With sugar production expected to be down in the 2023-24 season, the central government has directed all sugar mills not to use sugarcane juice or syrup for making ethanol this year and has allowed the production of ethanol from B-heavy molasses as it is.
The 2023-24 sugar season started in October, while the ethanol supply year (ESY) started in November.
The direction came as negative news for the sugar companies, with their stocks trading lower on Thursday. Investors felt that ethanol realisations would get impacted as the major feedstock moved to produce more sugar.
