Upcoming Policy Changes Pose Challenges for Sugar Mill Investors

A new sugar control order is in the works, even as the government lifts restrictions on sugar diversion for ethanol in the upcoming season. But is everything as smooth as it seems?

This is positive news for sugar mills. In the upcoming sugar season, the government has removed restrictions on sugarcane feedstock for ethanol production, permitting mills to use juice, B-heavy molasses, and C-heavy molasses (in descending order of sugar content available for extraction). This change reverses the limitations that were in place during the current season.

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