{
  "id": 7771888,
  "title": "Ethanol Policy Curbs To Strain Sugar Distilleries, Says Former Maharashtra Minister Rajesh Tope",
  "url": "https://urgent.news/2026/09/16/ethanol-policy-curbs-to-strain-sugar-distilleries-says-former",
  "topic": "world",
  "section": "World",
  "published": "2026-09-16T10:35:41.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/pune/ethanol-policy-curbs-to-strain-sugar-distilleries-says-former-maharashtra-minister-rajesh-tope"
  },
  "original_language": "en",
  "account": "Former Maharashtra Minister Rajesh Tope has expressed worries about the sustainability of sugar-based ethanol distilleries in the state if the government enforces restrictions on production derived from direct sugarcane juice and B-heavy molasses. Tope explained that sugar factories had committed significant financial resources to ethanol projects in compliance with the Centre's E20 blending policy; however, any limitations on key feedstocks could hinder these plants in obtaining essential raw materials and meeting their bank loan obligations. Maharashtra currently houses approximately 179 active distilleries, comprising 143 sugar or molasses-based plants and 36 grain-based facilities, according to Tope. He estimated that the total investment in sugar industry-based distilleries in Maharashtra ranges between ₹16,000-20,000 crore. These distilleries possess a collective annual ethanol production capacity of around 3.8 billion litres, whereas grain-based distilleries can generate about 1.04 billion litres per year, he stated. Production could potentially decline if the industry is compelled to heavily rely on C-heavy molasses. Nevertheless, salaries, maintenance expenses, insurance, environmental compliance costs, and bank installments would persist, Tope emphasized. He added that decreased production alongside unaltered fixed costs might escalate the per-litre cost of ethanol and strain the financial stability of sugar factories, particularly cooperative entities already burdened with considerable debt. Tope proposed transforming existing sugar-based distilleries into dual-feed systems that can utilize both sugar-based feedstock and grain. He also advocated promoting grain-based ethanol while ensuring the reliable availability of raw materials. Tope outlined three primary objectives for the 2026-27 season: preserving sugar supply and prices, ensuring sufficient ethanol for E20 blending, and safeguarding the financial viability of investments made in distilleries. Furthermore, he called for enhanced value addition from by-products like DDGS (Distillers Dried Grains with Solubles), maize oil, and carbon dioxide, alongside generating biogas or compressed biogas from wastewater. Tope argued that the future policy should focus not only on creating extensive ethanol capacity but also on establishing adaptable capacity that maintains assured raw material access and remains profitable throughout the year.",
  "summary": "Jalna: Former minister Rajesh Tope has raised concerns over the financial viability of sugar-based ethanol distilleries in the state if the government restricts production from direct sugarcane juice and B-heavy molasses. Tope said sugar factories had invested thousands of crores of rupees in ethanol projects in response to the Centre's E20 blending policy, but any restriction on key feedstocks…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}