From sugar to biofuel: How ethanol transformed Maharashtra’s sugar economy

Ethanol has become a major revenue source for Maharashtra’s sugar mills, cushioning volatile sugar prices and enabling timely farmer payments.

Praj Industries in Pune developed indigenous ethanol production technology, laying the foundation for India’s biofuel industry.

Maharashtra’s ethanol production capacity surged from 26 lakh litres in 2021-22 to 244 crore litres in 2022-23, driven by investment from cooperative and private mills.

Mills have invested over ₹35,000 crore in distilleries and ethanol infrastructure over the past four to five years.

State Sugar commissioner Sanjay Kolte said ethanol production has significantly improved the financial viability of sugar factories.