Center removes cap on sugar diversion for ethanol production

In a notable policy shift, the central government has permitted sugar mills and distilleries to use cane juice or syrup to produce ethanol for the upcoming Ethanol Supply Year 2024-25, starting 1^st November  2024. This update, announced in a notification on 29^th August 2024, removes the previous cap on sugar diversion for ethanol production. Additionally, distilleries can now purchase up to 2.3 million metric tonnes of rice from the Food Corporation of India for ethanol production.

In addition to cane juice and syrup, the new policy allows for the use of B-Heavy molasses and C-Heavy molasses for ethanol production. According to the Ministry of Consumer Affairs, Food and Public Distribution, "Sugar mills and distilleries are allowed to produce ethanol from sugarcane juice/sugar syrup, B-Heavy molasses as well as C-Heavy molasses during ESY 2024-25 as per the agreement with OMCs."