Government bans ethanol production from sugarcane juice and sugar syrup, attempts to control prices

Increase in sugar price: After the increase in sugar prices and decrease in sugarcane production in the country, the government took a big decision. The central government has decided to ban the production of ethanol from sugarcane from June. The notification of this decision has also been issued. After this decision, it is believed that it will help control the rising prices of sugar in the local market.

Ban on making ethanol from sugar from June

Issuing the order, the Ministry of Consumer Affairs and Food Supply said that under the Essential Commodities Act, 1955, the Department of Food and Public Distribution monitors the production, sale and availability of sugar in the country, thereby stabilizing the price. But ensures the availability of sugar. can be ensured in the country. Under its mandate, the ministry has directed sugar mills and distilleries not to use sugarcane juice or sugar syrup to make ethanol during 2023-24. This order has come into effect immediately. But the supply of ethanol will continue for orders received from oil marketing companies for supply of ethanol from B-heavy molasses. The Ministry has also informed the Ministry of Petroleum about this decision.

Big drop in sugar prices

As news emerged that the Indian government may ban ethanol production from sugar, international sugar futures on the New York exchange fell to around 8 percent. It is believed that the effect of this decision can be seen in the local market as well. Sugar prices may fall.

Sugar stocks boom

Due to this decision of the government, there has been a huge fall in the stocks of sugar producing companies. Balram China closed down 6.60%, Dalmia India 6.08%, Bajaj India 5.41%, DCM Shriram 5.80%.

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