In order to encourage sugar mills to divert excess sugar cane and sugar to ethanol and to achieve targets of blending ethanol with petrol, the Centre announced doubling the incentive on sugar sacrificed for producing ethanol from October 2021.

Sugar mills that will divert sugar to ethanol would be getting the entire quantity of sugar sacrificed on producing ethanol in their monthly release quota, Ministry of Consumer Affairs, Food & Public Distribution said.

To maintain the demand supply position of sugar in the country and to stabilise ex-mill prices of sugar and ensure sufficient availability of sugar for domestic consumption, mill wise monthly release quota of sugar for domestic sale by sugar mills is allocated by Department of Food and Public Distribution every month on the basis of stocks held by them, export performance and diversion of sugar to ethanol.

“With a view to encourage sugar mills to divert excess sugar cane and sugar to ethanol and to achieve targets of blending ethanol with petrol in line with Ethanol Blended with Petrol program, incentive on sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar has been doubled from October 2021, onwards in their monthly release quota.

“Now, those sugar mills which will be diverting sugar to ethanol would be getting the entire quantity of sugar sacrificed on producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar in their monthly release quota,” an official statement said.