New Delhi: The central government has taken a preemptive step by filing a caveat in the High Courts of Bombay and Karnataka, ensuring it is heard before any potential stay orders are issued on the restrictions imposed on the usage of sugar for ethanol production, reported The Economic Times.
Few sugar firms have approached various courts seeking a stay on the government’s December 7 order, which prohibits mills from producing ethanol from sugarcane juice in the 2023-24 season. To prevent the courts from issuing a stay order without hearing the government’s perspective, the caveat has been filed, according to the official.
The ban was imposed by the Centre to control the surge in sugar prices in the domestic market, despite export restrictions due to reduced sugarcane yields in major producer states like Maharashtra and Karnataka.
The Food Ministry, in early December, directed sugar mills not to use cane juice or syrup to produce ethanol. In a U-turn, the central government, in mid-December, allowed the utilization of juice as well as B-heavy molasses to produce ethanol but capped the diversion of sugar at 17 lakh tonnes for the current marketing season.
