Diverting Surplus Sugar to Ethanol Helps Timely FRP Payments: Government
11-Aug-2026 06:00 PM
Diverting Surplus Sugar to Ethanol Helps Timely FRP Payments: Government
★ The government said diverting surplus sugar for ethanol production has strengthened the financial position of sugar mills, helping them make timely Fair and Remunerative Price (FRP) payments to sugarcane farmers.
★ Sugar diverted for ethanol production fell from 4.3 million tonnes in 2022-23 to 2.4 million tonnes in 2023-24, but increased to 3.5 million tonnes in 2024-25. In the ongoing 2025-26 ethanol supply year, 2.8 million tonnes had been diverted as of June 30, 2026.
★ The use of maize for ethanol has increased sharply, rising from 0.83 million tonnes in 2022-23 to 7.54 million tonnes in 2023-24 and 13.11 million tonnes in 2024-25. In 2025-26, maize use stood at 6.79 million tonnes as of June 30.
★ The government said rising maize demand has helped farmers receive better prices, while sugar diversion has improved mills’ finances and supported timely payments to sugarcane farmers.