The relaxation on feedstock use is a positive development, but what the Indian sugar industry would really look forward is a hike in the regulated price of ethanol.
With the diminishing appeal of exports due to moderating global sugar prices, the Indian sugar milling sector has been lobbying vigorously for more favourable ethanol regulations. The government has responded by removing the cap on sugar diversion for ethanol production. However, this regulatory move, though positive, is not enough. Furthermore, the proposed changes to the
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