(a) whether the Union Government has received requests from various State Governments and
the sugar industry to allow the production of Ethanol with a view to enhancing the viability of sugar mills in the country;
(b) if so, the details thereof including steps taken to provide incentives to the sugar
industry;
(c) whether the Government proposes to amend the Sugarcane Control Order; and
(d) if so, the details thereof and the time by which a decision in this regard is likely
to be taken?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF
CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION(PROF. K.V. THOMAS)
(a): The sugar factories are already permitted to produce ethanol. The production of
ethanol from molasses improves the viability of the sugar factories.
(b): A concessional loan at the rate of 4% per annum is being provided from Sugar
Development Fund to sugar factories for setting up projects for production of ethanol from
molasses. In order to provide an assured market for ethanol, the Government has decided for
5% mandatory blending of ethanol with petrol from October, 2007 which was slated to increase
to 10% all over the country except North-Eastern states, Jammu & Kashmir and Island territories.
The Government has also fixed a uniform procurement price of Rs.21.50 per litre ex-factory.
(c)&(d): The Sugarcane (Control) Order, 1966 has already been amended to allow sugar
factories to produce ethanol directly from sugarcane juice.