First e-Cabinet okays norms for making ethanol from cane juice

EXCISE DEPT READY WITH POLICY TO ALLOW MAKING ETHANOL FROM GRAIN, AS WELL

LUCKNOW: The state cabinet on Monday approved guidelines for production of ethanol from sugarcane juice and syrup, apart from giving nod to some other proposals at its meeting presided over by chief minister Yogi Adityanath. Monday’s was the first e-cabinet meeting.

“Cabinet has approved guidelines for production of ethanol from cane juice and syrup in the distilleries of the state,” excise commissioner P Guru Prasad confirmed.

“The decision will aid in reducing excess sugar stocks, increasing liquidity with the sugar mills for settling cane farmers’ dues and making higher ethanol available for Ethanol Blended Petrol (EBP) Programme,” he added.

Another official dealing with the issue revealed that the excise department was ready with a policy allowing making ethanol from grain, as well. “The proposal seeking nod for the proposed policy and guidelines for making ethanol from grain, including wheat, will also be put before the cabinet for its approval within next two week or so,” the official said.

Surplus sugar production has depressed sugar prices, thereby impacting sugar industry’s capacity to pay sugar cane farmers. The ex-distillery price of ethanol derived from cane juice is Rs 62.85 per litre while that from C- heavy molasses is Rs 45.69 per litre for the ethanol supply year beginning December 2020. Higher remunerative price for ethanol produced from cane juice, it is claimed, will help in reduction of cane farmer’ arrears.

Under the policy guidelines approved by the Cabinet, sugarcane juice will mean primary juice, secondary juice, mixed juice and clear juice as obtained by sulphitation or defecation process whereas sugarcane syrup will mean concentrated juice.

Also, sugar mills with captive distilleries within the premises will be allowed to produce ethanol from cane juice and syrup. Standalone distilleries will not be allowed to produce ethanol from cane juice and syrup.

Guidelines further say that ethanol produced from cane juice will be used only for Ethanol Blended Programme (EBP) and as no sugar or molasses is produced in the process, the income from ethanol derived from cane juice and syrup will be tagged for payment of sugarcane dues to farmers.

The guidelines have it that all the instructions regarding cane allotment and cane payment issued from time to time shall be binding on these units.

The state government has already permitted ethanol production from B- heavy molasses. Since then, more than 40 distilleries in the state have been producing ethanol form B-heavy molasses, resulting in a significant increase in ethanol production in the state. UP is said to be the highest producer of ethanol in the country.

“The cabinet decision will empower the sugar mills to choose between production of sugar or production of ethanol from cane juice, based on viability of market price of sugar, further improving the income of sugar mills and thereby better cane payment to farmers,” Guru Prasad pointed out.

Among other proposals cleared by the Cabinet included transfer of 1,165 sqm nazool land in Ayodhya to the department of tourism for construction of Queen Heo memorial park and making land available to UPSRTC free of cost for construction of a bus station in Rampur.