Ethanol Blending: Government Greenlights Ethanol Production from Sugarcane Juice and B-Molasses

Source: This post is based on the article “Centre allows use of sugarcane juice, B-molasses to make ethanol; caps sugar diversion at 17 lakh tonnes in 2023-24” published in “The Hindu” on 16th December 2023.

Why in the News?

The government lifted the ban on using sugarcane juice for ethanol production, allowing both sugarcane juice and B-heavy molasses for green fuel. The sugar diversion limit is set at 17 lakh tonnes, enforced in the supply year 2023-24.

Why has the Government earlier directed not to use sugarcane juice for making ethanol?

1) In India, Ethanol is produced from multiple sources. It is largely produced through sugarcane based molasses and grain-based sources as feedstock. 

2) In sugarcane, ethanol is either produced through sugarcane juice or syrup or B-heavy molasses and C-heavy molasses.

3) When ethanol is produced from sugarcane juice or syrup directly, the actual sugar is diverted for making ethanol. 

4) Whenever, there is a low sugarcane production, this impacts the sugar availability for domestic consumption which in turn leads to rise in sugar price.

5) To avoid this, the government of India has directed sugar mills not to use sugarcane juice or syrup for making ethanol.

Why the Government reversed its decision?

1) The latest move follows appeals from the sugar industry, urging a review of the December 7th order that swiftly banned the use of cane juice and sugar syrup.

2) That order would also impact the ethanol blending target setup by the Government. The Government has set a target of achieving 20% ethanol blending with petrol by 2025.

What is the significance of lifting ban on using sugarcane juice for making ethanol?

1) It will help in achieving the target of 15 percent blending of ethanol with petrol in the 2023-24 supply year.

2) It will also contribute to balancing the availability of sugar for both domestic consumption and ethanol production.

What is Ethanol?

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