Karnataka sugar farmers push for ethanol production as prices surge

Amid growing concerns over elevated sugar prices in India's markets, farmers in Karnataka are pressing authorities to permit jaggery production units to manufacture ethanol as an alternative revenue stream. The move reflects attempts by the agricultural sector to diversify income sources amid volatile commodity pricing.

The proposal has gained traction as sugar prices have climbed considerably in recent months, squeezing consumer purchasing power across the country. Farmers argue that enabling ethanol production from sugarcane-based jaggery units would provide additional market outlets and stabilize their earnings.

However, the Centre has rejected suggestions that sugarcane diversion toward ethanol production is a primary driver of the current price surge. Government officials have maintained that other factors, including supply constraints and demand fluctuations, are primarily responsible for the uptick in sugar costs affecting Indian consumers.

The debate underscores the tension between supporting farmer livelihoods and maintaining stable food prices for consumers. With ethanol production gaining importance in India's energy security agenda, policymakers must balance support for alternative agricultural uses while ensuring adequate sugarcane supplies for sugar manufacturing.