Direct ethanol manufacture not under sugar decontrol order

The law ministry has rejected the proposal of food ministry for direct manufacture of ethanol from sugarcane on a standalone basis and not only as a by-product of sugar by amending the Sugar Control Order under Section 3 of Essential Commodities Act.

Backed by the view of attorney general, law ministry has stated that the proposal could be considered under separate provisions and not under the sugar control order which is governed by the Essential Commodities Act and regulates the manufacturing, marketing, and distribution of sugar.

“Ethanol is not an essential commodity and even if it is to be manufactured as a controlled commodity, it cannot be accommodated under the Sugar Control Order. When ethanol is not an essential commodity, it cannot be included directly under the order, which is a subordinate legislation under the Essential Commodities Act. The ambit of a subordinate legislation cannot be widened by amendment when the parent legislation does not provide for the same. Thus, ethanol production directly from sugarcane is out of the ambit of the sugar control order,” said sources close to the development.

It has already communicated its views to the ministry of food and consumer affairs, sources said.

The law ministry has also cited Article 47 of the Constitution, which pertains to the duty of the states to raise the standard of living and nutrition level of its subjects. “Provisions of Article 47 have to be considered before amending the Essential Commodities Act to include ethanol even as a controlled commodity,” sources said.

Earlier, the Prime Minister’s Economic Advisory Council (PMEAC) had ruled against the direct manufacture of ethanol from sugarcane, citing concerns over food security, which is the primary responsibility of the Essential Commodities Act, sources said.

The proposal was sent by the food ministry for legal opinion at the initiative of the government of Bihar , which has tied up several projects for the direct manufacture of ethanol from sugarcane. “ Bihar is laying emphasis on the development of agro-based industries for its own economic development after much of the mineral resources have come under the domain of the newly formed state of Jharkhand,” said an official source.

At present, the direct manufacture of ethanol is not allowed in India but only as a by-product during sugar production. The prospect of ethanol in India is perceived to increase manifold after the ministry of petroleum and natural gas makes it mandatory for the states to blend ethanol with petrol to reduce environment pollution, said source.

India currently has 122 plants manufacturing ethanol as a by-product, having a capacity of around 1.2 billion litres per annum. Of the 120 units, 71 are in Maharashtra, 12 in Gujarat, six in Andhra Pradesh, five in Tamil Nadu, 14 in Uttar Pradesh and 10 in other states.