The state government is trying to increase its tax on ethanol production as the state is the largest ethanol producer in the country, reports Daily Pioneer.

Apart from blending with petrol, ethanol is used for various industrial purposes. Increasing ethanol blending with fuel helps in increasing farmers’ income and facilitates sugar mills to clear their dues. This also helps the center to lower expenditure on Petroleum imports.

The state government is attracting investment in the ethanol sector to boost farmers’ income.