Government Lifts Ban On Ethanol Production From Sugarcane Juice

The Indian government lifted the ban on using sugarcane juice and sugar syrup for ethanol production in the 2024-25 ethanol supply year (ESY). This reversal comes after a December 2023 decision to restrict these raw materials to ensure adequate sugar availability and stabilize domestic prices.

The Food Ministry announced that sugar mills and distilleries are now permitted to produce ethanol from sugarcane juice, sugar syrup, B-Heavy molasses, and C-Heavy molasses for the 2024-25 ESY. This decision aligns with agreements between the Food Ministry, the Petroleum and Natural Gas Ministry, and oil marketing companies (OMCs). Both ministries will closely monitor the diversion of sugar for ethanol production to balance it with domestic sugar supply needs.

As of July this year, ethanol blending in India has reached 13.3%, up from 12.6% in the previous season. 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. India aims to achieve a 20% ethanol blending target by the 2025-26 season.

India, the world’s second-largest sugar producer after Brazil, continues to advance its ethanol production efforts as part of its broader energy and agricultural policies.