The Union government has introduced a significant policy change, permitting sugar mills to use cane juice or syrup to produce ethanol for the Ethanol Supply Year (ESY) 2024-25, beginning November 1, 2024. This update, revealed in a notification on August 29, 2024, eliminates the previous limit on the amount of sugar that could be diverted for ethanol production.
Along with cane juice and syrup, the new policy also allows the use of B-Heavy 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.”
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