Karnataka Farmers Seek Approval For Jaggery Units to Produce Ethanol

Rising sugar prices have renewed demands from farmers in Karnataka for permission to allow jaggery units to produce ethanol, as concerns grow over the availability of sugar in the domestic market. The demand has emerged amid reports of sugarcane being diverted towards ethanol production, while representatives of the food industry have urged the government to take immediate steps to control prices.

Farmers' organisations have argued that jaggery units should also be permitted to participate in ethanol production so that they can benefit from the growing demand for the fuel. They believe allowing such units to produce ethanol could provide additional opportunities for sugarcane growers and diversify the use of the crop. The issue has gained attention as the price of sugar has increased and questions have been raised over the availability of the commodity.

The Centre, however, has rejected suggestions that the rise in sugar prices is being caused by the diversion of sugarcane towards ethanol production. The government has maintained that the increase cannot simply be attributed to ethanol-related diversion. Despite this position, farmer groups and sections of the food industry continue to link the pressure on sugar availability to the country's expanding ethanol blending programme.

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The government has been increasing the proportion of ethanol blended with petrol as part of its broader effort to promote alternative fuels and reduce dependence on conventional petrol. Sugarcane and products from the sugar industry are among the important feedstocks used in ethanol production. Farmers' organisations argue that policies supporting ethanol production should also ensure that adequate sugar remains available for domestic consumption.

The food industry has meanwhile called for government intervention to prevent further increases in sugar prices. Higher sugar costs can affect a range of food products and increase input expenses for manufacturers. Industry representatives have therefore sought measures to improve domestic availability and contain price pressures while the debate over the competing uses of sugarcane continues.

The demand for permission to produce ethanol at jaggery units highlights the wider debate over how Karnataka's sugarcane crop should be utilised. Farmers are seeking greater flexibility for jaggery producers while the food industry is concerned about the impact of higher sugar prices. The Centre's rejection of the ethanol-diversion explanation means that the causes of the current price surge remain contested, even as stakeholders seek measures to protect both farmers and consumers.

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