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.
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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.
Indian Sugar Mills Association (ISMA) demanded that the government revise soon the prices of ethanol made from B-heavy and C-heavy mollases, a by-product of sugar, to improve the financial health of the millers.