Monday Musings: When sugar became fuel

Maharashtra's sugar factories are increasingly producing ethanol, shifting from a by-product to a major revenue stream.

Maharashtra's ethanol production capacity rose from 26 crore litres in 2021-22 to nearly 244 crore litres in 2022-23, currently exceeding 300 crore litres annually.

Government policy, particularly the ethanol blending programme, has driven this transformation.

Sugar mills are diversifying into ethanol, power generation, and compressed biogas, becoming integrated agro-processing units.

Ethanol has reduced sugar mills' vulnerability to sugar price fluctuations, changing the economics of the sector.