It is reported by Reuters.

Concerns over sugar production due to below normal monsoon rains between June and September had led the world's second-largest sugar producer to cap the amount that could be diverted for ethanol in the current season to end-September at 1.7 million tonnes.

But as the supply situation has improved as a result of unseasonal rainfall in Maharashtra and Karnataka, the government has agreed to the diversion of an additional 800,000 tonnes of sugar for ethanol production, said the senior industry official.

«Many sugar mills produced B-heavy molasses in anticipation of ethanol production. However, these stocks remain unused after the government capped the diversion of sugar for ethanol. Mills can now use stored B-heavy molasses for ethanol production», — said the official, who spoke on condition of anonymity.