The central government on December 7 notified the mills to not use sugarcane juice for ethanol output in 2023-2024 to check sugar prices. Ethanol is used for petrol blending.
In a letter to Managing Directors and Chief Executive Officers of all sugar mills and distilleries, the government added sugar mills can continue to produce ethanol from B-Heavy molasses to meet requirement for blending in petrol.
''In exercise of powers conferred under clause 4 & 5 of the Sugar (Control) Order 1966, it is directed to all sugar mills and distilleries not to use sugarcane juice /sugar syrup for ethanol in ESY (ethanol supply year) 2023-24 with immediate effect.
''Supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-Heavy molasses will continue,'' Food ministry said in the letter.
Earlier this year, the Centre had announced a Rs 10 per quintal hike in sugarcane's Fair and Remunerative Price (FRP), which is the minimum price that mills have to pay to sugarcane growers, to Rs 315 per quintal for the 2023-24 season starting October.
In the current 2022-23 marketing year, about 3,353 lakh tonnes of sugarcane worth Rs 1,11,366 crore has been purchased by sugar mills.
During 2013-14, the mills had procured sugarcane worth Rs 57,104 crore.
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