Key Points
The central government on Thursday banned diversion of sugar for ethanol manufacturing with immediate effect in ethanol supply year 2022-23..
However, the supply of ethanol from existing offers received by the Oil Marketing Companies (OMCs) from B Heavy molasses will continue, it said.. Sources told ET that this matter was discussed in a meeting of the Group of Ministers held on Monday evening, which was attended by Minister of Commerce and Industry Piyush Goyal, Minister of Agriculture Narendra Singh Tomar and Home Minister Amit Shah...
"The ministers were concerned about the expected fall in the sugar production in Maharashtra and Karnataka as it could make sugar more expensive just before the general elections..
One of the senior ministers asked the cabinet secretary to write to the Oil Marketing Companies to stop buying ethanol made from sugarcane juice and from B-heavy molasses," said the source mentioned earlier...
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