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Informist, Monday, Sept. 1, 2025

 

MUMBAI – The Centre has allowed sugar mills and distilleries to produce ethanol from sugarcane juice, sugar syrup, B-Heavy Molasses and C-Heavy Molasses without any restriction during the ethanol supply year 2025-26 (Nov-Oct), the Department of Food and Public Distribution said in a notification Monday. 

 

The department, in coordination with the Ministry of Petroleum and Natural Gas, will periodically review the diversion of sugar to ethanol production. It will also review the country's sugar production, ensuring the availability of sugar for domestic consumption throughout the year, it said.

 

The government had imposed a temporary ban on the use of sugarcane juice and B-heavy molasses for ethanol production in December 2023, which was lifted in August 2024. This restriction was initially implemented to ensure a stable domestic sugar supply and control prices, but was reversed once sugar production was deemed sufficient to meet demand.

 

India's gross sugar production is likely to rise 18.3% to 34.9 million tonnes in the 2025-26 sugar season, according to the Indian Sugar Mills & Bio-Energy Manufacturers Association's preliminary estimates. Gross sugar output is estimated before sucrose diversion for ethanol production. Last year it was 29.5 million tonnes. Due to expectations of higher sugar availability, restrictions on sugar-based feedstocks for diversion towards ethanol have been removed.

 

Joint Secretary (Sugar) Ashwini Srivastava on Aug. 11 said that sugar diversion is likely to be 4.0-5.0 million tonnes in 2025-26, in line with industry estimates of 5 million tonnes. Srivasatva had said his projections were based on the expectation of a good sugar output next season.  End

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

 

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