The price of ethanol produced from B&C heavy molasses must rise, according to ISMA

 The price of ethanol produced from B&C heavy molasses must rise, according to ISMA

In order to identify solutions that benefit farmers, consumers, oil marketing businesses, and the sugar sector as a whole, ISMA said that it is dedicated to collaborating closely with the government and other stakeholders.

Due to a potential drop in local sugarcane output, the government prohibited on December 7 the use of sugarcane juice and sugar syrup for ethanol production in the 2023–24 ethanol supply year (November–October).

In order to make up for the losses incurred by mills as a result of the prohibition on using sugarcane juice for the manufacturing of ethanol, the Indian Sugar Mills Association (ISMA) has requested from the government an increase in the price of ethanol produced from B and C heavy jaggery. Proceed. Due to a potential drop in local sugarcane output, the government prohibited on December 7 the use of sugarcane juice and sugar syrup for ethanol production in the 2023–24 ethanol supply year (November–October). However, usage of cereal grains and heavy jaggery (B and C) is allowed, subject to a monthly assessment.

Acknowledging the government's goal to strike a balance between consumer demands and agricultural interests, ISMA has put forward certain steps to guarantee a seamless transition, reduce any interruptions, and assist farmers. The statement read, "Due to this stoppage, there will be a huge reduction in the crushing capability of sugar mills, leading to a delay in the crushing season, and that will result in loss not only to the mills, but even more significantly to the farmers, whose payments will take longer to arrive as well as Those who are "not able to organize the sugarcane fields in time for further use."

One of the main recommendations made by ISMA was that the government take into account raising the price of ethanol made from B and C heavy molasses as a compensating measure. This will provide sugar mills sufficient cash flow to fulfill their financial commitments to farmers. The price of ethanol from the B heavy molasses route is Rs 60.73 per litre, while from the C heavy molasses route, it is determined by the government at Rs 49.41 per litre.

ISMA has recommended permitting the remaining contracted/canceled juice amount to be transformed into B-heavy molasses in order to ensure the ethanol supply continuity for the ethanol blending program. This will not have a major effect on the production of sugar, but it will provide oil marketing corporations access to more ethanol. ISMA has asked that distilleries be permitted to convert current juice supplies into ethanol by December 10; the ethanol generated will be provided to oil marketing firms by December 20 in order to prevent any unexpected problems and guarantee a seamless transition. Will go.

"The association believes confident the proposed measures will facilitate the smooth implementation of the recent order while maintaining the continued success of the programme," said ISMA. In order to identify solutions that benefit farmers, consumers, oil marketing businesses, and the sugar sector as a whole, ISMA said that it is dedicated to collaborating closely with the government and other stakeholders.

The nation's sugar output is expected to decrease from 37.3 million tonnes in during the previous growing season to 32.3–33 million tonnes in the 2023–24 season (October–September), based on predictions from the food ministry.