🌾 NISSTA 10th Annual Convention — Registration Open — March 2025, Lucknow 📢 India achieves E20 Ethanol Blending target ahead of schedule 🏆 NISSTA Exemplary Technologist Award 2025 — Nominations Invited 🔬 NSI Kanpur develops eco-friendly natural clarificant sugar process 🤝 NSI–IIT Kanpur sign MOU for Centre of Excellence in Biofuels 📊 ISMA: India sugar production revised to 32.4 MT for 2025-26 🌱 ICAR-SBI National Hybridisation Programme 2025-26 underway 🌾 NISSTA 10th Annual Convention — Registration Open — March 2025, Lucknow 📢 India achieves E20 Ethanol Blending target ahead of schedule 🏆 NISSTA Exemplary Technologist Award 2025 — Nominations Invited 🔬 NSI Kanpur develops eco-friendly natural clarificant sugar process 🤝 NSI–IIT Kanpur sign MOU for Centre of Excellence in Biofuels 📊 ISMA: India sugar production revised to 32.4 MT for 2025-26 🌱 ICAR-SBI National Hybridisation Programme 2025-26 underway
Est. 2015 · Lucknow, India

Rooted in the Cane Fields of India

Uniting technologists, factories, researchers, and sugarcane farmers across every sugar-producing region of India — from the fields of U.P. and Haryana to Maharashtra, Karnataka, Tamil Nadu, Gujarat, and beyond — building a stronger, smarter, and more sustainable sugar industry.

📄 Read Document
At a Glance
180+
Sugar Factories
Pan
India Presence
40%
National Sugar Share
9+
Years of Service
scroll
Sugarcane field
Cane stalks
Growers
Field rows
Convention
Sugarcane fields India
Sugarcane stalks
2015
Founded
Who We Are

A Voice for
India's Sugar Industry

Founded in 2015 and headquartered in Lucknow, NISSTA represents a foremost professional body of India's sugar sector — connecting technologists, factories, and farming communities across every major sugarcane-producing region of the country, from the northern plains to peninsular India.

We bridge the gap between research, policy, and the field — connecting sugar factories across India with cutting-edge technology, timely knowledge, and a collective voice in national policy corridors from Delhi to state capitals.

🏭
Industry Advocacy
Representing factories and farming families before state and central government policy bodies.
🎓
Knowledge Events
Annual conventions, seminars, webinars, and field workshops throughout the crop season.
🌱
Farmer Welfare
Improving cane productivity, seed access, fair pricing, and timely payment across the belt.
The Human Side

The Farmers Behind
Every Ton of Sugar

NISSTA's work ultimately serves millions of sugarcane growers who sustain the rural economy across every cane-growing region of India.

Farmer UP
Ram Kishan Verma
📍 Muzaffarnagar, U.P.
"NISSTA's varietal seminars doubled my yield in just two seasons."
Farmer Haryana
Suresh Devi & Family
📍 Panipat, Haryana
"With better seeds and support, our cane reaches the mill at peak brix."
Cane field
Iqbal Ahmed
📍 Sitapur, U.P.
"Fair pricing advocacy by NISSTA gives my family certainty every season."
What We Stand For

Our Core Objectives

From research to policy, from the field to the boardroom — NISSTA operates across every dimension of the sugar industry.

01
🔬
Technological Innovation
Promoting modern sugarcane varieties, improved processing, energy recovery, and mechanisation across Indian sugar factories in every producing region.
02
📜
Policy Advocacy
Representing the industry on SAP pricing, FRP implementation, export policy, ethanol blending mandates, and tax rationalisation.
03
🎤
Conventions & Seminars
Hosting annual conventions, state-level seminars, and field days for technologists, researchers, farmers, and policymakers.
04
🌱
Farmer Development
Improving cane productivity through seed health programmes, soil management training, and collaboration with ICAR-IISR.
05
Ethanol & Cogeneration
Building knowledge on ethanol blending, bagasse-based power, press mud biogas, and other by-products to diversify mill revenues.
06
🏅
Professional Recognition
Honouring contributors through NISSTA Awards, conferring Fellowship status, and publishing peer-reviewed technical papers.
Calendar 2025

Upcoming Events

Stay connected with NISSTA's active programme of knowledge-sharing events across India.

Updates

News & Publications

Convention 2025
Annual Convention
NISSTA's 10th Annual Convention: "Sugar Industry at the Crossroads — Challenges & Opportunities 2025"
The landmark 10th convention brings together industry leaders, government officials, research institutions, and technologists from across India to chart a roadmap for sustainable growth. Registration is open.
📅 March 2025 · Lucknow, Uttar Pradesh
Live Intelligence

Industry Intelligence Hub

Curated insights from India's leading sugar research and industry bodies.

