Ethanol in India: The government has decided to lift the ban on making ethanol from sugarcane juice. Issuing a new order on Saturday, the Food Ministry said that sugarcane juice and B-heavy jaggery will continue to be used in the production of ethanol. Due to this, there will be no reduction in the production of green fuel ethanol in 2023-24. Also the supply will not be interrupted. Earlier, the government had banned the use of sugarcane juice in ethanol production.
The ban was imposed due to rising sugar prices
On December 7, the government had banned the use of sugarcane juice and sugar syrup for ethanol production. The government had said that this decision was taken in view of the rising prices of sugar in the domestic market and uninterrupted supply. Oil marketing companies will also re-issue production targets for each distillery. After this, the companies will also have to inform the Food Ministry about their decision. Besides, sugar mills and distilleries will also have to provide production information.
Will not be used in the production of spirit and liquor
However, according to the new instructions of the Food Ministry, sugarcane juice and heavy jaggery will not be used in the production of spirits and liquor. All jaggery based distilleries will use C-heavy jaggery to make ethanol.
Sugar production likely to decline
Food Secretary Sanjeev Chopra said that this decision was taken on Friday during the meeting of ministers. The government decided to lift the ban on the use of sugarcane juice and B-heavy jaggery. For the current financial year 2023-24, 17 lakh tonnes of sugar will be used for ethanol use. Before the ban, 6 lakh tonnes of sugar had been used in ethanol production. The government estimates that sugar production in the country will reduce to about 33 million tonnes. Sugar production in the last season was 3.73 crore tonnes.
Investment worth Rs 15 thousand crore was stuck
ISMA, an organization of sugar companies, had said that the ban on making ethanol from sugarcane juice would have a negative impact on the efficiency of sugar mills. Also, due to this decision, investment worth Rs 15,000 crore is in danger. Also, ISMA had expressed apprehension that due to sudden ban there may be delay in payment to sugarcane farmers.
After the ban on making ethanol from sugarcane juice, a huge fall was seen in the stocks related to sugar and ethanol.
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