National Federation of Cooperative Sugar Factories chairperson Harshvardhan Pati
“In Maharashtra alone, nearly Rs40,000 crore has been invested in ethanol production, distilleries, and capacity expansion over the last few years.
This policy change will deal a massive blow to the sugar industry,” Patil said. If mills are blocked from manufacturing it, loan repayment will become an uphill challenge,” Patil said. “Though the Centre has not officially banned use of sugar for ethanol, the specific tender conditions make it clear that sugar cane juice and sugar syrup will not be utilised for ethanol production. Patil, who is also a senior NCP (SP) member, highlighted that numerous sugar mills had made substantial capital investments in distillery infrastructure following the Centre’s initial aggressive push for ethanol production. He further noted that sugar factories would face severe challenges in servicing the debt accumulated to fund these expansions. “When the Centre began promoting ethanol production, factories took out significant bank loans to set up plants. The repayment of these debts is directly tied to revenue generated from ethanol production. You Can Also Check: Gold Rate in Pune | Silver Rate in Pune | Bank Holidays in Pune | Public Holidays in Pune | Petrol Price in Pune | Diesel Price in Pune | CNG Price in Pune | LPG Price in Pune