The government on Friday decided to give more flexibility to sugar mills by allowing them to use both sugarcane juice and B-heavy molasses to produce ethyl alcohol provided the diversion of sugar for the purpose should not exceed 17 lakh tonnes for the current supply year 2023-24, that stretches across November to October.
The decision eases the ban that the government had imposed last week on the diversion of sugarcane juice and sugar syrup for making ethanol (ethyl alcohol), which the industry had opposed due to the massive hit on its profitability.
The government, on the other hand, was worried that sugar prices would shoot up due to a reduction in output with too much sugarcane being diverted to make alcohol.
A senior official confirmed that the decision was taken by a committee of ministers after the representation made by the sugar industry.