Government allows 1.7 million tonnes sugar diversion for ethanol production
In a move to bolster ambitious biofuel initiative and mitigate potential disruptions, the government
has given the nod to sugar mills to redirect up to 1.7 million metric tonnes of sugar for ethanol
production, news agency Reuters reported citing government and industry sources on Friday.
Government had previously imposed restrictions, barring sugar mills from utilising cane juice for
ethanol production. This directive was rooted in concerns over production challenges exacerbated
by drought conditions in key sugar-producing states- Maharashtra and Karnataka.
However, the government decided to allow the diversion of cane juice and B-heavy molasses for
ethanol production, setting a cap at 1.7 million metric tons for the ongoing 2023-24 marketing year
that commenced on October 1, as confirmed by officials.
An unnamed senior government official revealed that a designated quota would soon be allocated
for sugar mills and distilleries in accordance with official regulations. Despite the diversion of
sucrose for ethanol production, the official affirmed that the available sugar supply remains
sufficient to meet local demand.
Source Link :- https://www.republicworld.com/economy/policy/government-allows-17-million-tonnes-sugar-diversion-for-ethanol-production/
