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Government to Halt Sugarcane Juice and Molasses Use for Ethanol in 2026-27

The government is planning to halt the diversion of sugarcane juice and B-heavy molasses for ethanol production in the 2026-27 ethanol supply year starting from November, aiming to address concerns related to their usage and availability.

Government to Halt Sugarcane Juice and Molasses Use for Ethanol in 2026-27
AI Generated | Minutebrief Team

In Brief

  1. Government to stop diversion of sugarcane juice and B-heavy molasses for ethanol production.
  2. Move aims to ensure adequate availability of these products for traditional uses.
  3. The decision impacts ethanol supplies and sugar industry operations.
  4. Policy change reflects balancing ethanol demand and sectoral needs.

The government has proposed to halt the diversion of sugarcane juice and B-heavy molasses for ethanol production. This step is intended to maintain sufficient supply of these products for their conventional uses within the sugar industry and related sectors. Officials indicated that the move aims to balance the increasing demand for ethanol with the need to support traditional applications that rely on sugarcane-based products.

Currently, sugarcane juice and B-heavy molasses are being diverted in significant quantities towards ethanol manufacturing as part of the government's biofuel promotion policy. However, concerns have risen regarding the impact of this diversion on sugar production and related industries.

The new policy direction reflects efforts to regulate raw material allocation more effectively, ensuring that ethanol production does not compromise the availability and pricing of sugar and molasses in the market. Industry stakeholders are expected to adjust operations in response to this government decision.

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