On Wednesday an official Senior Food minister stated that the government had allowed the sugar mill to use 6.7 lakh tonnes of B heavy molasses as feedstock to produce ethanol this year. This decision helps sugar mills deal with their extra stock after the ban on using B-heavy molasses last December. On December 7 the government banned the use of ‘ sugarcane juice and sugar syrup ‘ for ethanol production for the year 2023-24, this step was taken to keep a check on the availability of adequate sugar for domestic consumption and keep the prices under control. In a letter by the food ministry, it said that ” supply of ethanol received by the oil marketing companies made of B heavy molasses will continue.
This decision of the minister backfired as it resulted in low production of sugar in the 2023-24 marketing year. After the government’s decision, the Managing Director Of The National Federation of Cooperative Sugar Factories ( NFCSF) Prakash P.Naiknavare, accepted the decision and noted the point that there is a huge stock of ethanol made up of B- heavy molasses in the country. It is a major concern for the industries. P.Naiknavare questioned the letter regarding the production of ethanol with b- heavy molasses whether this arrangement will end after the tender or not , as it is not mentioned clearly . This decision is implemented to ensure that there is enough sugar for domestic use.
The NFCSF warned that the sudden implementation of the rule could disturb the industry and harm India’s image of being a leader in green energy and ethanol production. P.Naiknavare has asked PM Modi and home minister Amit Shah for a meeting to discuss the effect of ban of ethanol production with sugar and tell about the availability of enough Sugar , allowing Sugar import and subsidies might be a better option. Deputy chief minister Ajit Pawar warned about the losses due to the restriction of ethanol production and mentioned meeting Nitin Gadkari to find out a solution soon.