Government directs sugar mills to not use sugarcane juice for ethanol production to keep prices in check

Subject : Geography

Section: Economic geography

Context:

The Centre banned the use of ‘sugarcane juice and sugar syrup’ for ethanol production in the 2023-24 supply year, in order to maintain adequate sugar availability for domestic consumption and to keep prices under check. But, the government has allowed use of ‘B-molasses’ for ethanol production in 2023-24.

Details:

The directive was issued as per the clause 4 and 5 of the Sugar (Control) Order 1966.
The decision comes in the backdrop of estimated fall in sugar production in 2023-24 marketing year.
- Indian Sugar Mills Association (ISMA) has projected a 9 per cent fall in gross sugar production at 337 lakh tonnes for the 2023-24 marketing year.
- India exported 61 lakh tonnes of sugar during the 2022-23 marketing year, as against a record 112 lakh tonnes in the previous year.
To contain food inflation, the Central government has also banned exports of wheat and broken rice. It has also fixed minimum export price (MEP) for basmati rice.

Ethanol:

Ethanol, also known as ethyl alcohol, is a biofuel produced from various sources such as sugarcane, corn, rice, wheat, and biomass.
The production process involves the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.
Ethanol is 99.9% pure alcohol that can be blended with petrol to create a cleaner fuel alternative.
Apart from being a fuel additive, ethanol production yields valuable byproducts like Distillers’ Dried Grain with Solubles, and Potash from Incineration Boiler Ash that find applications across various industries.

Ethanol production in India:

Ethanol production in India was mainly based on ‘C-heavy’ molasses, with a sugar content of 40-45%, yielding 220–225 liters of ethanol per tonne.
India explored direct sugarcane juice for ethanol production, increasing yield and efficiency.
The country diversified its feedstocks by including rice, damaged grains, maize, jowar, bajra, and millets.
Ethanol yields from grains are higher compared to molasses, with rice producing 450-480 liters and other grains 380-460 liters per tonne.
Sugar mills diversified to use rice, damaged grains, maize, and millet as feedstocks.
Leading sugar companies installed distilleries that can operate on multiple feedstocks throughout the year.

Types of Molasses:

A Molasses (First Molasses): An intermediate by-product from initial sugar crystal extraction, containing 80-85% dry matter (DM). Should be inverted to prevent crystallization if stored.
B Molasses (Second Molasses): Similar DM content as A molasses but with less sugar and no spontaneous crystallization.
C Molasses (Final Molasses, Blackstrap Molasses, Treacle): The end by-product of sugar processing, containing significant amounts of sucrose (about 32 to 42%). It does not crystallize and is used as a commercial feed ingredient in liquid or dried form.

Government Initiatives to Promote Ethanol Blending in India: