Instructions to sugar mills to stop ethanol production

Instructions to sugar mills to stop ethanol production

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Union Food Ministry has advised all sugar mills in the country not to use sugarcane juice for ethanol production.

Union Ministry of Food should not use sugarcane juice for ethanol production.

In this regard, the Ministry has also written to the Managing Directors and Chief Executive Officers of the sugar mills.

In the letter, it has been requested that sugarcane juice should not be used for ethanol production during the current ethanol distribution year.

It has also been announced that ethanol produced from ‘B’ category A molasses will continue to be distributed to oil companies.

The reason, Production of ethanol from sugarcane juice affects sugar production. Also, sugarcane juice, which is used to make ethanol, is not enough for sugar mills.

Thus the instructions to the plants are,

The central government has revoked the order that gave permission for the production of ethanol from karmbu juice. Thus, the government plants should stop the production of ethanol from sugarcane juice.

India is the second largest producer of sugar in the world. However, the government is taking various measures so that domestic sugar demand is not affected.

Due to the impact on sugar production and distribution due to the war in Russia and Ukraine, the price of sugar in the domestic market also started to increase.

Thus, in the marketing year that ended last September, the government gave permission to export only 62 lakh tonnes of sugar.

In this case, a Karumba government official said that the government’s decision has been taken

The country’s fuel retailers buy ethanol from sugar mills to blend with petrol.

Ethanol produced especially from sugarcane juice and B-category velocipa is being bought at higher prices.

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Production is low, Also, the Central Ministerial Committee, which has analyzed the current demand and supply situation of the country, has decided to focus on sugar production this year, which is a major reason for this.

Sugar production in Maharashtra and Karnataka, the leading sugarcane producing states, is in question this year due to erratic rains.

Sugar mill stocks fall

Even before the announcement of the government’s decision on ethanol, sugar producers’ shares started to fall in the national stock market due to expectations.

Dalmia Bharat Sugar…..407.00 decline…5.85 per cent.

Balrampur Sugar Mills…402.70 decline..6.74 percent.

Sri Renuka Sugars….47.25 down… 4.16 percent.

Bajaj Hindustan Sugar….28.60 down…5.45 percent.

The Sugar Mills Association of India has also said that the country’s sugar production will fall by 8 percent to 3.37 crore tonnes in the current marketing year, which began on October 1.

In this case, due to the decrease in sugar production, the price of sugar in the country has increased to the highest level in the last 14 years

Ethanol production will be affected by this notification. As a result, fuel prices are likely to rise. Also, sugar production will increase.

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