Mahayuti hopes to profit from lifting of sugar curbs for ethanol production
The Centre lifted restrictions on sugar mills using cane juice for ethanol, aiming to pacify sugarcane farmers before Maharashtra's state polls, impacting 80 assembly seats.
Mumbai: The Centre’s decision to lift restrictions on sugar mills using cane juice to produce ethanol might help the Mahayuti government pacify sugarcane farmers, a key vote bank in around 80 assembly seats in western and northern Maharashtra and Marathwada ahead of the state polls in November.
Ethanol producers will be allowed to use sugarcane juice, B-heavy and C-heavy molasses from November, according to the food ministry. The Bharatiya Janata Party-led central government had banned mills from using cane juice and syrup to make ethanol in December 2023 to increase its sugar reserves after a season of poor rainfall.
This forced sugarcane factories with ethanol-making capacity to stop production, leading to revenue loss. Ethanol gives better returns than sugar, and factories extended this benefit to sugarcane farmers. The ban was partially lifted on December 14, allowing the diversion of 1.7 million tonnes of sugar for ethanol production for the 2023-24 supply year. However, the ban on producing ethanol from B-heavy molasses and sugarcane juice was continued.
As the ban affected farmers’ income, the BJP started facing the heat as the Lok Sabha elections began. So, in April, the central government lifted the partial ban and allowed sugar mills to use their existing stock of B-heavy molasses for ethanol production.
Now, with the assembly elections around the corner in Maharashtra, the central government has lifted the ban on all types of ethanol production. Harshvardhan Patil, president of the National Cooperative Sugar Factory Federation, welcomed the decision and said it will help increase the income of sugarcane farmers. In a statement, Patil said that the federation had requested union home minister Amit Shah to lift the ban on ethanol production on August 10.
According to the federation’s estimates, the production of ethanol from B-heavy molasses will be 3.29 billion litres, and ethanol production from direct juice will be 7.186 billion litres. At current rates, the total expected revenue will be ₹24,719.19 crore.
Maharashtra has a large vote bank of sugarcane farmers in western Maharashtra, parts of northern Maharashtra, and all districts of Marathwada. However, farmer leader and former MP Raju Shetti said that just lifting the ban wasn’t going to be enough for the Mahayuti government to pacify the sugarcane farmers.
“There was no need to ban ethanol production last year. Now, they are lifting the ban with a political motive, as unrest among sugarcane farmers can cost the Mahayuti government in over 80 assembly constituencies. But only lifting the ban will not solve the problems of farmers. The government should increase the minimum support price from ₹32 to ₹40 and also increase the procurement price of ethanol,” he said.