The Centre on Friday announced a new set of measures aimed at thwarting inflation in food articles, prohibiting the export of onion and halting the use of sugarcane juice for ethanol-making, while slapping tighter controls on wheat stocking by traders, two officials said.
The steps come amid anticipated lower output of food items, including sugar and lentils, due to a patchy summer monsoon and drought in some states. Expecting a sharp fall in sugarcane output, the government has barred diversion of sugarcane juice towards manufacturing of ethanol, which is blended with petrol, food secretary Sanjeev Chopra said.
The decision to stop the sale of cane juice for ethanol-making will not impact India's ambitious push to achieve 20% ethanol blending with petrol by 2025-26, a target known as E20, petroleum secretary Pankaj Jain said.
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