A new order from India's Ministry of Food overturns an earlier ban on the use of sugarcane for ethanol production, allowing the production of ethanol from sugarcane juice and heavy B molasses in 2023-24**.
This reversal comes after India decided in December to ban the use of sugarcane juice or syrup to produce ethanol in 2023-24.
In a directive issued to all sugar mills and distilleries, the ministry said the Oil Marketing Corporation of India (OMC) would issue a "revised allocation" for "sugarcane juice and B heavy molasses ethanol" for 2023-24** to "every distillery". OMCS has reportedly been asked to notify the Ministry of Food after signing the revised contract.
Upon receipt of the revised allotment, sugar mills and distilleries were required to strictly follow the revised quantities of cane juice and heavy B molasses**ethanol.
Sugar exports were banned earlier in order to ensure that there is enough sugar** in the domestic market due to insufficient rainfall affecting India's sugarcane crop.
* Sugar production in 2023-24 (October-September) is estimated to fall to 32.3 million tonnes versus 37.3 million tonnes in the previous season. Domestic consumption is expected to be around 28 million to 29 million tonnes.
At the recent G20 summit, India introduced the Global Biofuels Alliance, whose main goal is to increase the blending of ethanol with gasoline to 20%. Notably, by June 2022, India had already surpassed its ethanol blending target of 10% ethanol for the 2021-22 ethanol** year (ESY), ahead of the originally planned November 2022. Building on this success, the country has set a target of 20% blending by 2025-26.