ICAR-SBI NSI Kanpur ICAR-IISR ISMA VSI Pune UPSMA UPCSR
ISMA
Sugar Production Revised to 32.4 MT for 2025-26 Season

India's sugar production estimate for 2025-26 has been revised to 32.4 million tonnes. Maharashtra is projected at 10.6 MT, Uttar Pradesh at 9.25 MT, and Karnataka at 4.84 MT — still above the previous year's 29.62 MT. Improved planting signals a stable outlook for 2026-27.

FEB 2026
Production
NSI
NSI Kanpur Develops Eco-Friendly Natural Clarificant Process

Under Director Prof. Seema Paroha, NSI Kanpur successfully trialled a new sugar clarification process using tannin-based coagulant from the Quebracho tree. Commercial trials showed 70% improvement in sugar colour, reduced lime consumption, and elimination of flocculants — a major advance toward greener production.

NOV 2025
Technology
NSI
NSI–IIT Kanpur Sign MOU for Biofuels Centre of Excellence

NSI Kanpur and IIT Kanpur have signed an MOU to establish a joint Centre of Excellence for Biofuels, pioneering research in bioethanol, green hydrogen, and compressed biogas from sugarcane by-products — positioning Kanpur as a national hub for sugar-based bioenergy science.

2025
Collaboration
ICAR-SBI
National Hybridisation Programme 2025-26 Launched at Coimbatore

ICAR-Sugarcane Breeding Institute launched its annual National Hybridisation Programme at its National Hybridization Garden in Coimbatore — the only location in India with climate conducive to profuse sugarcane flowering. Crosses are being made for 24 state sugarcane research stations to develop locally adapted superior-yielding varieties.

2025-26
Breeding
ICAR-SBI
ICAR-SBI and ICAR-CICR Sign MTA for Novel Cry8 Genes

ICAR-SBI Coimbatore signed a Material Transfer Agreement with ICAR-CICR for two novel cry8 genes discovered by ICAR-SBI researchers, to be used in developing transgenic cotton capable of managing the cotton stem weevil — expanding the institute's impact beyond sugarcane into allied crops.

JAN 2025
Biotech
ISMA
ISMA Calls for Urgent Revision of Sugar MSP as Mill Finances Tighten

With ex-mill sugar prices falling below cost of production in Maharashtra and Karnataka, ISMA has urgently called on the government to revise the Minimum Selling Price. Rising cane payment arrears threaten farmer payments and industry viability despite strong seasonal output.

JAN 2026
Policy
NSI
First Woman Director Takes Charge at NSI Kanpur

Dr. Seema Paroha has become the first-ever woman Director of the National Sugar Institute, Kanpur in its 88-year history. Under her leadership, NSI launched a Green Energy Compost Production Unit, expanded smart classroom infrastructure, and initiated the biofuels Centre of Excellence with IIT Kanpur.

2024
Leadership
ICAR-SBI · Coimbatore
Erianthus-Introgressed Varieties Show Borer Resistance

ICAR-SBI identified two Erianthus-introgressed varieties — Co 06022 and Co 06030 — showing resistance to both early shoot borer and internode borer. Trials confirm significantly shorter damage tunnels and lower larval counts compared to standard varieties, offering new options for pest-prone zones across India.

Pest Management
ICAR-SBI · Coimbatore
High-Sucrose Energy Cane Varieties for Dual Use

ICAR-SBI has developed high-energy sugarcane varieties with elevated sucrose content suitable for both commercial sugar extraction and biomass energy production, helping mills diversify revenue through increased bagasse and ethanol feedstock availability under India's bioenergy transition.

Energy Crop
NSI Kanpur
Sweet Sorghum as Alternative Bioethanol Feedstock

NSI Kanpur has signed an MOU with Advanta Seeds to research sweet sorghum and grain sorghum as alternative ethanol feedstocks. This directly supports India's goal of diversifying away from sugarcane-dependent ethanol production and enabling production in drier agricultural zones.

Bioenergy
ICAR-SBI · Regional Centre Karnal
Co 0238 (Karan 4) — Early Maturing Variety for North India

Co 0238, popularly known as Karan 4, has become one of the most widely adopted early maturing sugarcane varieties across North India including U.P. and Haryana. It is high-sucrose (CCS ~11%), tolerates waterlogging and red rot, and demonstrates strong ratoon performance — directly benefiting NISSTA's member farmers.

