Sugar sector concerned over reduction in ethanol sourcing

Sugar sector concerned over reduction in ethanol sourcing


The minimum selling price of sugar has been ₹31 a kg since February 2019 while the current cost of production is estimated at ₹40.24/kg. The government must ensure that at least 50% of total ethanol sourcing comes from the sugar sector, increase the minimum selling price, announce the sugar export policy immediately, and raise the ethanol procurement prices.

The minimal promoting value of sugar has been ₹31 a kg since February 2019 whereas the present price of manufacturing is estimated at ₹40.24/kg. The federal government should make sure that at the very least 50% of complete ethanol sourcing comes from the sugar sector, enhance the minimal promoting value, announce the sugar export coverage instantly, and lift the ethanol procurement costs.
| Picture Credit score: RAJU V

The sugar sector has raised issues over discount of ethanol sourcing from the sugar sector in the course of the 2025-2026 ethanol provide yr.

The Indian Sugar & Bio-Power Producers Affiliation (ISMA) stated the one 289 crore litres of ethanol have been allotted from sugar-based feedstocks, accounting for simply 28% of the overall requirement. The trade has invested near ₹40,000 crore and has the capability to provide 650 crore litre of ethanol a yr. It equipped practically 330 crore litre within the final ethanol provide yr, it stated.

The sector expects nearly 335 lakh tonne of sugar manufacturing between October 1, 2025 and September 30, 2026. Of this, home consumption can be simply 284 lakh tonne. Sugar diversion for ethanol can be 34 lakh tonne and it will result in extra sugar shares.

Whereas the Truthful and Remunerative Worth of sugarcane elevated by 16.5% to ₹355 a quintal since 2022–23, ethanol procurement costs from sugarcane juice and B-heavy molasses have remained unchanged at ₹60.73 and ₹65.61 a litre, respectively. The price of manufacturing of ethanol stands at ₹66.09 per litre from B-heavy molasses and ₹70.70 per litre from sugarcane juice.

The minimal promoting value of sugar is ₹ 31 a kg since February 2019 whereas the present price of manufacturing is estimated at ₹40.24/kg. The federal government ought to guarantee at the very least 50% of complete ethanol sourcing is from the sugar sector, enhance the minimal promoting value, announce instantly the sugar export coverage, and enhance the ethanol procurement costs.

In separate statements, the ISMA and the Grain Ethanol Producers Affiliation known as for enhancing ethanol mixing past E20 and quick monitoring nation-wide adoption of flex gasoline autos.



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