The government has lifted restrictions on production of ethanol from sugarcane juice, b-heavy and c-heavy molasses for the next ethanol supply year that begins in November.

In a communication on Thursday, the Department of Food and Public Distribution said sugar mills and distilleries can produce ethanol, as agreed with oil marketing companies, from sugarcane juice, sugar syrup, b-heavy or c-heavy molasses. The Department and the Ministry of Petroleum and Natural Gas will review the diversion for ethanol periodically to ensure adequate sugar is available for domestic consumption. The department restricted ethanol production from last December to ensure the domestic market had adequate supply of sugar.

Indian Sugar and Bio-Energy Manufacturers Association Director General Deepak Ballani said lifting the restrictions and allowing unrestricted ethanol production from sugarcane juice, B-Heavy Molasses, and C-Heavy Molasses for ethanol year 2024-25 was a significant relief to the industry.