Govt likely to hold meeting with sugar industry on ethanol supplies

Prime Minister Narendra Modi government is likely to hold meeting with sugar industry today on ethanol supplies, sources told CNBC-TV18 on December 11. However, the meeting has been postponed for the time being,
Indian Sugar Mills Association (ISMA) told CNBC-TV18.

The meeting comes in the backdrop of the Centre directing sugar mills to not use sugarcane juice for ethanol output in 2023-24 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.

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.