Centre allows use of sugarcane juice, B-molasses to make ethanol

Geography Energy

16-Dec-23

Context: The government's recent decision to ban the use of sugarcane juice and sugar syrup for ethanol production comes a week after the industry requested a reversal of the decision.

Key Highlights

Policy Reversal: The government has reversed its decision to ban the use of sugarcane juice for ethanol production, allowing its utilization along with B-heavy molasses. However, sugar diversion for ethanol is capped at 17 lakh tonnes.
Temporary Capping: The cap on sugar diversion will be applicable for the 2023-24 supply year, ending in October next year. The decision follows a week of industry protests against the initial ban on cane juice and sugar syrup for ethanol.
Flexibility for Sugar Mills: Sugar mills are now granted flexibility in using both sugarcane juice and B-heavy molasses within the 17 lakh tonnes cap for ethanol production in the ongoing supply year.
Modalities Under Consideration: Officials are working on determining the proportion of cane juice and molasses for ethanol production. Some ethanol has already been produced using cane juice in the current supply year.
Industry Representation: The reversal comes after representations from the sugar industry to review the earlier ban, emphasizing its impact on ethanol production and financial strain on mills.
Concerns and Challenges: The government's decision is prompted by concerns over low cane production, exacerbated by recent drought conditions in Maharashtra and Karnataka.
Ethanol Blending Target: Despite challenges, officials express confidence in achieving the 15% ethanol blending target with petrol in the 2023-24 supply year.
Review of Sugarcane Juice Ban: Acknowledging industry distress, officials assure a review of the ban on sugarcane juice, emphasizing its temporary nature and the need for national interest.
Industry's Financial Strain: The Indian Sugar Mills Association urges the government to revise ethanol prices from B-heavy and C-heavy molasses to support millers financially.
Price Revision Demands: Industry demands include raising ethanol prices from B-heavy molasses to Rs 64 per litre and from C-heavy molasses to Rs 58-59 per litre.

Ethanol

Ethanol, also known as ethyl alcohol, is a biofuel produced from various sources such as sugarcane, corn, rice, wheat, and biomass.
The production process involves the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.
Ethanol is 99.9% pure alcohol that can be blended with petrol to create a cleaner fuel alternative.
Apart from being a fuel additive, ethanol production yields valuable byproducts like Distillers’ Dried Grain with Solubles, and Potash from Incineration Boiler Ash that find applications across various industries.

Ethanol production in India

Ethanol production in India was mainly based on ‘C-heavy’ molasses, with a sugar content of 40-45%, yielding 220–225 liters of ethanol per tonne.
India explored direct sugarcane juice for ethanol production, increasing yield and efficiency.
The country diversified its feedstocks by including rice, damaged grains, maize, jowar, bajra, and millets.
Ethanol yields from grains are higher compared to molasses, with rice producing 450-480 liters and other grains 380-460 liters per tonne.
Sugar mills diversified to use rice, damaged grains, maize, and millet as feedstocks.
Leading sugar companies installed distilleries that can operate on multiple feedstocks throughout the year.

Types of Molasses

A Molasses (First Molasses): An intermediate by-product from initial sugar crystal extraction, containing 80-85% dry matter (DM). Should be inverted to prevent crystallization if stored.
B Molasses (Second Molasses): Similar DM content as A molasses but with less sugar and no spontaneous crystallization.
C Molasses (Final Molasses, Blackstrap Molasses, Treacle): The end by-product of sugar processing, containing significant amounts of sucrose (about 32 to 42%). It does not crystallize and is used as a commercial feed ingredient in liquid or dried form.