Govt allows sugar mills to use 6.7 lakh tons of B-heavy molasses for ethanol production

The government has allowed sugar mills to use 6.7 lakh tonnes of B-heavy molasses as feedstock for making ethanol in the current year, a senior Food Ministry official said on Wednesday. Sugar mills were holding excess stock of B-heavy molasses -- a byproduct of the sweetener -- produced before the ban on its use on December 7 last year.

However, a week later, the government reversed the ban and allowed the use of cane juice and B-heavy molasses, but within the overall cap of a diversion of 17 lakh tonnes of sugar for ethanol production for the 2023-24 supply year (November-October).

"We have permitted sugar mills to use B-heavy molasses lying with sugar mills for ethanol. The same has been communicated to the Petroleum Ministry," the official told PTI.

This will be over and above the capped diversion of 17 lakh tonne of sugar for ethanol production for 2023-24, he added.

Currently, sugar mills have a B-heavy molasses stock of 6.7 lakh tonnes as per the state cane commissioners.

The move comes following the industry's representations to the food ministry to allow B-heavy molasses for ethanol production and improve the finances of the sugar mills.

The industry has stored B-heavy molasses for making ethanol after the crushing is over. But the government banned it suddenly and imposed a cap.

Sugar production is estimated to be between 315-320 lakh tonnes in the ongoing 2023-24 season, excluding diversion of 17 lakh tonnes.