How booze may not let India cut its dependence on foreign oil

India, the world’s fastest growing guzzler of oil, is seeking to reduce its addiction to imports by using more sugar cane ethanol as fuel — but a mandate to supply molasses to the liquor industry in the top producing state is threatening to derail those plans.

In Uttar Pradesh, there is a local government order requiring sugar mills to provide fixed amounts of molasses, a product of the refining process, to alcoholic drinks manufacturers at rates well below market levels, which means less is available to turn into ethanol for powering cars.