Allow jaggery units to produce ethanol to check sugar prices, says growers' body
The State Sugarcane Growers' Association has urged the government to permit ethanol production at local jaggery-making units, as sugar prices continue to rise in the market. The association's president, Kurubur Shanthakumar, said on Sunday that sugar factories are earning “substantial profits” from ethanol production, which he blamed for the price surge in sugar.
Mr. Shanthakumar argued that the benefits of ethanol production should not be restricted to large sugar factories. He called for the government to formulate simple rules and a policy that would enable farmers to produce ethanol at their own jaggery units. The ethanol produced in this manner, he said, should be allowed for use as an eco-friendly cooking fuel in households, as fuel for farmers' vehicles and tractors, and could also be sold to the government at a fixed price. The government could purchase the surplus ethanol, he added.
The association president claimed that such a move would significantly reduce farmers' fuel expenses and contribute to their economic empowerment. He also expressed regret that sugarcane farmers continue to be denied a fair price for their produce. He alleged that governments are yielding to the powerful sugar industry lobby while neglecting the interests of farmers who cultivate the crop.
The statement comes at a time when severe rainfall deficiency and drought-like conditions in major sugarcane-producing states such as Uttar Pradesh, Maharashtra, and Karnataka have led to a significant decline in sugarcane yields. Crop losses and rising production costs have left many farmers in serious distress. Mr. Shanthakumar urged the government to take immediate and appropriate measures to address this crisis.
Citing what he called the “Brazilian model,” Mr. Shanthakumar recommended that when sugarcane production is high, priority should be given to converting surplus sugarcane into ethanol rather than sugar. This, he said, would support the fuel sector and help prevent a fall in sugar prices. Conversely, during droughts or periods of inadequate rainfall when yields decline, ethanol production should be immediately regulated and greater emphasis placed on producing sufficient sugar for domestic consumption. He said that if such precautionary measures are planned and implemented well in advance, the country can avoid a sugar shortage and protect consumers from rising prices.
Mr. Shanthakumar listed the government's immediate priorities as: scientifically increasing the Fair and Remunerative Price (FRP) for sugarcane farmers affected by drought, ensuring that farmers receive an appropriate share of the profits earned by factories from by-products, and granting farmers the right to independently produce and use ethanol at local jaggery-making units. He emphasized that these steps would help alleviate the distress of farmers and ensure stability in the sugar market.
