On 07 December, 2023, the Central government banned the use of sugarcane juice and sugar syrup for ethanol production in the 2023-24 supply year (December-November), which started this month. With this move, the government aims to maintain adequate sugar availability for domestic consumption.

However, the government has allowed the use of ‘B-molasses’ for ethanol production in 2023-24. Further, the Ministry of Food Processing Industries (MOFPI) issued a letter to all sugar mills and distillers restricting the use of sugarcane juice. The directive was issued as per clauses 4 and 5 of the Sugar (Control) Order 1966.

The letter also directs that the supply of ethanol from existing offers received by oil marketing companies (OMCs) from B-Heavy molasses will continue. The decision by the Ministry comes after the estimated fall in sugar production in the 2023-24 marketing year (October-September).

India exported 61 lakh tonne of sugar during the 2022-23 marketing year, as compared to 112 lakh tonne in the previous year. The government has not yet allowed exports for this marketing year.