Karnataka farmers seek ethanol production rights amid record jaggery prices

Jaggery prices in Mandya, Karnataka, have reached a historic high of ₹6,740 per quintal, driven by shortages in sugarcane and labour. Traditional jaggery-making units are struggling as a lack of skilled workers and harvesting labourers has reduced production and supply to external markets.

In response to rising sugar prices and the profitability of ethanol, the State Sugarcane Growers’ Association has urged the government to allow farmers to produce ethanol at local jaggery-making units. Association president Kurubur Shanthakumar argued that while large sugar mills earn substantial profits from ethanol, farmers struggle for fair returns. He proposed a policy where farmers could use produced ethanol for household fuel or vehicles, while selling surplus to the government at a fixed price.

The association also highlighted that rainfall shortages and drought-like conditions in Karnataka, Maharashtra, and Uttar Pradesh have impacted sugarcane yields, adding financial pressure to growers.