The State Sugarcane Growers’ Association has demanded that the government allow local jaggery units to produce ethanol to break the monopoly of large sugar mills. Association President Kurubur Shanthakumar links rising sugar prices to the massive profits mills make from ethanol.
- Sugarcane growers are demanding ethanol production rights for local jaggery units.
- Rising sugar prices are being attributed to the massive profits made by large mills from ethanol.
- The association suggests adopting the 'Brazilian model' to stabilize the market.
Amidst the soaring prices of sugar in the domestic market, the State Sugarcane Growers’ Association has launched a significant demand against the government. The association has urged the authorities to permit the production of ethanol at local jaggery-making units, aiming to decentralize the lucrative ethanol industry.
Association President Kurubur Shanthakumar has pointed a finger at the large-scale sugar factories, attributing the current spike in sugar prices to the "substantial profits" these mills derive from ethanol production. He argued that the economic benefits of ethanol should not be the exclusive domain of large industrial players.
Why This Matters
BozokMedia analysis shows that the current sugar crisis is deeply intertwined with the energy sector. By allowing small-scale jaggery units to produce ethanol, the government could potentially lower fuel costs for farmers and create a more resilient, decentralized energy economy. This move would directly address the economic distress faced by smallholders.
The government must formulate simple rules to ensure that the benefits of ethanol production reach the grassroots farmers, not just the powerful industry lobby.
The crisis is further compounded by environmental factors. Major sugarcane-producing states, including Uttar Pradesh, Maharashtra, and Karnataka, are currently grappling with severe rainfall deficiency and drought-like conditions. This has led to a sharp decline in sugarcane yields and a spike in production costs.
The Brazilian Model and Market Stability
In a strategic suggestion, Mr. Shanthakumar cited the "Brazilian model" as a blueprint for success. He proposed that during periods of high sugarcane production, priority should be given to converting surplus cane into ethanol rather than sugar. This approach helps stabilize sugar prices and supports the fuel sector simultaneously.
| Feature | Large Sugar Mills | Local Jaggery Units |
|---|---|---|
| Ethanol Production | Currently Permitted | Requested Permission |
| Profit Distribution | Concentrated in Mills | Proposed for Farmers |
| Primary Use | Industrial/Government | Domestic/Agricultural Fuel |
Furthermore, the association suggested that during droughts, ethanol production should be regulated to ensure sufficient sugar is produced for domestic consumption. This proactive management could prevent market shortages and protect consumers from price volatility.
Frequently Asked Questions
1. Why are sugar prices rising according to the growers?
The association claims that large sugar mills are prioritizing highly profitable ethanol production, which impacts the sugar supply and market dynamics.
2. How would ethanol production help farmers?
It would allow them to use fuel for their own tractors and vehicles or sell surplus to the government, providing an additional revenue stream.
