NFCSF welcomes government’s ethanol move, urges resolution of long-standing demands
The central government has lifted the ban on ethanol production from sugarcane juice, sugar syrup, and B Heavy molasses, allowing full-capacity production for the 2024-25 season. This decision aims to boost ethanol production, support sugar mills financially, and meet the goal of a 20 percent ethanol blending ratio by 2025-26. The NFCSF has welcomed this move but calls for urgent announcements on ethanol purchase rates and the minimum sugar price
In a significant development, the central government has lifted its earlier ban on the production of ethanol from sugarcane juice, sugar syrup, and B Heavy molasses. This decision, initially imposed on December 6, 2023, was relaxed on December 15, 2023, but was fully withdrawn on August 29, 2024. Distilleries across the country are now permitted to produce ethanol from these materials to their full capacity during the 2024-25 season.
As of late July, the country's ethanol production capacity stood at 1,590 crore liters, but only 505 crore liters were purchased by oil companies during the 2023-24 fiscal year. The ethanol blending ratio in petrol has reached 13.3 percent, with the central government aiming to raise it to 20 percent by the end of 2025-26. The recent government decision is expected to boost ethanol production and increase the diversion of sugar for ethanol, which will enhance the financial health of sugar factories.
The National Federation of Cooperative Sugar Factories Limited (NFCSF) welcomed the government's decision to lift the cap on sugar diversion for ethanol production. NFCSF President Harsh Vardhan Patil expressed gratitude to Prime Minister Narendra Modi and ministers Amit Shah, Hardeep Singh Puri, and Prahlad Joshi for their support. Patil noted that NFCSF had actively pursued this issue with various government officials, including presenting their case at a conference in New Delhi on August 10, 2024.
