A day after the Centre banned the use of ‘
sugar cane juice and sugar syrup' for ethanol production in 2023–24, Consumer Affairs Secretary Rohit Kumar Singh said the
curbs are temporary and will be continuously reviewed.
“We constantly watch the production numbers because there were some weather concerns. We're just being extra cautious. However, the review process is constant; four or five secretaries meet every Wednesday. So the review process is continuous. And if there is a data point, or if there is a reason to change the decision, we can always do that,” Singh said in an interview with CNBC-TV18.
The Centre said the decision has been taken to maintain adequate
sugar availability for domestic consumption and to keep prices under check. However, the government has allowed the use of ‘Bmolasses' for ethanol production in 2023-24.
Singh highlighted that the key criterion is the domestic availability of sugar. The government aims to ensure sufficient stocks by the next crushing season, which also aligns with the festival season, Singh added.
India also envisages achieving 20%
ethanol blending by 2025 and reducing reliance on
fossil fuels to address environmental concerns.
Meanwhile, the Indian government implemented a ban on onion
exports from December 8, 2023, to the end of March 2024, aiming to enhance local market availability and stabilise prices.
Singh mentioned that the government closely monitors
onion prices due to seasonality in production, consumption, and affordability. Despite a minimum export price of $800, significant quantities were leaving the country each month.
Singh explained that ensuring year-round onion availability requires strategic policy decisions and adjustments, especially considering that 70% of onions are produced in the Rabi season, available from April onwards.
A recent report highlighted a month-on-month increase in the cost of a typical vegetarian and non-vegetarian meal in November, attributed to soaring onion and tomato prices.
Crisil MI&A Research noted a substantial 58% and 35% on-month rise in onion and tomato prices, respectively, contributing to the overall uptick in meal costs.
For the entire conversation, watch the accompanying video
(Edited by : Ajay Vaishnav)
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