Ethanol becomes a core business for Maharashtra’s sugar mills as capacity jumps to 244 crore litres in 2022–23

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Maharashtra's sugar mills are structurally shifting cane and molasses toward ethanol, supported by large capex and rising output, improving mill cash flows and payment capacity for farmers. The industry's push for higher ethanol procurement prices highlights cost pressure from higher cane FRP. For commodity markets, this increases the risk of tighter sugar availability over time, but the news is primarily regional and policy-dependent.
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⚠️ AI سے تیار کردہ تجزیاتی سمجھ خبروں کے مواد پر مبنی ہے اور صرف معلوماتی مقاصد کے لیے فراہم کی گئی ہے۔ یہ سرمایہ کاری کا مشورہ نہیں ہے اور نہ ہی BingX کے خیالات کی نمائندگی کرتی ہے۔ سرمایہ کاری میں رسک شامل ہے۔ براہ کرم ذمہ داری سے ٹریڈ کریں۔
Sugar mills in India’s Maharashtra have rapidly shifted into ethanol, with production capacity rising from 26 lakh litres in 2021–22 to 244 crore litres in 2022–23 and output reaching 104.83 crore litres in the 2024–25 Ethanol Supply Year. The industry has invested more than ₹35,000 crore in ethanol facilities and is seeking higher procurement prices to match an increase in sugarcane Fair and Remunerative Price (FRP). The shift has improved mills’ financial resilience, but it also diverts cane and molasses into fuel, creating a structural constraint on raw sugar supply.