Amid the soaring prices of sugar in the market, the State Sugarcane Growers’ Association has urged the Government to permit the production of ethanol at jaggery units.

Association President Kurubur Shanthakumar attributed the rising price of sugar to the “substantial profits” made by the sugar factories from ethanol production. “The benefits of ethanol production should not be restricted to large sugar factories. The government should formulate simple rules and a policy enabling farmers to produce ethanol at their own local jaggery-making units,” Mr. Shanthakumar said in a statement here on Sunday.

The ethanol produced in this manner should be permitted to be used as an “eco-friendly cooking fuel in households, fuel for farmers’ own vehicles and tractors and sold to the government at a fixed price, with the government purchasing the surplus ethanol,” he said.

This would significantly reduce farmers’ fuel expenses and contribute to their economic empowerment, Mr. Shanthakumar said.

Mr. Shanthakumar regretted that sugarcane farmers continued to be denied a fair price for their produce.

The governments are allegedly yielding to the powerful sugar industry lobby while completely neglecting the interests of farmers who toil to grow the crop, he said.

At present, severe rainfall deficiency and drought-like conditions in major sugarcane-producing States such as Uttar Pradesh, Maharashtra and Karnataka have resulted in a significant decline in sugarcane yields. Crop losses and rising production costs have left farmers in serious distress. The government must take immediate and appropriate measures to address this crisis, he said.

Citing the “Brazilian model”, Mr. Shanthakumar said greater priority should be given to converting surplus sugarcane into ethanol rather than sugar when the sugarcane production is high. “This would support the fuel sector and help prevent a fall in sugar prices,” he said.

During droughts or periods of inadequate rainfall, when sugarcane yields decline, ethanol production should be immediately regulated and greater emphasis placed on producing sufficient sugar for domestic consumption, he said.

If such precautionary measures are planned and implemented by the government well in advance, the country can avoid a shortage of sugar and protect consumers from the impact of rising prices.

The government’s immediate priorities should be to scientifically increase the Fair and Remunerative Price (FRP) for sugarcane farmers affected by drought, ensure that farmers receive an appropriate share of the profits earned by factories from by-products, and grant farmers the right to independently produce and use ethanol at local jaggery-making units, said Mr. Shanthakumar.

Published - August 23, 2026 08:38 pm IST