(Priyanka Parashar/ Mint)
(Priyanka Parashar/ Mint)

Govt okays 3300 crore incentive to help sugar mills boost ethanol capacity

  • The diversion of sugarcane for ethanol production will help cut sugar output
  • This will also help improve the financial health of sugar mills that have been saddled with losses

New Delhi: The Cabinet on Thursday approved incentives worth 3,300 crore ($471.21 million) to help sugar mills boost ethanol production capacity, finance minister Arun Jaitley said.

The diversion of sugarcane for ethanol production will help cut sugar output, which in turn, will improve the financial health of sugar mills that have been saddled with losses.

Indian sugar mills produced 21.9 million tonnes of the sweetener between 1 October and 15 February, nearly 8% more than a year earlier, as a few mills started crushing earlier than usual, a producers’ body said recently.

Mills in the western state of Maharashtra produced 8.3 million tonnes sugar during the period, up 11% from a year ago, the Indian Sugar Mills Association (ISMA) had said in a statement.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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