Variety Release
VSI Pune
Tissue Culture Technology for Disease-Free Planting Material

Vasantdada Sugar Institute, Pune has advanced tissue culture techniques to produce large quantities of disease-free, pathogen-certified sugarcane planting material. VSI-certified seed material has improved field germination and significantly reduced losses from ratoon stunting disease and grassy shoot disease across Indian cane zones.

Seed Technology
ICAR-IISR · Lucknow
Biocontrol Agents for Cane Pest Management

ICAR-IISR Lucknow has developed and validated biocontrol agents including Trichogramma chilonis and Cotesia flavipes for management of sugarcane top borer and internode borer — reducing pesticide dependency and input costs for farmers across India's sugarcane belt while maintaining pest suppression efficacy.

Biocontrol
32.4MT
Projected Sugar Production 2025-26
↑ 9.4% vs 2024-25
20%
Ethanol Blending with Petrol (E20) Achieved
↑ Target met early
518
Sugar Mills Operating in India 2025-26
↑ Stable
5M+
Sugarcane Farmers Nationwide
9.25MT
Uttar Pradesh Sugar Output 2025-26
Largest state producer
₹340/qtl
FRP for 2025-26 Season
↑ from ₹315 in 2024-25
15L T
Sugar Export Quota Allowed 2025-26
88yrs
NSI Kanpur — Established 1936
E20 Achieved — India's Ethanol Blending Milestone
India achieved its ambitious 20% petrol-ethanol blending (E20) target ahead of schedule in August 2025, saving substantial foreign exchange on crude oil imports. The sugar industry is the primary contributor to India's ethanol supply through molasses, B-heavy and cane juice diversion. NSI Kanpur's research on alternative feedstocks will further support diversification.
August 2025
💰
FRP Increased to ₹340/Quintal for 2025-26 Season
The Union Cabinet approved the Fair and Remunerative Price (FRP) for sugarcane at ₹340 per quintal for the 2025-26 season, up from ₹315 in 2024-25. However, several state-advised prices (SAP) in Uttar Pradesh are set higher still at around ₹370/quintal. NISSTA has been actively engaging state authorities on timely SAP payment and arrears clearance for UP farmers.
2025-26 Season
🌿
UPCSR Research on Water-Efficient Sugarcane Varieties
The UP Council of Sugarcane Research, Shahjahanpur, has prioritised development of water-efficient, drought-tolerant cane varieties for eastern UP and Bihar where water availability is a key constraint. New varieties being evaluated include ShSE 2025 series with reduced irrigation requirement, directly relevant to NISSTA member farmers in the Purvanchal region.
Ongoing 2025
🏭
Press Mud Biogas Plant Initiative — Green Energy from Mill Waste
VSI Pune, in collaboration with state sugar departments, is promoting compressed biogas (CBG) plants at sugar mills to convert press mud and distillery spent wash into green energy. National Bioenergy Programme funding is available for mills investing in this infrastructure, creating an additional revenue stream and reducing BOD discharge from distilleries.
2025 onwards
📦
MSP Review Required as Ex-Mill Prices Fall Below Cost
ISMA has made an urgent representation to the government to revise the Minimum Selling Price (MSP) of sugar, which has remained unchanged at ₹3,100/quintal since 2019. Ex-mill prices in Maharashtra and Karnataka have fallen to ₹3,550-3,660/quintal, below effective cost of production, threatening the financial sustainability of mills and their ability to pay farmers on time.
January 2026
🌿 Interactive Knowledge Map

By-Products of the
Cane Sugar Industry

Explore the remarkable chain of products derived from a single sugarcane stalk — from fuel to pharmaceuticals.

👆 Tap any item in the tree to explore
🌾
Sugarcane
Sugar
Sweetening Agent
Bagasse
Utilization as Fuel
Electricity & GassoholCharcoal BriquettesMethane & Producer Gas
Fibrous Products
Pulp & PaperPaper BoardFibre BoardParticle Board
Miscellaneous
FurfuralAlpha CelluloseXylitolPlasticsPoultry Litter & MulchAnimal FeedBagasse ConcreteSoil Amendment
Cane Tops & Leaves
Animal Feed
Flue Gas
Filter Mud
FertiliserAnimal FeedWax & Fats
Furnace Ash
Cane Juice
Protein & Vinegar
Molasses
Direct Utilization
ExportationFertiliserAnimal Feed
Distilling Industry
RumEthyl AlcoholRectified SpiritsAnhydrous AlcoholAlcohol Derivatives
Other Fermentation Industries
Vinegar & Acetic AcidAcetone-ButanolCitric AcidLactic AcidGlycerolYeast
Miscellaneous
Aconitic AcidMonosodium GlutamateDextranL-LysineXanthan GumItaconic Acid
🌿

Select any item from the tree to explore its uses, science, and industrial importance.

