India to Discourage Sugar Mills from Diverting Cane for Ethanol Amid Tighter Sugar Supplies
• India plans to discourage sugar mills from diverting sugar for ethanol production, to ensure adequate sugar supplies domestically
• This would include restricting use of cane juice and high-sucrose molasses for ethanol production
• The move comes amid concerns over lower sugar output due to poor rains in key growing states like Maharashtra and Karnataka
• Sugar mills recently invested heavily to expand ethanol capacity; this move is a setback for that industry
• Industry hopes the shift in focus back to ethanol will be short-term once sugar cane supplies improve