In a major boost to the cash-strapped sugar industry, the Union government allowed the export of alcohol-based hand sanitiser, a commodity in high demand globally.
The export will unlock an additional revenue stream for the beleaguered industry.
On May 6, the Centre had banned the export of alcohol-based sanitiser to maintain domestic market supply, although non-alcohol based sanitisers were exempted from the ban.
Official sources said in Lucknow that the Director General of Foreign Trade (DGFT), Ministry of Commerce, ordered on June 1 for the export of alcohol-based hand sanitiser with immediate effect in any other form/packaging other than containers with dispensers.
Hit by the slump in demand due to lockdown and subdued realisations, the sugar mills have huge farmers’ arrears in the current sugar season with arrears amounting to Rs 15,000 crore and growing.
Recently, a few major private sugar millers had petitioned the Centre for allowing the export of alcohol-based sanitiser, citing robust capacities and abundant production to serve the domestic market.
The hand sanitiser manufacturing capacity in UP is to the tune of over five lakh litres per day, while current production is only about 2.8 lakh litres. Currently, 87 units in the state are producing hand sanitiser, of which 37 are standalone plants, 27 sugar mills, 12 distilleries and 11 independent units. The mills, which set up sanitiser facilities, include all private sugar companies, including Balrampur Chini, Birla, Dalmia, Dhampur, Uttam etc.
UP Sugar Mills Association (UPSMA) Secretary Deepak Guptara welcomed the Centre’s order, saying that it would certainly have a positive impact on the domestic sugar industry.
“The demand for hand sanitiser in Indian subcontinent and neighbouring markets like Sri Lanka etc, is high. Besides, the product made by mills is 80 per cent pure although World Health Organisation (WHO) norms mandate for 65 per cent purity,” he said.
Some mills are producing bulk quantities of sanitiser and supplying it to other firms for bottling and marketing, a few others have signed contracts to supply ethanol/ethyl alcohol/extra neutral alcohol (ENA) to external plants.
While, sanitisers are generally manufactured with isopropyl alcohol (IPA), they have been found equally effective with ethanol/ethyl alcohol/ENA, a sugar by-products.
Since, sugar mills are focused on production of hand sanitiser rather than marketing it, they have been able to maintain high purity. Mills have set up substantial production capacity and export is the way forward in addition to domestic supplies.
Earlier, Principal Secretary (Sugar Industry and Sugarcane Development) Sanjay Bhoosreddy had said that sanitiser producers were getting trade enquiries from foreign buyers, but the state was focusing on ensuring adequate supply in domestic market before exports could be considered.
