India Empowers Farmers: Historic Decision to Lift Curbs on Sugar Mills and Distilleries Using Cane Juice for Ethanol
India has removed restrictions on sugar mills and distilleries using cane juice to produce ethanol, a move poised to extend export limits from the world’s second-largest sugar grower and tighten the global supply. Starting November, ethanol producers will be permitted to utilize sugarcane juice, B-heavy and C-heavy molasses during the 2024-25 season, according to the food ministry. Authorities will periodically review these measures to ensure sufficient sugar supply for domestic needs.
In the previous year, India halted the use of cane juice and syrup for ethanol production to bolster sugar reserves after insufficient rainfall impacted crops. Concurrently, the country imposed export curbs extended in October to stabilize local prices ahead of national elections. Recent benchmark sugar prices have surged due to fires in Brazil, the leading producer, prompting some mills to lower their output estimates.
Easing India’s restrictions aims to help Prime Minister Narendra Modi achieve a government target of incorporating 20% ethanol into gasoline blends by November 2025. Following the announcement, shares of India’s sugar millers soared: Triveni Engineering and Industries Ltd. advanced over 10%, Shree Renuka Sugars Ltd. and Bajaj Hindusthan Sugar Ltd. rose nearly 10%, while Dwarikesh Sugar Industries Ltd. and Balrampur Chini Mills Ltd. gained up to 8%. A Bloomberg index of the top 15 sugar millers hit a record high.
Additionally, the government has permitted grain-based ethanol producers to purchase rice from state reserves through an electronic auction by the Food Corp. of India. The nation plans to sell up to 2.3 million tons of rice between August and October, further supporting its ethanol production goals.
Original Story https://www.livemint.com/news/india/india-lifts-curbs-on-sugar-mills-distilleries-using-cane-juice-to-make-ethanol-11725064382924.html
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