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New Delhi
: The government is considering imposing 50% duty on the export of jaggery. The idea is to ensure adequate supply to meet the goal of cleaner and more efficient ethanol-blended petrol, two officials with knowledge of the matter said on condition of anonymity.
India is the world’s largest exporter of jaggery, contributing about 25% to global trade. The country currently does not impose export duty on molasses, a by-product of the process of refining sugarcane into sugar and a key ingredient in the production of ethanol, a biofuel.
However, the government is considering a levy to discourage exports to ensure adequate jaggery in the country in view of the sugarcane shortage following irregular monsoon rains.
“In September, a proposal was made to impose 30% export duty on jaggery to discourage exports of jaggery, but no decision was taken then,” an official said. Due to the growth of ethanol production and trends in international market prices of jaggery, due to limited availability of jaggery, the Food Department has proposed to impose 50% export duty. The decision is likely to be taken in January, the official said.
Queries sent to the Department of Commerce and Food and Public Distribution remained unanswered till press time.
Efforts to boost domestic availability of molasses for ethanol production follow recent restrictions on sugar exports and directions to mills to stop using sugarcane juice for biofuel, which were later reversed. Sugar prices have already hit a 14-year high due to an expected reduction in sugar supply for domestic consumption.
Several sugar industry lobbies, including the National Federation of Cooperative Sugar Factories Limited (NFCSF), West Indian Sugar Mills Association and South Indian Sugar Mills Association, have also demanded hefty export duty, which would boost its domestic availability for ethanol-blended production. Could. petrol.
“The production of C-heavy jaggery is estimated to be about 4.5% of the total sugarcane crushed, yielding about 225 crore liters of ethanol. At present, a large part of C-heavy jaggery is being exported to countries like Netherlands, Philippines and UK for various uses, thereby potentially producing 30 crore liters of ethanol,” NFCSF said in a letter sent to the food ministry. Said in the letter, a copy of which has been seen by Mint.
To achieve the 20% blending target, it is important to use all C-heavy molasses for ethanol production, with the industry body proposing “substantial customs duty or… complete ban”. C-heavy molasses is the final by-product. The sugar refining process, and unlike B type and sugarcane juice, there is no sugar content left.
India is targeting 20% ethanol-blended petrol (known as E20) by 2025-26, up from the current 12% blend.
As of November 30, India’s ethanol production capacity is about 13.8 billion litres; Out of which about 8.75 billion liters is jaggery based and about 5.05 billion liters is grain based. To achieve the target of 20% blending by 2025-26, approximately 10.16 billion liters of ethanol is required. Other sectors will require 3.5 billion liters of alcohol or ethanol. This requires approximately 17 billion liters of ethanol production capacity by 2025-26. Of the 13.5 billion litres, about 7 billion liters – almost half of the total ethanol requirement – will have to come from the sugar sector, and the rest from grain-based feedstock.
Sugar production has declined this year due to weak monsoon, which is likely to impact the use of sugar for ethanol production.
Sugar production in the current crop year that began in October is estimated at 29-30.5 million tonnes (MT), while domestic consumption is at 27.5-28 million tonnes. In the 2022-23 season, India is estimated to produce 32.7-32.8 million tonnes of sugar after the transition to ethanol.
Sugar production in the current crop year that began in October is estimated at 29-30.5 million tonnes (MT), while domestic consumption is at 27.5-28 million tonnes. In the 2022-23 season, India is estimated to produce 32.7-32.8 million tonnes of sugar after the transition to ethanol.
Tarun Sawhney, vice chairperson and managing director of Triveni Engineering & Industries Ltd, the largest integrated sugar company, said, “The government’s supportive ethanol policy, with its emphasis on pricing and diversified feedstocks like rice and maize, led to strong supply fluctuations. and price stability has been ensured.” Manufacturer in India.
