Government Lifts Ban on Ethanol Production from Sugarcane Juice and Syrup for 2024-25

The government reversed last year's ban and will allow the use of sugarcane juice and sugar syrup for ethanol production during the 2024-25 ethanol supply year. This decision is aimed at boosting ethanol blending, which has increased to 13.3% this season. India targets a 20% blending goal by 2025-26.

The government on Thursday lifted a ban on the use of sugarcane juice and sugar syrup for ethanol production in the 2024-25 ethanol supply year (ESY), reversing last year's prohibition.

In December 2023, the government had restricted the use of these raw materials for the 2023-24 ESY to ensure adequate sugar availability for domestic consumption and stabilize prices.

The Food Ministry has now allowed sugar mills and distilleries to produce ethanol from sugarcane juice, sugar syrup, B-Heavy molasses, and C-Heavy molasses for ESY 2024-25, as per agreements with oil marketing companies (OMCs).

Both the Food Ministry and the Petroleum and Natural Gas Ministry will regularly assess the diversion of sugar for ethanol production compared to sugar output to ensure sufficient supply for domestic consumption.

Ethanol blending in India reached 13.3% by July of the current season, up from 12.6% during the 2022-23 season, according to official data.

The country's total ethanol production capacity stands at 1,589 crore litres, with OMCs purchasing 505 crore litres for blending during the 2023-24 season.

The government aims to achieve a 20% ethanol blending target by 2025-26. Notably, India is the world's second-largest sugar producer after Brazil.

(With inputs from agencies.)