India allows the conversion of sugar into ethanol to reduce biofuel problems after a drought.

As part of the biofuel utilization program, India has allowed sugar mills to convert up to 1.7 million tons of sugar into ethanol. This decision was made to alleviate issues with biofuel production following droughts in key sugar-producing states such as Maharashtra and Karnataka.

On Friday, the government set a limit of 1.7 million tons for the current marketing year, which began on October 1, in order to redirect sugarcane juice and B-heavy molasses towards ethanol production. Explaining the move, an important official, speaking on condition of anonymity, stated that quotas would soon be allocated between sugar mills and distilleries.

The official mentioned that even with the diversion of sucrose for ethanol production, sugar stocks would be sufficient to meet domestic demand in the country.

This government decision will support the industry, which has invested significant amounts of money in the last five years to expand ethanol production capacities, another high-ranking representative of the sector reported.

Uneven rainfall in key sugarcane-producing regions has raised concerns about this year's crop.