Govt okays use of B-heavy molasses stock at sugar mills for ethanol production

The government has allowed the use of the B-heavy molasses (BHM) lying with sugar mills to make ethanol, which may see oil marketing companies (OMCs) reallocating ethanol quota to distilleries in the next 2-3 days. The move will not affect sugar availability as fresh B-heavy molasses will not be used for ethanol production, official sources said.

“Only the BHM stock already with sugar mills until March 31 is to be converted,” an official source said. The government hopes to generate an additional 60 crore litres of ethanol to help meet the targeted 15 per cent ethanol blending with petrol for the 2023-24 ethanol supply year (November-October), against 12 per cent achieved so far.

Industry data shows that OMCs have targeted purchase of 235 crore litres of ethanol from sugar-based distilleries and 166 crore litres from grain-based plants. Nearly 130 crore litres of ethanol have been supplied by sugar-based distilleries and 100 crore litres by grain-based plants.

According to the fortnightly production update from the Indian Sugar & Bio-energy Manufacturers Association (ISMA) on April 16, domestic sugar output touched 310.93 lakh tonnes (lt) until April 15, from October 1, 2023, as against 312.38 lt in the year-ago period. This excludes the quantity diverted to ethanol production.

ISMA is hopeful of achieving 320 lt sugar production this year (excluding diversion to ethanol), according to its director general, Deepak Ballani.