After government hiked the ethanol prices to boost the ethanol production in India, major sugar-producing states are eyeing to invest in increasing ethanol production capacity. According to the reports, Uttar Pradesh government has approved setting up of distillery to produce ethanol directly from 100 per cent cane juice.
Distillery will be set up by Uttar Pradesh State Sugar Corp in Pipraich in Gorakhpur district. And it will have the capacity to crush, 1,250 tonnes of sugarcane a day and produce 95,000 litres of ethanol.
Recently, the government increased the price of ethanol from C heavy molasses from Rs.43.46 per litre to Rs.43.75 per litre, and the price of ethanol from B heavy molasses hiked from Rs.52.43 per litre to Rs.54.27 per litre. Price of ethanol from sugarcane juice/sugar/sugar syrup route was fixed at 59.48 per litre.
Millers in India are struggling because of unsold stocks. Therefore, the government is focusing on ethanol production to strengthen the financial condition of sugar mills. The Central government has the vision to achieve 20 per cent ethanol blending with petrol by 2030 and is moving in the same direction. Experts believe the production of ethanol will aid sugar mills to improve the financial condition as they are struggling with depressed sugar prices, surplus stocks and piling cane arrears.
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