SUGAR MILLS ADVOCATE FOR AN INCREASE IN ETHANOL PRICES

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ISMA's Ethanol Symphony – Harmonizing Progress for Farmers and Industry Alike

In a bid to navigate the complexities arising from the recent ban on sugarcane juice for ethanol production, the Indian Sugar Mills Association (ISMA) stands at the forefront, urging the government to consider compensatory measures. The proposed increase in ethanol prices from B and C heavy molasses emerges as a crucial step to offset losses incurred by mills, ensuring a seamless transition without jeopardizing the interests of farmers and the ethanol blending program. As ISMA advocates for harmony, let’s delve into the proposed measures and their potential impact on the sugar industry.

The Ethanol Conundrum: A Pause with Ramifications

The government’s decision to halt the use of sugarcane juice and sugar syrup for ethanol production in the upcoming ethanol supply year (2023-24) stems from concerns about a potential decline in domestic sugarcane production. While the move aligns with the need to safeguard resources, it poses challenges for sugar mills, with potential ramifications for both their operations and the livelihoods of farmers.

ISMA highlights a looming threat – a drastic reduction in the crushing capacity of sugar mills, leading to delays in the crushing season. This delay not only impacts the mills but crucially affects farmers who face extended payment timelines and encounter challenges in clearing sugarcane fields promptly.

ISMA’s Blueprint for a Balanced Transition

Acknowledging the government’s intent to strike a balance, ISMA proposes a set of measures aimed at mitigating disruptions and supporting the farming community. The cornerstone of these measures is a compensatory increase in the pricing of ethanol derived from B and C heavy molasses. This strategic move aims to ensure adequate cash flow for sugar mills, enabling them to meet their financial commitments to farmers.

The government has currently fixed the ethanol price at Rs 49.41 per litre from the C heavy molasses route and Rs 60.73 per litre from the B heavy molasses route. ISMA’s proposal seeks not just financial compensation but also an avenue to sustain the ethanol blending program.

Preserving Continuity: The ISMA Ethanol Roadmap

To maintain the momentum of the ethanol blending program, ISMA puts forward a practical suggestion – allowing the conversion of remaining contracted or cancelled juice quantities to B-heavy molasses. This strategic pivot ensures that oil marketing companies receive additional ethanol without significantly impacting sugar production. It reflects a forward-thinking approach, preserving the delicate equilibrium between ethanol supply and sugar industry dynamics.

Time Sensitivity: ISMA’s Plea for a Grace Period

Understanding the urgency of the situation, ISMA requests a grace period for distilleries to continue processing existing juice stock to ethanol until December 10. The ethanol produced during this period would then be supplied to oil marketing companies until December 20. This timeframe allows for a smooth transition, minimizing abrupt disruptions and providing the necessary breathing space for stakeholders to adapt to the new regulations.

A Delicate Balancing Act: Farmers, Mills, and Industry Dynamics

ISMA’s plea isn’t just a call for financial compensation; it’s a nuanced approach to balance the intricate web of interests. By securing cash flow for sugar mills, preserving the ethanol blending program, and offering a grace period for adaptation, ISMA aims to shield both farmers and the sugar industry from the adverse effects of the recent regulatory changes.

Looking Ahead: Collaborative Solutions for Ethanol Sustainability

As the sugar industry faces these regulatory shifts, ISMA’s proposals present a roadmap for collaborative solutions. The delicate balancing act ensures that the transition doesn’t come at the cost of livelihoods or industry sustainability. The compensatory increase in ethanol prices emerges as a lifeline, a strategic move to navigate the sweet complexities of change.
In the evolving symphony of India’s sugar industry, ISMA takes center stage, orchestrating a harmonious transition amidst regulatory shifts. With an anthem of compensatory measures, continuity strategies, and a plea for adaptability, ISMA navigates the sweet challenges, ensuring that progress remains in tune with the livelihoods of farmers and the heartbeat of the sugar industry.

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