has reached 13.3 per cent by July of the current season, up from 12.6 per cent during the 2022-23 season.
The total ethanol production capacity in the country presently stands at 1,589 crore litres. Of this, OMCs bought 505 crore litres of ethanol for blending purposes during the 2023-24 season. The Centre aims to achieve 20 per cent ethanol blending target by 2025-26.
