Representative image for onions and sugarcane.
Credit: PTI Photo
In an effort to boost domestic supply and keep a price check, the government has banned onion exports until March 2024, according to a report by Times of India.
In an additional move to have a sufficient supply of sweetener for domestic consumption, the government has ordered all sugar mills and distilleries to refrain from using sugarcane juice for the production of ethanol in the time period of 2023-24.
The move comes amid government's decision to restrict the export of onions and use of sugarcane syrup to produce ethanol in order to increase their availability on the domestic market.
The Centre had in October agreed to increase the sale of onion stock at retail markets at a subsidised rate of Rs 25 per kg.
In order to guarantee sufficient availability of the sweetener in the local market, it had placed export restrictions on sugar and set a minimum export price (MEP) of $800 per tonnes on onion export from October 28 to December 31 of this year.
However, the food ministry stated that the supply of ethanol to oil marketing companies from B-heavy molasses will continue, as informed to managing directors and chief executive officers of all sugar mills and distilleries.
"In exercise of powers conferred under clause 4 & 5 of the Sugar (Control) Order 1966, it is directed to all sugar mills and distilleries not to use sugarcane juice /sugar syrup for ethanol in ESY (ethanol supply year) 2023-24 with immediate effect..." food ministry said in the letter.
The publication quoted sources who said that as a result of this action, the domestic market will have access to an extra 18 to 20 lakh tonnes of sugar. According to Uppal Shah, co-founder and CEO of AgriMandi.live Research, "there is sufficient sugar in the country to meet domestic consumption demand, in light of lesser sugar production in the country."
He stated that "going forward it will be important to see how the ethanol blending target is met in the current season, with ethanol supplied mainly from B-Heavy molasses, broken rice and maize."
(With PTI inputs)