Karnataka Sugarcane Farmers Demand Ethanol Production Rights for Jaggery Units as Sugar Prices Soar
Political Bureau, Bangalore Mail
Mysuru / Bengaluru
As retail sugar prices continue to climb ahead of the major festive season—including Gowri-Ganesha, Dasara, and Deepavali—sugarcane growers across Karnataka have renewed their demand for policy intervention. The State Sugarcane Growers’ Association has urged the government to allow local cottage-scale jaggery units (alemane) and grain-based processors to manufacture ethanol directly.
Industry representatives and farmers attribute the current hike in domestic sugar prices partly to the diversion of massive sugarcane volumes toward the Union Government’s fuel-blending initiatives. Allowing decentralized jaggery units to join the bioenergy ecosystem, growers argue, would stabilize supply while directly improving rural incomes.
Breaking Mill Monopolies and Boosting Rural Income
Speaking on the issue, Kurubur Shanthakumar, President of the State Sugarcane Growers’ Association, emphasized that the economic gains from India’s biofuel push should not remain concentrated among large industrial sugar factories.
“Local jaggery units must be provided with the necessary technical backing and legal authorization to produce ethanol,” Shanthakumar stated. “Allowing farmers to process surplus cane into ethanol for direct sale to oil marketing companies or for personal farm use will significantly increase agricultural earnings.”
With public sector oil firms currently procuring ethanol at approximately ₹60 to ₹65 per litre, growers view direct participation as a game-changer. Key benefits highlighted by the association include:
Reduced Financial Dependence: Farmers can bypass corporate sugar mills, which frequently face criticism for delayed cane dues.
Scale and Expansion: Karnataka produces nearly 600 lakh tonnes of sugarcane annually, but only 30 to 40 lakh tonnes reach local jaggery units.
Job Creation: Authorizing ethanol processing could expand the state’s active jaggery units from 15,000 to over 50,000, creating thousands of rural jobs.
Local operators in sugarcane belts like Mandya have expressed readiness to adopt the technology, provided the state guarantees technical guidance and a stable procurement framework.
Historical Precedent and Agricultural Impact
The issue was discussed extensively at a recent state seminar titled ‘Production of Ethanol from Sugarcane, Paddy, and Maize’ in Bengaluru. Leaders and domain experts highlighted Karnataka’s historical leadership in the biofuel domain.
Pasha Patel, Chairman of the Maharashtra Agricultural Prices Commission, reminded delegates that Karnataka was an early pioneer in bioenergy. As far back as 1840, the historic Mysugar factory in Mandya produced ethanol that was transported to Bombay for fuel blending.
