Suryaa Business Desk: Surya Agriculture & Policy Desk, New Delhi: To keep sugar prices in check in the domestic market and ensure adequate stocks for the festive season, the Centre... Surya Agriculture & Policy Desk, New Delhi: The central government has taken a key decision to keep sugar prices in check in the domestic market and ensure adequate stocks in view of the festive season. The Union Ministry of Food and Public Distribution has directed all state governments and sugar commissioners to completely prevent diversion of sugar products such as sugarcane juice, sugar syrup, and B-heavy molasses for ethanol production. These steps are part of the strategy to maintain adequate buffer stock to avoid shortage of domestic sugar.
Highlights of Orders & Terms: Restrictions on sugar-based ethanol: The Center has clarified that sugar mills should completely stop using sugarcane juice or sugar syrup directly for ethanol production. Only C-heavy molasses is allowed: Only C-heavy molasses, the final by-product remaining after the sugar manufacturing process is over, will be allowed to produce ethanol. This will not affect domestic sugar production at all.Priority on Cereal Based Blending: To avoid compromising the objectives of Petrol Blending Program (EBP), the government is focusing more on supply of Maize (Maize), Damaged Food Grains (DFG), and FCI rice based ethanol. Impact on Farmers, Mills & Monitoring: The Center has issued guidelines to states to continuously monitor daily production and stock details of sugar mills and distilleries in the states.
It has been directed to carry out inspections with enforcement teams to prevent unauthorized diversion of sugar anywhere. Officials hope that this decision will help to stabilize the retail prices of sugar in the open market.
