As India seeks energy independence, booze may be a hurdle in the way

The Uttar Pradesh government recently announced a further increase in the quota of molasses that needs to be supplied to liquor makers to 18% of total state output from 16%.

India, the world’s fastest growing guzzler of oil, is seeking to reduce its addiction to imports by using more sugar cane ethanol as fuel -- but a mandate to supply molasses to the liquor industry in the top producing state is threatening to derail those plans.

In Uttar Pradesh state in northern India, there is a local government order requiring sugar mills to provide fixed amounts of molasses, a product of the refining process, to alcoholic drinks manufacturers at rates well below market levels, which means less is available to turn into ethanol for powering cars.

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