Govt allows sugar mills to use existing stocks of B heavy molasses for ethanol production

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ethanol to be used in the next cycle, the official added. This decision underscores the government's comfort with the current level of sugar production relative to domestic consumption needs, said the official who did not want to be identified. The directive comes at a crucial time as it aligns with the end of the sugarcane crushing season and supports India's ambitious ethanol-blending targets—E15 by 2023-24 and E20 by 2025-26.

It also aims to expedite payments to sugarcane farmers, thus enhancing their financial stability. As of March, India had achieved an ethanol blend of 11.96% with petrol. Ethanol, a 99.9% pure alcohol, is added to fuel to reduce the nation's dependence on imported crude oil.

Ethanol in India is primarily produced from sugarcane-based molasses and grain-based sources. Among these, B-heavy molasses is a major contributor, accounting for 60% of ethanol production, followed by sugarcane juice at 20%, while C-heavy molasses has a minor role. The stock of B-heavy molasses is expected to support the production of 2.37 million tonnes of ethanol in the current supply year, which started in November.

Concurrently, sugar production for the 2023-24 season is projected to be slightly higher than initially estimated, at 31.8 million tonnes, despite being lower than the previous year's 32.9 million tonnes. The monthly domestic sugar consumption currently ranges between 2.2 and 2.3 million tonnes. This move is also significant due to the legal challenges it addresses, as over thirty court cases had been filed in Karnataka and Maharashtra by sugar mills regarding the previous restrictions on molasses use.