India, July 19 -- As ethanol-blended petrol (EBP) comes under fresh scrutiny over concerns about vehicle performance and fuel efficiency, Maharashtra's sugar industry is mounting a strong defence of the biofuel programme, arguing that ethanol has become the financial backbone of the state's sugar sector.

Once a by-product of sugar production, ethanol is now a major revenue source for sugar mills, helping them cushion volatile sugar prices, pay farmers on time and reduce India's dependence on imported crude oil. Industry leaders say many factories, particularly in western Maharashtra, would have struggled to survive without it.

Maharashtra's ethanol story began well before blending became a national priority. Pune-based Praj Industries w...