Govt may allow sugar companies to sell ethanol produced before ban on cane juice, B-heavy molasses

The decision may help oil marketing companies to add more quantity into blending

Sugar mills and distilleries which have invested heavily in the last three years to increase ethanol capacity, may get a fillip with the decision

The Indian government may soon allow the sale of ethanol already produced from sugarcane juice and B-heavy molasses (BHM) before it imposed a ban in December last year with immediate effect. As the quantity of ethanol lying with mills is equivalent to 8 lakh tonnes (lt) of sugar, the total quantity of sugar diversion for the biofuel production may reach 25 lt, including 17 lt already allowed for this sugar season (October-September)