Primary Product
Sugar
Sugar extracted from sugarcane is one of the world's most traded food commodities. Raw cane sugar undergoes crystallization and refining to produce white granular sugar used worldwide.
Brazil and India account for nearly half of global sugarcane output.
Sugarcane contributes about 80% of the world's sugar supply.
Global sugarcane production exceeds 1.8 billion tonnes annually.
80%World sugar from cane
1.8B TGlobal per year
Food Industry
Sweetening Agent
Refined cane sugar serves as the universal sweetening agent in thousands of food and beverage products. It also acts as a preservative, texture modifier, and fermentation substrate.
Used in confectionery, beverages, baked goods, jams and pharmaceuticals.
Sugar provides energy at 4 calories per gram.
Beyond sweetness, sugar enhances color, moisture retention, and shelf-life.
Major By-Product
Bagasse
Bagasse is the fibrous pulp remaining after juice is extracted from sugarcane stalks. For every 10 tonnes of cane crushed, roughly 3 tonnes of wet bagasse are produced.
Composed of ~45–50% cellulose, 25–30% hemicellulose, and 25% lignin.
Burning bagasse can generate all the electricity a mill needs.
Biodegradable and certified compostable within 60–90 days.
3TPer 10T cane crushed
50%Cellulose content
Bioenergy
Bagasse as Fuel
Burning bagasse generates heat and electricity for sugar mills and surplus power fed back into the national grid. It is considered near carbon-neutral since CO₂ released is less than what was absorbed during cane growth.
Thermal efficiency of bagasse burning reaches about 58%.
Second-generation bioethanol, biomethane, and biohydrogen can be produced from bagasse.
India generates over 5,000 MW of cogeneration power from bagasse annually.
Renewable Energy
Electricity & Gassohol
Bagasse is burned in boilers to produce steam that drives turbines generating electricity. India's E20 target now achieved, with sugar industry as primary ethanol supplier.
Brazil pioneered gassohol with its Proálcool program.
India's E20 target now achieved, sugar industry as primary ethanol supplier.
Bagasse electricity reduces dependence on fossil fuels in sugar-producing regions.
Solid Fuel
Charcoal Briquettes
Bagasse can be compressed and carbonized into charcoal briquettes, providing a clean-burning solid fuel particularly valuable in regions where wood fuel is scarce.
Bagasse briquettes burn cleaner than traditional wood charcoal.
Used widely in Africa and Asia as a substitute for wood charcoal.
Helps reduce pressure on forest resources in tropical countries.
Biogas
Methane & Producer Gas
Anaerobic digestion of bagasse produces biogas (primarily methane). Producer gas is generated through gasification and can power internal combustion engines.
Bagasse gasification produces syngas (H₂ + CO) for clean power generation.
Biomethane from bagasse can be injected into natural gas grids.
Indian mills increasingly adopting CBG plants under national bioenergy programme.
Paper Industry
Fibrous Products
Long cellulose fibers in bagasse are ideal for manufacturing paper and board products. Bagasse-based paper replaces wood pulp, reducing deforestation.
Reduces wood usage by over 52% compared to virgin wood paper.
Extensively used in India, China, Latin America for paper production.
Bagasse paper can replace Styrofoam and plastic packaging in food service.
52%Wood usage reduction
Paper Industry
Pulp & Paper
Bagasse pulp is used to make writing paper, newspaper, tissue paper, and packaging. India has several mills using bagasse pulp for paper production.
Requires significantly less water and chemicals to process than wood pulp.
Bagasse paper is fully recyclable and compostable.
India's bagasse paper industry grows ~8% annually.
Packaging
Paper Board
Bagasse paperboard is used for food containers, packaging, and industrial uses. Fully biodegradable — ideal for eco-friendly food service packaging.
Used for take-away containers, plates, cups, and clamshells.
Microwave and freezer safe when manufactured with natural coatings.
Growing global demand as countries ban single-use plastics.
Construction
Fibre Board
MDF and hardboard can be manufactured from bagasse fibers. Used in furniture, cabinetry, flooring, and wall panels as sustainable alternatives to wood-based boards.
Bagasse MDF has similar mechanical properties to wood-based MDF.
Formaldehyde-free variants are now available.
Manufactured in Egypt, Iran, Thailand and increasingly India.
Construction
Particle Board
Bagasse particles are combined with binders under heat and pressure to create particle boards used in low-cost construction, furniture, and interior fittings.
Used extensively in affordable housing construction in India and Latin America.
Provides a market for the residual fine fibers not suitable for paper-making.
