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The government is considering allowing sugar mills to manufacture ethanol using their excess B-heavy molasses as feedstock, amid comfortable sugar supply and stable prices in the market, according to sources. Currently, sugar mills are holding an excess stock of more than 8 lakh tonnes of B-heavy molasses -- a byproduct of the sweetener -- produced before the ban on its use on December 7, last year. A week later, the government reversed the ban and allowed the use of both cane juice and B-heavy molasses but it permitted within the overall cap of a sugar diversion of 17 lakh tonnes for ethanol production for the 2023-24 supply year (November-October). "The industry has stored B-heavy molasses for making ethanol after the crushing gets over. But the government banned it suddenly and imposed a cap. Mills now have excess stock of B-heavy molasses," the sources told PTI. Now that the crushing is coming to an end, the sugar industry has been demanding the government to permit the use of