Centre ban on ethanol from sugarcane juice 'sudden', Amit Shah has assured of solution in two days: Ajit Pawar

Deputy CM Pawar says Centre's ban on ethanol production from sugarcane syrup was sudden. He discussed the issue with CM, Dy CM & Union Home Minister Shah who assured to find a solution in two days.

Maharashtra Deputy Chief Minister Ajit Pawar on December 8 said Union Cooperation Minister Amit Shah has assured to find a way out in the next two days to the issue arising out of the Centre's decision to ban the use of 'sugarcane juice and sugar syrup' for ethanol production.

Also read: India braces for 8% sugar output dip as cane crop suffers: ISMA

Mr. Pawar, who is also the Finance Minister, said in the assembly the Centre's decision was "sudden" and pointed out that many sugar mills in Maharashtra, one of the top producers of the sweetener in the country, have invested heavily in setting up ethanol plants.

The Centre on Dec. 7 banned the use of ‘sugarcane juice and sugar syrup’ for ethanol production in the 2023-24 supply year, which started this month, to maintain adequate sugar availability for domestic consumption and to keep prices under check. However, the government has allowed use of 'B-molasses', a cane by-product, for ethanol production in 2023-24.

Ethanol, a colourless liquid, is blended with fuel as part of the government's initiative to reduce reliance on crude oil imports.

“The ban on ethanol production from sugarcane syrup was sudden. Many sugar mills have invested in ethanol plants with 5% of their capital and 95% funds borrowed from outside,” Mr. Pawar told the legislative assembly after Congress and NCP(Nationalist Congress Party) Legislators raised the issue in the house.

Opposition leaders claimed the Centre's decision would adversely affect sugar mills in Maharashtra that have taken loans to set up units to produce ethanol from sugarcane syrup and molasses.