ISMA demands immediate increase in ethanol price from the government

05-Nov-2024 03:37 PM

New Delhi. Apex industry body- Indian Sugar and Bio Energy Manufacturers Association (ISMA) has expressed apprehension of further deepening of crisis in the sugar industry and warned that if immediate increase in ethanol price is not announced, many sugar mills may have to go through a tough struggle.

In view of the ongoing fluctuations in sugar prices, production of ethanol has become an important source of income (revenue) for millers and distillers.

According to the President of ISMA, the government needs to intervene immediately in this matter. The stability of the sugar industry should be ensured and the ethanol blending program should be supported and helped.

There is a delay in starting the sugarcane crushing season in some other states of the country including Maharashtra and the price of sugar is softening. Millers expect better revenue from ethanol and this helps them to compensate for the financial loss caused by the fall in sugar prices.

The crushing of sugarcane is going to start from mid-November in leading sugar producing states like Maharashtra and Karnataka, while crushing may be delayed further due to the assembly elections in Maharashtra.

The average price of sugar was Rs 38 per kg last year, which has now come down to Rs 35-36 per kg. Millers have a huge stock of sugar. The price of sugarcane has increased by 6 percent. This should be kept in mind.