Against 2 mn tonne govt goal, mills earmark 500k tonnes sugar for ethanol

Lack of ethanol-producing capacity a major stumbling block; green fuel makers not satisfied with incentive structure, reluctant to boost production

Sugar mills are a worried lot today, as they will be able to set aside only 500,000 tonnes of sugar for producing ethanol this year, as there isn't enough installed capacity for manufacturing the green fuel. The reason is that companies aren't too keen to invest in ethanol capacity due to the short-term incentive policy of the government. Currently, incentives are available only for a year.

The estimated quantity of sugar diversion for ethanol is just a quarter of the government's target of 2 million tonnes, made at the time of announcing the incentive package a few months ago.

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