The government lifted the ban on using sugarcane juice and sugar syrup for ethanol production for the 2024-25 ethanol supply year (ESY), reversing last year’s restrictions. In December 2023, the government had prohibited these raw materials for the 2023-24 ESY to maintain sufficient sugar availability for domestic use and stabilize prices.
Now, the food ministry has authorized sugar mills and distilleries to use sugarcane juice, sugar syrup, B-Heavy molasses, and C-Heavy molasses for ethanol production in the 2024-25 ESY, in alignment with agreements with oil marketing companies (OMCs).
Both the food ministry and the petroleum and natural gas ministry will continuously monitor the diversion of sugar for ethanol production relative to total sugar output to ensure enough sugar remains for domestic needs.
As of July, ethanol blending in India had reached 13.3%, up from 12.6% in the 2022-23 season. The total ethanol production capacity in the country is 1,589 crore liters, with OMCs purchasing 505 crore liters for blending in the 2023-24 season. As reported by devdiscourse.com, the government aims to meet a twenty percent ethanol blending target by 2025-26. India, following Brazil, is the world’s second largest sugar producer.
