The Indian government is considering a significant decision regarding ethanol production by allowing sugar mills to use their surplus B-Heavy molasses as raw material. This move comes amidst favorable sugar market conditions with satisfactory supply and stable prices.
Currently, sugar mills possess over eight lakh tons of B-Heavy molasses. This surplus was generated when its use was banned on December 7th. However, the ban was lifted a week later, permitting the use of both sugarcane juice and B-Heavy molasses. Nevertheless, ethanol production was capped at 17 lakh tons for the 2023-24 supply year (November-October).
Excess Stock of B-Heavy Molasses at Mills
Sources indicate that sugar mills had stocked up on B-Heavy molasses for ethanol production, but the sudden imposition of usage limits caught them off guard. With the exhaustion of their existing reserves, sugar mills are now seeking government permission to utilize the surplus B-Heavy molasses stock for ethanol production. Discussions on this proposal are currently underway.
Sugar Production Estimate for 2023-24 Season
According to industry estimates, sugar production for the 2023-24 season, which began in October, has already exceeded 300 lakh tons, sufficient to meet demand and maintain retail prices. The ongoing season is expected to witness sugar production between 315 to 320 lakh tons.
