Pune: National Federation of Cooperative Sugar Factories (NFCSF) chairperson Harshvardhan Patil has written to the Centre, urging it to reconsider its decision to restrict the use of sugar cane juice and sugar syrup for ethanol production. Patil warned that the move would have a severe adverse impact on the country’s sugar industry.A recent tender issued by state-run oil marketing companies (OMCs) sought bids for around 11 billion litres of ethanol for upcoming supply year, spanning from Nov 2026 to Oct 2027. Crucially, the tender does not invite bids for ethanol produced from sugar cane juice, sugar syrup, or B-heavy molasses.“Though the Centre has not officially banned use of sugar for ethanol, the specific tender conditions make it clear that sugar cane juice and sugar syrup will not be utilised for ethanol production. This policy change will deal a massive blow to the sugar industry,” Patil said.Patil, who is also a senior NCP (SP) member, highlighted that numerous sugar mills had made substantial capital investments in distillery infrastructure following the Centre’s initial aggressive push for ethanol production. “In Maharashtra alone, nearly Rs40,000 crore has been invested in ethanol production, distilleries, and capacity expansion over the last few years. If the Centre enforces this policy, these massive investments will go to waste, and sugar factories will suffer catastrophic losses,” Patil added.He further noted that sugar factories would face severe challenges in servicing the debt accumulated to fund these expansions. “When the Centre began promoting ethanol production, factories took out significant bank loans to set up plants. The repayment of these debts is directly tied to revenue generated from ethanol production. If mills are blocked from manufacturing it, loan repayment will become an uphill challenge,” Patil said.Prominent farmers’ activist Raju Shetti also criticised the development, stating that the decision would cripple the cash flow of cooperative mills. “The revenue earned from ethanol was being used by sugar factories to clear outstanding dues to sugar cane farmers. Now that this income stream is being choked, farmers will suffer alongside the mills. The Centre must urgently reconsider its stance,” Shetti said.
