The production of sugar and ethanol in Uttar Pradesh is likely to go down marginally this season as the Union government has banned the diversion of sugar and cane juice for the production of ethanol.
During the last cane crushing season which ended in May 2023, sugar production was over 104 lakh metric tons.
The Union government on December 7 had directed all sugar mills and distilleries not to use sugarcane juice for ethanol production. The government, in a notification, directed all sugar mills and distilleries not to use sugar cane juice/sugar syrup for ethanol in ESY (Ethanol Supply Year) 2023-24 with immediate effect.
Supply of ethanol for existing offers received by oil marketing companies from B-Heavy molasses will continue. The ESY runs from December to October.
According to experts, the step has been taken to ensure there is an adequate supply of sugar in the local market. Deficient rain in the major sugar-producing states of Karnataka, Maharashtra and Uttar Pradesh is likely to impact the production of sugar therefore the government is taking measures to ensure sufficient availability of sugar in the country.
Secretary general of UP Sugar Mills Association Deepak Gupta said, “During the current 2023-24 season the production of both sugar and ethanol is estimated to lower than the last season as the government has restrained the mills from diverting sugar for the production of ethanol.”
As much as 20 lakh metric tons of sugar was diverted to ethanol in Uttar Pradesh while in Maharashtra, it was 15.70 lakh tons.
UP is the country’s biggest ethanol producer. A sugar by-product, ethanol is used for a variety of purposes, ranging from mixing in fossil fuel to its usage in pharmaceutical and chemical industries. The state has about 85 operational ethanol distilleries, and their annual capacity is estimated at 2.45 billion litres.
During the last season, the distilleries in UP had supplied over two billion litres of ethanol. Ethanol produced in the state is exported to oil marketing company depots, both within and outside the state, for the Centre has mandated 10 per cent blending in fuel.
The total sugar produced by Uttar Pradesh in crushing season 2022-2023 was 107.29 lakh tons (which includes 3.05 lakh tons of khandsari (physically extracted sugar from liquid jaggery), as compared to 105.30 lakh tons by Maharashtra.
The area under cane cultivation in Uttar Pradesh was 28.53 lakh hectare (maximum in India) as compared to 14.87 lakh hectare in Maharashtra. Uttar Pradesh had surpassed Maharashtra in sugar production in the last season even as 118 sugar mills operated in UP during the period compared to 210 mills that were operational in Maharashtra. The sugarcane crushing season runs from October to June.
The current ethanol production capacity in India is 1,364 crore litres and it is sufficient to meet the fuel blending targets. The roadmap for ethanol blending in India 2020-25, is estimated to be 1,016 crore litres to achieve 20 per cent blending targets in ESY 2025-26. In line with the roadmap, oil marketing companies have achieved 10 per cent ethanol blending during 2021-22 and 12 per cent during 2022-23.
