Now Reading: Govt may curb cane use for ethanol to cool sugar prices
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Govt may curb cane use for ethanol to cool sugar prices
India is considering restricting sugarcane use for ethanol from October to boost sugar output and tame record-high prices, two government and two industry sources said. Reduced rainfall in Maharashtra and Karnataka has…
The Story in Brief
India is considering restricting sugarcane use for ethanol from October to boost sugar output and tame record-high prices, two government and two industry sources said. Reduced rainfall in Maharashtra and Karnataka has raised concerns about next year's output. A decision is expected by end of next month.
Mills diverted about 3 million tonnes of sugar to ethanol this year. Curbing that next season could add similar volumes to supplies. The government may ask mills to stop ethanol from sugarcane juice and use only C-heavy molasses, replacing cane with corn and rice for the blending programme.
The Indian Opinion
This is a sensible course correction, but watch for the usual lobbying from the sugar industry to water it down. The narrative that India must keep ethanol blending on track at any cost ignores that festival-season prices are already hurting households. The real test is whether the government finalises the November allocation before the season starts, or lets delays push prices higher again.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
