India, Oct. 21 -- Maharashtra's sugar industry, already grappling with financial challenges and an anticipated decline in sugar production this season, faces another major setback after the Centre's latest policy decision on Saturday, which has effectively halted the purchase of ethanol produced from sugarcane juice, syrup and B-heavy molasses. The move threatens to deprive sugar mills of an assured revenue stream of around Rs.7,000 crore, further straining their finances and potentially affecting payments to sugarcane farmers.

The government's decision is aimed at increasing domestic sugar availability in order to prevent further price hikes ahead of the festive season and the coming year. However, it is expected to have significant fin...