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Informist, Friday, Nov. 8, 2024

 

 

NEW DELHI – The National Federation of Cooperative Sugar Factories has asked the government to increase the share of ethanol supply from sugarcane feedstocks in 2024-25 (Nov-Oct) to improve mills' financial health, the federation said in a press release on Friday. The federation has shot off a letter to the food secretary in this regard. 

 

Of the total 8.37 billion litres of ethanol to be supplied to oil marketing companies in the ongoing ethanol year, around 62.7% will be sourced from grains and 37.3% from sugarcane, results of the recent ethanol supply tender showed. Oil companies buy ethanol from distilleries to blend with petrol to promote green mobility and achieve blending targets.

 

In 2021-22, around 83% of ethanol came from sugarcane by-products, which fell to 37% in 2024-25 due to the government's steps to curb ethanol production from sugar, Prakash Naiknavare, managing director of the federation said. In December 2023, the government had restricted ethanol production from sugarcane feedstocks to ensure sufficient availability of the sweetener.

 

The federation has asked for an upward revision in ethanol rates to maintain the sugar industry's contribution to the ethanol blending programme. In 2023-24 (Nov-Oct), the Centre did not increase rates of ethanol for most sugarcane feedstocks to ensure sufficient availability of the sweetener. It only increased the price of ethanol from C-heavy molasses by INR 6.87 to INR 56.28 a ltr last year. 

 

For 2024-25, the federation has asked ethanol made from sugarcane juice to be increased by INR 7.53 to INR 73.14 per litre, and those from B-heavy molasses by INR 6.97 to INR 67.70 per litre. According to an ETNow report on Friday, the Ministry of Petroleum and Natural Gas has proposed the Cabinet to hike ethanol prices by INR 4-INR 5 per litre. 

 

Citing the rise in fair and remunerative prices of sugarcane, the sugar industry has been urging the government to increase the minimum selling price of sugar and revise rates of ethanol made from sugarcane by-products. In February, before the General Election, the Centre announced a hike of INR 25 in the fair and remunerative price of sugarcane to 340 rupees per 100 kg for the 2024-25 (Oct-Sep) sugar season. 

 

"However, despite the increased FRP (fair and remunerative prices), the price of ethanol from B-Heavy molasses and sugarcane juice has not been adjusted since more than a year thereby reducing economic viability of the sector," the federation said.  End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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