The government’s decision to lift restrictions on use of sugarcane juice and sugar syrup for ethanol production from the next ethanol supply year (ESY) starting December 1 has resulted in significant rise in stock prices of sugar companies on Friday. Industry associations said that the move would allow higher blending of the biofuel with petrol and would still maintain sugar prices at a reasonable levels. The move by the government is expected to support the increase in ethanol blending with petrol (EBP) closer to the target of 20% for the year and higher than the estimated 14% in ESY2024-25. According to an official note, the food ministry in coordination with the ministry of petroleum and natural gas, would periodically review the diversion of sugar to ethanol production vis-a-vis the production of sugar in the country, so that year-round sugar availability for domestic consumption is maintained. According to the agriculture ministry, sugarcane sowing this season has been completed with a total sown area of 5.76 million hectare (MH), which is marginally higher than normal sown area compared to the previous year. According to ISMA, area under sugarcane this season is 5.6 MH, a 6% decline from previous season (ICE NEW DELHI)

Fonte notizia: Economic Times