Request to increase the price of ethanol produced from sugarcane juice

31-Jan-2025 08:15 PM

It sounds like the Indian Sugar and Bio Energy Manufacturers Association (ISMA) is seeking a fair adjustment in the pricing structure for ethanol derived from sugarcane juice and B-heavy molasses to ensure that the profitability of the sugar industry is maintained.

The move comes in light of the recent Cabinet decision to raise the ethanol price for ethanol produced from C-heavy molasses by 3%, while leaving other ethanol prices unchanged.

Given the significant sugar content in sugarcane juice and B-heavy molasses, the cost of producing ethanol from these sources is higher compared to C-heavy molasses.

By not adjusting the prices of ethanol from these higher-cost sources, the ISMA is likely concerned that this disparity could lead to financial strain for sugar producers, making it harder to meet the financial obligations to sugarcane farmers.

The government's focus on encouraging ethanol production from C-heavy molasses due to its lower sugar content makes sense from an economic and sustainability perspective, but the sugar industry may feel that this doesn't sufficiently account for the unique challenges associated with producing ethanol from sugarcane juice and syrup.

Do you think this price imbalance could lead to disruptions in the ethanol production process, or might the government look into these concerns in future policy decisions?