India plans to discourage ethanol production to prioritize sugar

In India, Reuters reported that the government of India directed sugar mills not to use cane juice or syrup to produce ethanol, as local authorities try  to increase sugar supplies by curtailing ethanol production.

According to the Reuters report, the government was planning to discourage the diversion of sugar for ethanol production as part of efforts to ensure sufficient supplies of the sweetener in the domestic market.

Fuel retailers, under current contracts, are permitted to keep their procurement of ethanol derived from B-heavy molasses, a byproduct with higher sucrose levels, the government said. It would also allow the diversion of 1.04 million metric tons of B-heavy molasses for ethanol production under existing contracts, government officials said.

An industry official had said that the Indian government would allow mills to produce ethanol only from C-heavy molasses, a cane by-product that has hardly any sugar content left in it.

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