Higher price of B- molasses compared to C-molasses

A Brief on sugar production:

 Extracted sugar juice mixed with water is weighed and sent to the boiling house for further
processing.
 This juice is heated and then treated with milk of lime and sulphur dioxide. The treated juice is
then further heated and sent to clarifiers for continuous settling.
 The clear juice is evaporated to a syrup stage, bleached by sulphur dioxide and then sent to
vacuum pans for further concentration and sugar grain formation. Crystals are developed to a
desired size and the crystallized mass is then dropped in the crystallizers to exhaust the mother
liquor of its sugar as much as possible.
 This is then centrifuged for separating the crystals from molasses. The molasses is re-boiled for
further crystallization
 The result of this first boiling is called first syrup ('A' Molasses), and it has the highest sugar
content. Second molasses ('B' Molasses) is created from a second boiling and sugar extraction,
and has a slightly bitter taste. The third boiling of the sugar syrup yields dark, viscous blackstrap
molasses ('C' Molasses)
 Thus, the original syrup is de-sugarised progressively (normally three times) till finally, a viscous
liquid is obtained from which sugar can no longer be recovered economically. This liquid, which
is called final molasses(C molasses), is sent to the distillery for making alcohol.

 Earlier ethanol was allowed to be made only of C-heavy molasses, a cane by-product that has
little sugar content left in it. Whereas, the B-heavy molasses and sugarcane juice have some
sucrose content left in them for sugar production. The sugarcane control order of 1966 has been
amended in this regard and the same has been notified by the Union Food Ministry.
 Government has notified the National Biofuel Policy according to which 10% blending of ethanol
into petrol has been targeted through various feed stocks other than the conventional route of
Final Molasses.
 Consistent surplus of sugar production is depressing sugar price.
 Consequently, sugarcane farmer's dues have increased due to lower capability of sugar industry
to pay the farmers.
 With a view to limit sugar production in the country, Government has allowed diversion of B
heavy molasses / sugarcane juice for production of ethanol.
 As compared to ethanol derived from C- heavy molasses route, diversion of B heavy molasses
reduces the sugar by 15-20 % and increases ethanol availability by about 90-100%. On the other
hand, diversion of sugarcane juice reduces sugar by 100% and increases ethanol availability by
about 580-600%.
 This explains the comparatively higher price commanded by B molasses compared to C molasses

Price (Rs/L) for ethanol from: Sugarcane: 59.13; B molasses: 52.43; C molasses: 43.46