A cooperative sugar mill in Kolhapur district of Maharashtra has taken the lead in producing fuel-grade ethanol directly from sugarcane juice in the state, a senior official said on Thursday. The Centre had in July last year allowed sugar mills to manufacture ethanol directly from sugarcane juice or an intermediate product called B-molasses.

The decision was taken to help mills divert cane juice for ethanol manufacturing during surplus years. Maharashtra sugar commissionerate's joint director Sanjay Bhosale told PTI that Kolhapur's Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd is the only cooperative sugar mill in the state which has started making ethanol from sugarcane juice.