Ethanol Profits Should Reach Sugarcane Farmers: Farmers’ Association

The State Sugarcane Farmers’ Association has urged the government to ensure that the growing ethanol industry creates direct economic benefits for ordinary sugarcane farmers instead of allowing the profits to remain concentrated among large sugar mills. Association president Shantakumar said a decentralised ethanol production model, similar to the system followed in Brazil, could significantly improve farmers’ incomes. He suggested enabling farmers to produce ethanol through local jaggery-making units with simplified regulations, reducing their dependence on large sugar factories.

According to the association, ethanol produced at local units could be used by farmers as fuel for tractors and other vehicles, while surplus production could be purchased by the government at a predetermined price. The association also sought better Fair and Remunerative Price support for farmers in drought-affected regions and a share of the profits generated from sugar mills’ by-products. It further suggested that surplus sugarcane during high-production periods could be diverted towards ethanol to prevent sugar prices from falling, while ethanol production could be regulated during drought periods to ensure adequate sugar supplies and stable prices.