A jaggery unit near Chikkabyadarahalli in Pandavapura taluk of Mandya district in Karnataka.

| Photo Credit: M A Sriram

The surge in sugar prices, amid reports of sugarcane being diverted for ethanol production, has renewed demand by farmers for permission to allow jaggery units in Karnataka to produce ethanol, even as the food industry has urged the government to intervene immediately to rein in prices.Although the Centre has rejected suggestions that the rise in sugar prices is due to diversion of sugarcane for ethanol production, farmers’ outfits and food industry representatives allege that the government’s policy of increasing the proportion of ethanol blending in petrol is putting pressure on the availability of sugar in the domestic market.Sugarcane farmers in Karnataka, who have long complained of unremunerative prices for their produce, now see a window of hope. “Why should the government restrict the benefits of ethanol production, which is now used as a fuel additive, to large sugar factories? Local jaggery units should be provided the technology and given permission to produce ethanol,” argued State Sugarcane Growers’ Association president Kurubur Shanthakumar.He said the ethanol produced by jaggery units should be permitted for use as an ‘eco-friendly’ cooking fuel in households, besides as automobile fuel for farmers’ own vehicles and tractors. With the procurement price of ethanol by public sector companies at around ₹65 a litre, farmers’ incomes would rise substantially if they were allowed to sell their surplus produce, Mr. Shanthakumar said.If permitted, sugarcane farmers would no longer be dependent on sugar mills, which he said have not been adequately compensating growers. “Even if the government fixes a price and directs the sugar mills to pay the farmers, the factory managements approach the court and secure a stay,” he said.While Karnataka produces about 600 lakh metric tonnes of sugarcane annually, barely 30 to 40 lakh metric tonnes goes to local jaggery units, with the rest going to sugar factories. Mr. Shanthakumar said that if jaggery units are permitted to produce ethanol, their number in Karnataka would easily rise from the present 15,000 to 50,000. Published - August 29, 2026 04:54 pm IST