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Maharashtra chief minister hails government decision to remove cap on sugar diversion for ethanol production

Maharashtra Chief Minister Eknath Shinde has hailed the government’s decision to lift restrictions on ethanol production from sugarcane juice and B Heavy Molasses. Shinde noted that this move provides significant relief to sugar factories and distilleries, and he extended his thanks to the central government for this decision. He had persistently engaged with the central government to address the issues arising from last year’s restrictions, which have now been removed for the ethanol supply year (ESY) 2024-25.

In a significant update for sugar mills, the Department of Food and Public Distribution (DFPD) announced on August 29 that sugar mills and distilleries are now allowed to produce ethanol from sugarcane juice/sugar syrup, B-heavy molasses, and C-heavy molasses during the ESY 2024-25, as per agreements and allocations with oil marketing companies (OMCs). These restrictions, which were implemented in December 2023, were initially introduced due to rising sugar prices prior to the Lok Sabha elections.

Additionally, the food department decided to permit distilleries to participate in the Food Corporation of India (FCI) rice auction. Distilleries will be allowed to bid for a maximum of 23 lakh tonnes of rice, subject to specific compliance requirements.

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