Government directs sugar mills to not use sugarcane juice for ethanol production to keep prices in check

New Delhi: The government on Thursday directed all sugar mills and distilleries not to use sugarcane juice for production of ethanol in order to ensure adequate supply of sweetener for domestic consumption and keep prices under check.

However, the food ministry, in a letter to Managing Directors and Chief Executive Officers of all sugar mills and distilleries, said that supply of ethanol to oil marketing companies from B-heavy molasses will continue.

"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.

"Supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-Heavy molasses will continue," Food ministry said in the letter.