The Central government has issued directives to public sector fuel retailers, temporarily stopping the production of ethanol from sugarcane starting November 1. This measure aims to control sugar prices in the domestic market.
India, the world's second-largest sugar producer, has experienced the effects of climate change on its sugarcane crop. The El Niño phenomenon and the weakest monsoon in a decade have impacted sugarcane yields.
This situation has led to reduced sugar availability in the country, raising concerns about potential price increases. The government has implemented this step to prevent such a scenario.
For the upcoming fuel supply year, public sector refineries including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, Numaligarh Refinery, and Mangalore Refinery had jointly released a tender to procure approximately 11 billion liters of ethanol.
