Coimbatore: The Indian Sugar Mills Association (ISMA) proposed on Friday a compensatory increase in pricing for ethanol derived from B and C heavy molasses, responding to the Government’s directive restricting the use of sugarcane juice and syrup for ethanol production.

While acknowledging the government’s intent to balance the needs of consumers, ISMA has proposed specific measures to ensure a smooth transition, minimize potential disruptions and support the farmer.

To maintain continuity of ethanol supply for the Ethanol Blending Program, ISMA suggested allowing the conversion of the remaining contracted/cancelled juice quantity to B-heavy molasses. Also to avoid abrupt disruptions and ensure a smooth transition, the sugar body requested permission for distilleries to continue processing existing juice stock to ethanol until December 10th, with the produced ethanol to be supplied to the OMCS until December 20th.

On December 7, the government banned use of sugarcane juice and sugar syrup for ethanol production in the 2023-24 ethanol supply year (November-October) due to likely fall in domestic sugarcane production. But permitted ethanol production by using B and C heavy molasses.