MUMBAI – India’s cabinet on Wednesday approved raising the price at which oil marketing companies will buy ethanol from sugar mills by 1.3% to 63.45 rupees ($0.8536) a litre, a minister said.

The decision will help sugar mills, saddled with massive mounds of the sweetener, divert cane juice for ethanol production.

Earlier, the government had fixed the price for ethanol produced from sugar cane juice at 62.65 rupees a litre, Anurag Thakur, India’s information and broadcasting minister, told reporters after the cabinet meeting.

(Reporting by Rajendra Jadhav; Editing by Louise Heavens) ((; +91-22-68414378 ; Reuters Messaging:

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