ICAR is researching low-formaldehyde binder systems for safer indoor use.
Specialty Chemical
Furfural
Furfural is a versatile industrial chemical produced from the hemicellulose in bagasse through acid hydrolysis. It is a solvent and precursor to furan resins.
Used as a selective solvent in petroleum refining.
Furfuryl alcohol is used in foundry resins for metal casting.
China produces over 70% of global furfural; bagasse offers India an opportunity.
Industrial
Alpha Cellulose
High-purity alpha cellulose extracted from bagasse is used in specialty papers, filtration membranes, pharmaceutical excipients, and as a raw material for cellulose derivatives.
Purity exceeding 92% achievable from bagasse pulp processing.
Used in cellulose acetate, carboxymethyl cellulose, and microcrystalline cellulose production.
Growing pharmaceutical demand for plant-derived cellulose excipients.
Sugar Substitute
Xylitol
Xylitol is a sugar alcohol produced from the xylose in bagasse hemicellulose. 40% fewer calories than sugar, safe for diabetics, and actively prevents tooth decay.
Used in sugar-free gums, candies, dental products, and pharmaceuticals.
Does not cause blood glucose spikes — approved for diabetics worldwide.
Proven to reduce dental caries by up to 85% when used regularly.
Bioplastics
Bioplastics
Cellulose from bagasse can be converted to bioplastics including cellulose acetate, cellulose films, and polylactic acid (PLA). These replace petroleum-derived plastics.
Cellulose acetate is used in eyeglass frames, film, and cigarette filters.
PLA from sugarcane is the basis of compostable packaging and 3D printing filament.
Medical-grade PLA is used in dissolving surgical sutures and bone fixation screws.
Agriculture
Poultry Litter & Mulch
Dry bagasse is used as bedding material in poultry and animal farms, absorbing moisture and reducing disease. As mulch, it retains soil moisture and suppresses weeds.
Reduces ammonia emissions and bacterial contamination in poultry houses.
As mulch, reduces soil water evaporation by up to 40% in dry seasons.
After use as litter, it becomes an enriched organic fertiliser.
Livestock
Animal Feed (Bagasse)
Treated bagasse, after acid hydrolysis or steam explosion, becomes a digestible livestock feed. Bagasse pith can be fermented with urea to produce protein-enriched feed.
Alkali treatment increases bagasse digestibility from 20% to 50%+.
Fermented bagasse + urea + minerals forms a complete low-cost ruminant feed.
ICAR-IISR has protocols for on-farm bagasse feed preparation for small farmers.
Construction
Bagasse Concrete & Bricks
Bagasse ash (from burning) is rich in silica and can partially replace cement in concrete, reducing CO₂ emissions. Bagasse fiber reinforced concrete shows improved toughness.
Bagasse ash can replace 15–20% of cement in concrete.
Reduces cement CO₂ footprint and repurposes millions of tonnes of mill ash.
Research at IIT Kanpur and UPCSR advancing bagasse-based construction materials.
Agriculture
Soil Amendment
Bagasse mixed with organic matter improves soil structure, water retention, and microbial activity. Used in organic farming as a slow-release carbon source.
Increases soil organic carbon and water-holding capacity in sandy soils.
Encourages beneficial microbial populations that improve nutrient availability.
VSI Pune recommends bagasse compost as a key input for sustainable cane cultivation.
Livestock
Cane Tops & Leaves
The upper green portion of harvested sugarcane (tops and leaves) is nutritious fresh fodder for cattle, buffalo, and sheep. ~10–12 tonnes of green tops per hectare.
Contains 8–10% crude protein and is highly palatable to ruminants.
Can be ensiled for later use during lean fodder seasons.
Reduces feed costs for cane farmers who also maintain dairy animals.
Livestock
Animal Feed from Tops
Cane tops and leaves provide an excellent source of roughage and moderate nutrition for livestock during and after the cane harvest season.
Mixed with urea-molasses mineral blocks to improve protein content.
Silage prepared from cane tops can be stored for 3–6 months.
ICAR-IISR has published guidelines for optimal cane tops feeding ratios.
Emissions
Flue Gas
Flue gas from bagasse combustion is being harnessed for CO₂ capture and algal cultivation. Carbon capture from sugar mill flue gas is an emerging area of research.
CO₂ from flue gas can be captured for carbonated beverages and greenhouses.
Algae cultivated on flue gas CO₂ can produce biofuels and proteins.
NSI Kanpur is researching economically viable CO₂ capture from mill boilers.
Mill By-Product
Filter Mud (Press Mud)
Press mud is the residue from the juice clarification process. Rich in organic matter, waxes, phosphorus, and micronutrients, with multiple valuable uses.
Approximately 3–4% of cane crushed is generated as press mud.
Contains 1.5–2.5% nitrogen, 2–3.5% P₂O₅, 0.5–1% K₂O and micronutrients.
