Govt Pushes for Higher Ethanol Output from Sugar, but Prices and Production Will Decide
18-Aug-2025 09:38 AM
Govt Pushes for Higher Ethanol Output from Sugar, but Prices and Production Will Decide
★ The Indian Sugar Mills Association (ISMA) has projected diversion of up to 5 million tonnes of sugar for ethanol in the 2025-26 season. However, industry players say the actual diversion will depend on sugar availability and upward revision in ethanol prices, which have largely remained unchanged for the past two years.
★ Industry bodies have been demanding higher ethanol prices. Currently, ethanol made from C-heavy molasses is priced at ₹57.97/litre, from B-heavy molasses at ₹60.73/litre, and from sugarcane juice at ₹65.61/litre.
★ In 2024-25, sugar diversion for ethanol fell short at 3.4 million tonnes. For the ongoing season, oil companies have placed orders for 11.26 bln litres of ethanol, of which 69% will come from grains and only 31% from sugar-based feedstocks.