The Central government has directed public sector fuel retailers to temporarily stop producing ethanol from sugarcane, effective November 1. This measure aims to control sugar prices in the domestic market.
India, the world's second-largest sugar producer, is experiencing the effects of climate change. The sugarcane crop has been impacted by the El Niño phenomenon and the weakest monsoon in a decade.
Officials anticipate that this situation could reduce domestic sugar availability and lead to price increases. The government's action is intended to keep sugar prices stable.
For the upcoming fuel supply year, public sector refineries including Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), Numaligarh Refinery, and Mangalore Refinery had jointly issued a tender to purchase about 11 billion liters of ethanol.
However, the new regulations, which begin on November 1, will affect ethanol production from sugarcane. Officials believe this step will help improve the supply of sugar within the country.