NSI Kanpur's Green Energy Compost Unit converts press mud into premium biofertiliser.
Agriculture
Fertiliser from Press Mud
Composted press mud is an excellent organic fertiliser. Its application improves soil health, water retention, and microbial activity while reducing chemical fertiliser need.
Application at 5–10 tonnes/hectare improves cane yield by 8–15% in trials at UPCSR.
Reduces dependence on chemical fertilisers, lowering input costs for farmers.
Several UP mills now market branded press mud compost to cane farmers.
Livestock
Animal Feed from Press Mud
Fresh press mud can be incorporated into cattle feed as a source of energy and minerals. Contains residual sucrose (~2%) and is highly digestible when blended appropriately.
Rich in phosphorus — helps in bone development and reproductive health of livestock.
Mixed with dry roughage in ratios of 1:3 to 1:4.
ICAR-IISR recommends fresh press mud use only during milling season due to rapid spoilage.
Specialty Chemical
Wax & Fats
Press mud contains 5–10% crude wax (octacosanol, triacontanol). Extracted for use in cosmetics, polishes, pharmaceuticals, and as a functional food supplement.
Octacosanol and policosanol have cholesterol-lowering properties.
Used as a natural substitute for carnauba and beeswax in cosmetics.
Policosanol supplements are widely marketed for cardiovascular health.
Construction & Agriculture
Furnace Ash (Bagasse Ash)
The ash remaining after bagasse combustion is rich in silica (60–70%) and potassium. Uses include pozzolanic cement additive, soil amendment, and brick-making.
Replacing 15–20% of Portland cement with bagasse ash reduces CO₂ emissions.
Used as a potassium-rich soil amendment to correct K-deficiency in sugarcane fields.
Indian mills generate millions of tonnes of ash annually — sustainable utilisation is a priority.
Primary Extract
Cane Juice
Fresh cane juice contains 14–22% dissolved solids — predominantly sucrose with glucose, fructose, amino acids, vitamins, and minerals.
Direct consumption as a health beverage — rich in electrolytes and antioxidants.
NSI Kanpur is researching cane juice-based vinegar and protein concentrates.
Cane juice polyphenols have demonstrated anti-inflammatory properties in research.
Food Products
Protein & Vinegar
Cane juice can be processed to extract plant proteins for food use, and fermented to produce cane vinegar — a premium culinary product. Both are emerging high-value streams.
Cane juice vinegar is produced commercially in Japan (Kibizu) and China.
Protein concentrates from cane juice are being explored as functional food ingredients.
NSI Kanpur research shows cane juice vinegar has higher acetic acid content than standard vinegar.
Major By-Product
Molasses
Molasses is the thick, dark syrup remaining after sugar crystals are extracted. It contains 45–55% fermentable sugars — one of the most versatile industrial fermentation substrates on earth.
India produces approximately 12–14 million tonnes of molasses annually.
Primary raw material for India's ethanol production for E20 blending programme.
Molasses-based distilleries provide a second revenue stream for sugar mills.
12-14MTIndia annual production
Trade
Direct Utilization of Molasses
A portion of molasses is used directly without fermentation — exported, used in animal nutrition, or applied as a soil conditioner.
India exports molasses to Southeast Asia and Middle East for animal feed use.
Direct molasses prices are typically ₹8,000–12,000/tonne depending on season.
Used as a binder in feed pellets to improve palatability for livestock.
Trade
Molasses Exportation
India exports molasses primarily to South Korea, Philippines, and other Asian markets where it is used in animal feed, fermentation, and food industries.
India is among the world's top molasses exporters when domestic ethanol demand allows.
South Korean breweries are major buyers of Indian molasses.
ISMA monitors molasses availability and recommends export/domestic allocation policy.
Agriculture
Molasses as Fertiliser
Diluted molasses is applied to soil as a carbon source to stimulate beneficial microorganisms. Also used in foliar sprays to enhance plant stress tolerance.
Stimulates beneficial fungi and bacteria including Trichoderma and mycorrhizae.
Improves soil organic carbon when applied in combination with compost.
Used by organic farmers as a natural biostimulant and chelating agent.
Livestock
Molasses Animal Feed
Molasses is a highly palatable, energy-dense feed ingredient for ruminants, horses, poultry, and swine. Mixed with urea, minerals, and roughage, it forms a balanced supplement.
Urea-Molasses-Mineral Blocks (UMMB) are a low-cost protein supplement for dairy cattle.
Used in complete feed pellets — improves palatability and reduces feed wastage by 15–20%.
