Govt considering proposal to allow ethanol production: Pawar

MUMBAI: The government is considering a proposal to allow ethanol production from secondary sugarcane juice to help mills and farmers cope with falling prices after record sugarcane crop, Union Agriculture Minister Sharad Pawar said on Saturday.

The government was examining ways to provide more support to the industry, Pawar told reporters after addressing a meeting of Nationalist Congress Party, of which he is the president.

"There is a proposal with the Cabinet Committee on Economic Affairs (CCEA) for asking oil companies to accept mixing ethanol with fuel, although no decision has been taken," he said.

On the proposal to allow ethanol production from secondary sugarcane juice, Pawar said "the recommendation is to allow mixing five per cent ethanol now and 10 per cent after October 2008".