New Delhi. In order to bring down the prices of petrol, the government has been trying to blend ethanol for a long time. Meanwhile, the government has decided to take a big step to increase the production of ethanol. The government on Friday announced incentives to sugar mills to promote the use of sugarcane for making ethanol. Under this, sugar mills transferring sugarcane for ethanol production from this month will be allotted sugar quota equal to the quantity of sugarcane transferred for monthly domestic sale in addition to their regular quota.
In order to maintain the demand-supply position of sugar in the country, stabilize the pre-mill prices of sugar and ensure adequate availability for domestic consumption, the government is fixing mill-wise monthly sugar quotas from June 2018. The quota of sugar is decided on the basis of stock with them, export performance and conversion of sugar into ethanol.
The incentive on sugar used for production of ethanol from “B-heavy molasses”/sugarcane juice/sugar syrup/sugar has been doubled from October 2021 in their monthly release quota, the Union Food Ministry said in a statement. .”
This has been done to encourage sugar mills to use surplus cane/sugar for ethanol production and to achieve the target of blending ethanol with petrol in line with the ‘Petrol with Ethanol Blending Programme’.