ICAR-IISR Lucknow has developed and distributes UMMB formulations to farmer groups.
Distillery
Distilling Industry
The distilling industry converts molasses into a wide range of alcoholic beverages and industrial alcohol through fermentation and distillation.
India has over 320 molasses-based distilleries, many attached to sugar mills.
Distillery revenue can account for 30–50% of total mill earnings in UP.
B-heavy molasses and cane juice are preferred for ethanol production for E20 blending.
Beverage
Rum
Rum is produced by fermenting and distilling molasses or fresh cane juice. One of the world's most consumed spirits with premium and commodity market segments.
Global rum market exceeds $14 billion annually, growing at 4.5% per year.
Rhum agricole (from cane juice) carries AOC certification in Martinique.
India is among the world's top rum producers (Old Monk, McDowell's No.1).
Industrial Chemical
Ethyl Alcohol (Ethanol)
Ethanol produced from molasses fermentation is India's most important industrial alcohol. Used as a fuel additive (E20), in pharmaceuticals, as a chemical feedstock.
India achieved 20% petrol-ethanol blending (E20) ahead of schedule in 2025.
Sugar industry contributes ~65% of India's ethanol production for blending programme.
Ethanol from B-heavy molasses earns mills ₹57–66/litre from OMCs under current policy.
20%Blending achieved 2025
Industrial
Rectified Spirits
Rectified spirit (~95% strength) produced by distilling fermented molasses wash. The base for potable spirits, pharmaceuticals, and industrial solvents.
Used to manufacture hand sanitizers, tinctures, and pharmaceutical solutions.
Base for IMFL production in over 200 Indian distilleries.
Price regulated by state excise departments in India.
Biofuel
Anhydrous Alcohol (Fuel Ethanol)
Anhydrous ethanol (99.5%+ purity) is the grade used for petrol blending under India's National Biofuels Programme. Molecular sieves remove the final water.
Must meet BIS specification IS 15464 for use in petrol blending in India.
E20 blend requires 5.3 billion litres of anhydrous ethanol annually across India.
NSI Kanpur trains distillery operators in molecular sieve dehydration technology.
Chemicals
Alcohol Derivatives
Ethanol is a platform chemical converted into dozens of valuable chemicals including acetaldehyde, acetic acid, ethylene, ethyl acetate, and diethyl ether.
Ethylene from bio-ethanol is used to make bio-polyethylene (green plastic).
Ethyl acetate is a major solvent in paints and adhesives.
Bio-based ethanol derivatives can replace petrochemicals in many applications.
Industrial Biotechnology
Fermentation Industries
Molasses is the ideal substrate for a vast range of industrial fermentations producing organic acids, amino acids, gums, and specialty biochemicals.
Industrial fermenters using molasses operate at hundreds of thousands of litres.
Molasses fermentations supply food additives, pharmaceuticals and biofuels globally.
Synthetic biology enabling molasses fermentation for novel high-value molecules.
Food & Chemical
Vinegar & Acetic Acid
Acetic acid is produced by bacterial oxidation of ethanol from molasses. Industrial acetic acid is a major chemical feedstock for vinyl acetate and pharmaceutical manufacture.
Global acetic acid production exceeds 16 million tonnes annually.
Cane vinegar is valued as a health food product in Asian markets.
Vinyl acetate monomer is used in paints, adhesives, and PVA.
Solvents
Acetone-Butanol
The ABE fermentation of molasses produces industrial solvents. Butanol is emerging as a next-generation biofuel superior to ethanol.
Butanol has energy density closer to gasoline than ethanol and is less corrosive.
Acetone is widely used as a solvent and in acrylic glass (PMMA) production.
ABE fermentation from molasses was historically significant during World War II.
Food Additive
Citric Acid
Citric acid is produced by fermenting molasses with Aspergillus niger. The world's most widely used food acidulant and preservative.
Global citric acid production exceeds 2 million tonnes per year.
Used as an antioxidant, pH regulator, and flavoring in thousands of food products.
India imports most citric acid from China — domestic production from molasses is an opportunity.
2M TGlobal production/year
Biopolymer
Lactic Acid
Lactic acid fermented from molasses is used in food preservation, cosmetics, and as a monomer for polylactic acid (PLA) bioplastic.
PLA bioplastic from lactic acid is used in compostable packaging and medical implants.
Food-grade lactic acid is used in fermented products and as a pH control agent.
Medical-grade PLA is used in dissolving surgical sutures.
Cosmetics & Pharma
Glycerol (Glycerin)
Glycerol is a by-product of ethanol fermentation from molasses. Non-toxic and biodegradable, used in pharmaceuticals, cosmetics, and food.
Used in over 1,500 end products including pharmaceuticals, cosmetics, and food.
