India to redirect up to 1.7 million tons of sugar to ethanol

India has allowed sugar mills to process up to 1.7 million tons of sugar into ethanol as part of its biofuel program. The decision was made to reduce problems with biofuel production after the drought in leading sugar states such as Maharashtra and Karnataka, Reuters reports.

On Friday, the government set a limit of 1.7 million tons for the marketing year that began on October 1 to divert sugarcane juice and second product molasses to ethanol production. Speaking on condition of anonymity, the official said that the quota will soon be distributed among sugar mills and distilleries.

According to the official, even with the redirection of sucrose to ethanol production, sugar reserves will remain sufficient to meet the country’s domestic needs.

The government’s decision will support the industry, which has invested billions of dollars over the past five years to increase ethanol production capacity, another senior industry official said.

Uneven rainfall in the main sugar cane producing areas has raised concerns about this year’s harvest.

Tags: sugar, India, ethanol