Ethanol production has boosted the prices of grains that Canadian farmers buy to raise cattle and pigs, and Ottawa should curb or eliminate its support for the industry, an agriculture research organization said on Tuesday.

But a leading biofuels group said the report wildly overstated ethanol's impact on grain prices.

A Planning Commission expert committee may soon recommend a revised price for ethanol, currently pegged at an ad hoc price of Rs 27 a litre. Official sources said the commission will forward this to all ministries. It will then be finalised by a group of ministers (GoM). The revised price to be recommended by the commission may be a tad higher, in the range of Rs 28-29 a litre, sources said.

The Tamil Nadu Government has announced a State Advised Price of Rs 2,000 a tonne of sugarcane plus a transport cost of Rs 100 for the 2011-12 sugar season, according to an official press release. The Government will also take steps to enable the production of ethanol by distilleries attached to sugar mills to support the ethanol-blended fuel programme. This will strengthen the revenue for sugar mills which will be able to pay farmers a higher price for cane, the release said.

A judge blocked one of California's signature attempts to lower greenhouse gas emissions, a victory for out-of-state ethanol producers and refiners that has California's air quality board vowing to appeal.

U.S. District Judge Lawrence O'Neill in Fresno on Thursday issued a preliminary injunction against a regulation adopted by the California Air Resources Board in 2010.

The rules are aimed at rewarding biofuel fuel producers that consume less energy in their businesses, including transportation to customers.

A federal tax credit for ethanol expired on Saturday, ending an era in which the federal government provided more than $20 billion in subsidies for use of the product.

The tax break, created more than 30 years ago, had long seemed untouchable. But in the last year, during which Congress was preoccupied with deficits and debt, it became a symbol of corporate welfare. Fiscal conservatives joined liberal environmentalists to kill it, with help from a diverse coalition of outside groups.