Sugar mills in Maharashtra focus on ethanol production

Pune: High demand for ethanol from the oil industry and attractive returns are some of the major reasons sugar mills in the state shift their business towards ethanol production, reports Hindustan Times.

State sugar commissioner Shekhar Gaikwad said, “There is more demand from oil industries for ethanol blending but existing mills are not able to provide the required supply. The sugar mills are now focussing on diverting more cane to ethanol production than sugar. We are following the Brazil model of diverting their production to ethanol or sugar as per the market demand.”

“Considering the last three years’ data we can conclude that there is more demand than supply. Sugar mills were able to meet 89.81% of the total demand in 2020-21, 85% in 2021-22 and 36.27% in 2022-23,” he said.
He said the total turnover in the ethanol sector in the state this year was Rs 12,000 crore.


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