Acts as a humectant in skin creams and lotions.
Pharmaceutical-grade glycerol is used as a solvent and carrier for oral medications.
Biotechnology
Yeast (Baker's & Nutritional)
Molasses is the primary feedstock for cultivating Saccharomyces cerevisiae (baker's yeast). The yeast biomass is harvested, dried, and sold as baker's yeast, nutritional yeast, and yeast extract.
Molasses provides the carbon and nitrogen sources yeast needs for rapid growth.
Nutritional yeast is rich in B vitamins, zinc, and protein.
Yeast extract (Marmite, Vegemite) is produced by autolysis of yeast grown on molasses.
Organic Acid
Aconitic Acid
Aconitic acid is naturally present in sugarcane juice and molasses. Extracted and used as a precursor to itaconic acid and as a specialty chemical in plasticizers.
Molasses contains 2–6% aconitic acid depending on variety and growing conditions.
Converts to itaconic acid upon heating, used in superabsorbent polymers.
Has potential pharmaceutical applications as an anti-inflammatory compound.
Food Additive
Monosodium Glutamate (MSG)
MSG is produced by fermenting molasses with Corynebacterium glutamicum. The world's most widely used flavor enhancer (umami). Annual production exceeds 3.5 million tonnes.
MSG is approved as safe (GRAS) by the US FDA.
Produces the "umami" taste — the fifth basic taste.
Molasses from sugarcane is a leading global feedstock for MSG fermentation.
3.5M TProduced annually
Pharmaceutical
Dextran
Dextran is a polysaccharide produced by Leuconostoc bacteria fermenting sucrose in molasses. Used as a blood plasma expander in medical emergencies.
Clinical-grade dextran is used intravenously to treat hypovolemic shock.
Sephadex® (cross-linked dextran) is a standard laboratory material for protein purification.
Food-grade dextran serves as a thickener, stabilizer, and humectant.
Amino Acid
L-Lysine
L-Lysine is an essential amino acid produced by fermenting molasses with Corynebacterium glutamicum. The world's second most consumed amino acid in animal feed.
Added to poultry, swine, and fish feed to improve protein quality.
In humans, lysine is essential for calcium absorption and immune function.
Annual global production of L-Lysine exceeds 2.4 million tonnes.
2.4M TGlobal production/year
Food Ingredient
Xanthan Gum
Xanthan gum is produced by fermenting molasses with Xanthomonas campestris. A powerful thickening and stabilizing agent used in salad dressings, gluten-free baking, oil drilling, and cosmetics.
A tiny amount (0.1–0.3%) provides significant viscosity to liquid formulations.
Essential in gluten-free baking as it mimics the elasticity that gluten provides.
In oil drilling, xanthan gum thickens drilling fluids to carry rock cuttings.
Biopolymer
Itaconic Acid
Itaconic acid is a bio-based platform chemical produced by fermenting molasses with Aspergillus terreus. Used in superabsorbent polymers, latex, adhesives, and biodegradable plastics.
One of the top 12 platform bio-based chemicals identified by the US Department of Energy.
Used in superabsorbent polymers that can absorb hundreds of times their weight in water.
A renewable substitute for petroleum-derived acrylic acid in polymer production.
Specialty Chemicals
Miscellaneous Molasses Products
Advanced fermentation and chemical processing of molasses yields a remarkable range of specialty products from platform chemicals to pharmaceutical-grade compounds.
Products span food additives, polymers, and pharmaceuticals.
Synthetic biology is enabling novel fermentation routes for high-value molecules.
Molasses fermentation is one of the most economically significant biotechnology sectors globally.
Specialty Products
Miscellaneous Bagasse Products
Beyond energy and fiber, bagasse is the feedstock for a remarkable array of specialty chemicals and agricultural products — demonstrating the extraordinary versatility of this sugarcane residue.
Bagasse is recognized as an ideal substrate for microbial production of enzymes.
The biorefinery concept aims to convert all bagasse components into maximum value.
Research ongoing into bagasse for pharmaceutical production and advanced biomaterials.
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Insights, research, field stories, and industry perspectives from every sugar-producing region of India.

Sugarcane field
Policy & Industry
Ethanol Blending at 20%: What It Really Means for India's Sugar Mills
India's E20 programme is reshaping the economics of sugar manufacturing. For mills across the country — from Uttar Pradesh to Maharashtra and Karnataka — the shift to ethanol in B-heavy and C-molasses means major revenue diversification but also operational challenges. We break down the opportunity.
Author
Dr. Arvind Sharma
Feb 15, 2025 · 8 min read
Read Full Article →
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