Karnataka: 44 applications for new sugar mills as rising ethanol demand fuels industry expansion
Karnataka has received 44 applications for new sugar mills, up from 34 last year, driven by rising ethanol demand under India’s blending programme. Authorities are considering detailed assessments of sugarcane availability, existing crushing capacity and water resources before granting approvals to ensure sustainable industry expansion.
Belagavi: Demand for ethanol in the country is rising because of the Central Government’s programme to increase the share of ethanol blended in petrol, and its impact is being felt in Karnataka’s sugar industry too. Entrepreneurs are applying in large numbers to set up new sugar mills in the state. Last year, 34 applications were received for new sugar mills. With 10 more applications coming in this year, the total has gone up to 44. However, questions are being raised about whether new sugar mills will get enough cane once they start, and how the challenge of water shortage will be tackled. A detailed study of cane production, water availability and the crushing capacity of existing mills is therefore being considered necessary before new mills are given permission.
Karnataka currently has 81 sugar mills, of which 54 are operational in sugar production. Setting up new mills is expected to increase cane crushing capacity in the state, while also boosting job creation and ethanol production. However, expanding the sugar industry requires adequate availability of cane and water. Without proper arrangements for both these resources, starting new units could run into difficulties.
The area under sugarcane has grown sharply. Karnataka has seen a significant rise in the area under sugarcane cultivation over the past few years. In 2016-17, sugarcane was grown on 4.88 lakh hectares in the state. By 2025-26, this area had grown to 7.49 lakh hectares. During the same period, the state is reported to have produced 5.73 crore tonnes of sugarcane. Despite the increase in cane area, it is necessary to assess, keeping in mind the crushing capacity of existing sugar mills and their cane requirement, whether new mills will be able to get enough raw material.
Ethanol demand is encouraging investment. The Central Government’s ethanol blending in petrol programme has increased the importance of ethanol production. Along with sugar production, sugar mills are also getting an opportunity to earn additional income by making ethanol. Karnataka’s annual ethanol production capacity is stated to be 117 crore litres. Given the growing demand for ethanol and the economic opportunities it brings, entrepreneurs appear keen to invest in the sugar industry. However, it would not be right to permit new factories only on the basis of rising ethanol demand. For this, it is also necessary to assess cane production and the state of available natural resources in the areas concerned.
A detailed study is needed before new mills are allowed. Sugarcane production depends on rainfall, irrigation facilities, groundwater availability and yield per acre. Therefore, before approving new sugar mills, a detailed evaluation of the area under cane cultivation, likely cane supply, the crushing capacity of existing mills and water availability in the regions concerned is essential. The growing demand for ethanol is creating new opportunities for the sugar industry, but expanding the industry without ensuring the availability of cane and water could prove challenging. So while deciding on proposals for new sugar factories in Karnataka, it will be important to give priority to water management and the interests of sugarcane farmers along with industrial development.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : ChiniMandi
