NFCSF welcomed govt s decision to allow 7 lakh tonne of B-heavy molasses for ethanol, aiding in ethanol production and improving sugar mills finances. This move will release around Rs 700 crore from remaining stocks, impacting selling rate and distillation projects.
The decision of the central government to allow use of the 7 lakh tonnes of B Heavy Molasses for ethanol production will help the sugar industry get a revenue of Rs 2300 crores, said National Federation of Cooperative Sugar Factories (NFCSF), which represents the cooperative sugar mills of the country.
The government has allowed sugar mills to use 6.7 lakh tonnes of B-heavy molasses as feedstock for ethanol production in the current year. The move follows the industry s request to the food ministry to allow B-heavy molasses for ethanol production and improve the finances of sugar mills. The government reversed the ban and allowed cane juice and B-heavy molasses within the overall cap of 17 lakh tonnes of sugar for ethanol production for the 2023-24 supply year.
Currently, sugar mills are holding an excess stock of more than 8 lakh tonnes of B-heavy molasses, a byproduct of the sweetener, produced before the ban on its use on December 7, last year.
Food Secretary Sanjeev Chopra has said that there are no plans to permit additional diversion of sugar for ethanol production during the current 2023-24 supply year. In December of the previous year, the government imposed a cap on sugar diversion at 17 lakh tonnes for the current supply year (November-October). Additionally, it authorized the utilization of both cane juice and B-heavy molasses within the overall cap for ethanol production.