A high-powered task force, formed to find a long-term solution for the sugar sector, is expected to favour disincentivising cane cultivation.
This would be done through measures like assured procurement of alternative crops such as potato and maize in Uttar Pradesh, one of India’s foremost sugarcane growing state, and other policy options.
The panel is also likely to support raising the mandatory ethanol blending to 20 per cent from the current level to deal with perpetual surplus in the sector. The government has fixed a target of 10 per cent ethanol blending by 2022 to cut dependence on energy import.