Law to boost production of alcohol from sugar beets

Excise Minister M P Renukacharya on Wednesday said there was a growing demand from sugar factories (producing alcohol using sugar cane) to shift to alcohol production using sugar beets. To facilitate this, the technical committee of the department had suggested an amendment to the Act.

The existing Act only provides for manufacture of spirit using molasses, tapioca and malt. Renukacharya said two sugar factories – Renuka Sugars and Godavari Sugars - had placed a proposal to produce alcohol using sugar beets. After weighing the options, it was decided to give approval, he added.

Sugar beet, unlike sugar cane, is a short-term (90 days) crop. Department officials said that the alcohol produced using sugar beets would be far cheaper than that produced using sugar cane.

The committee, comprising members including the Excise commissioner, industry representatives and a chemical engineering professor from IISc, has, however, not given approval for production of alcohol using foodgrains. The amendment once approved by the Cabinet will be tabled in the legislature, added Renukacharya.

The minister said that in order to strengthen the enforcement wing of the department, a proposal had been placed before the Finance department for purchase of pistols.

He said his department would generate Rs 300 crore additional revenue as opposed to the target fixed for this year. “It is estimated that the department will achieve a revenue target of Rs 9,200 crore this year, but the department is sure to do better than this.”