Govt announces incentive for mills diverting sugar for ethanol production

Announcing an incentive to encourage sugar mills to divert the commodity towards ethanol making, the government on Friday said it will allocate a quantity of sugar that is sacrificed for ethanol production for monthly domestic sale along with the regular quota from this month onwards.

The government has been fixing mill-wise monthly sugar quota since June 2018 in order to maintain the demand-supply position of sugar in the country, stabilise ex-mill prices of the sweetener and ensure sufficient availability for domestic consumption.

The sugar quota is fixed on the basis of stocks held by them, export performance and diversion of sugar to ethanol.