Why it may take a while before conversion of sugar into ethanol takes off

Storage issues, financial health of mills are seen as some of the immediate impediments to the process

The government’s recent decision to allow production of ethanol by reconverting sugar is a welcome step, but it remains to be seen how far the move will help address the immediate issue of burgeoning stocks of the sweetener in the 2019-20 season. This is because mills could take quite some time to make the necessary financial investments for conversion.

Also, ethanol can be made directly from sugar only in the off-season, as freshly produced stocks of the compound have very little shelf-life when storage options are limited.

The 2019-20 sugar season starts next month and peak crushing will happen in the first