Over the past few years, the rise of ethanol in the biofuel sector has significantly boosted the sugar industry and improved the livelihoods of sugarcane farmers. The diversion of sugarcane into ethanol has strengthened the financial position of sugar mills, which in turn benefits farmers. Faster payments, lower working capital needs, and reduced fund blockage enable mills to pay farmers’ cane dues promptly, increasing the likelihood of farmers expanding their sugarcane acreage and consequently boosting revenue from this cash crop.
The Ethanol Blended with Petrol (EBP) Programme has not only saved foreign exchange but also enhanced the country’s energy security by decreasing reliance on imported fossil fuels. This program improves the liquidity of sugar mills, resulting in timely payments to farmers and generating job opportunities in rural areas. Additionally, blending ethanol with petrol will help reduce pollution and improve air quality.
N. Veerasekaran, the State Secretary of the Bharathiya Kisan Sangam, noted that with a recovery rate of 9.5% for sugarcane in Tamil Nadu, the crop is valuable for ethanol production. He urged the state government to prioritize biofuel production, mentioning that over 60% of sugarcane growers in Tamil Nadu have turned to alternative crops or abandoned farming due to the low recovery rate and the government’s failure to promote high-yield sugarcane varieties. Consequently, Tamil Nadu, once a leader in sugarcane cultivation, has fallen to fifth place in the country.
As per DTNext, Swamimalai Sundara Vimalanathan, Secretary of the Tamil Nadu Cauvery Farmers Protection Association, pointed out that there are 38 sugar mills in the state, including 13 private ones. He called on the government to establish an ethanol unit in each mill to enhance biofuel production and instill confidence in farmers to expand their sugarcane cultivation. He also suggested leveraging NABARD assistance to improve the livelihoods of sugarcane farmers throughout the state, potentially making Tamil Nadu a model for other states.
