{
  "id": 2809077,
  "title": "Sugar price rise: Allow jaggery units to produce ethanol, says sugarcane growers’ body",
  "url": "https://urgent.news/2026/08/23/sugar-price-rise-allow-jaggery-units-to-produce-ethanol-says",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-23T15:08:50.000Z",
  "source": {
    "name": "The Hindu",
    "slug": "the-hindu",
    "url": "https://www.thehindu.com/news/national/karnataka/sugar-price-rise-allow-jaggery-units-to-produce-ethanol-says-sugarcane-growers-body/article71381396.ece"
  },
  "original_language": "en",
  "account": "Amid skyrocketing sugar prices, the State Sugarcane Growers’ Association has called on the government to allow jaggery units to produce ethanol. Association President Kurubur Shanthakumar blamed the high sugar prices on the substantial profits the sugar factories reap from ethanol production. He urged the government to create straightforward rules and policies enabling farmers to generate ethanol at their local jaggery-making facilities, rather than limiting ethanol production to large factories. Shanthakumar suggested that the ethanol produced should be used as an eco-friendly cooking fuel in households, for farmers' personal vehicles and tractors, and sold to the government at a fixed price, with surplus ethanol being purchased by the government. This move would lessen farmers' fuel expenses and help them economically. Shanthakumar was disappointed that sugarcane farmers continued to receive inadequate prices for their crops. He claimed that governments often prioritize the interests of the powerful sugar industry over the farmers who toil to grow the crop. Currently, severe rainfall deficiency and drought conditions in major sugarcane-producing states like Uttar Pradesh, Maharashtra, and Karnataka have led to a sharp decline in sugarcane yields, causing significant crop losses and mounting production costs. The government must take swift and appropriate actions to address this crisis, Shanthakumar said. Citing the Brazilian example, he proposed giving greater priority to converting surplus sugarcane into ethanol instead of sugar when sugarcane production is high. This would benefit the fuel sector and help prevent a drop in sugar prices. During droughts or times of insufficient rainfall when sugarcane yields drop, ethanol production should be regulated, and more emphasis placed on producing enough sugar for domestic consumption, Shanthakumar argued. If these precautionary steps are planned and executed by the government in advance, the country can avoid sugar shortages and shield consumers from the impact of rising prices. The government should first focus on scientifically raising the Fair and Remunerative Price for drought-affected sugarcane farmers, ensuring farmers receive a fair share of the profits from factories' by-products, and granting farmers the authority to independently produce and use ethanol at local jaggery-making units, Shanthakumar advised.",
  "summary": "Kurubur Shanthakumar attributes the rising price of sugar to the ‘substantial profits’ made by the sugar factories from ethanol production",
  "key_points": [
    "State Sugarcane Growers’ Association urges government to allow jaggery units to produce ethanol.",
    "High sugar prices attributed to substantial profits from ethanol production by sugar factories."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}