CHENNAI: Impleading the Union ministry of environment and forests as party in the case, the Madras high court had issued notice to state government in a PIL seeking directions to authorities for revising its policy on sugar production and quashing an order, which imposed control on production of ethanol by distilleries.

Consortium of Indian Farmers Association represented by its president R Vridhagiri said the provisions and regulations of the state government placed the sugarcane farmers in the state at a disadvantageous position vis-a-vis the farmers in other states, making the production of sugar unviable and uncompetitive in the market.

Though the distilleries in the state were capable of producing around 27 crore litres of ethanol, the order of commissioner of prohibition and excise to restrict the allocation of molasses to distilleries did not allow them to produce required the quantity of ethanol. The order was passed without considering the demand for molasses . The sugar mills could not meet the demand of ethanol by government owned oil companies, nor could they cater to the needs of union government's ethanol blending programme and requirement of potable alcohol for Indian Manufactured Foreign Liquor (IMFL).