Ethyl alcohol or Ethanol can either be produced by direct fermentation of cane juice or from molasses, which is a by-product of the sugar manufacturing process. Ethanol can be used for potable alcohol industry, chemical industry and as a bio-fuel in vehicles (direct/blended with gasoline).

Ethanol is consumed primarily by portable alcohol industry, oil marketing companies (for blending with petrol) and chemical industries. It can also be utilized as fuel in flex-fuel cars either directly as hydrous ethanol or anhydrous ethanol blended with gasoline.

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