Defending the ethanol blending program, the government has stated that the ethanol policy has helped in stabilizing sugar prices apart from cutting expenditure on crude oil imports and helping mills to clear cane dues of farmers, reports The Hindu Businessline.
This season 40 lakh tonnes of sugar was diverted to ethanol and it is expected to increase in next season, expects the Food Ministry.
As per the data of the Agriculture Ministry, the area under cane cultivation has increased to 51.75 lakh hectares in 2021-22, up by 2.7% compared to 2011-12 (50.38 lh). However, sugarcane production has increased by 22% in these 11 years to 4,394.25 lt from 3,601.36 lt. Sugar production increased by over 36% in these years from 263.42 lt in 2011-12 to 357.6 lt in 2021-22.
The officials have stated that the cane dues that used to be 20-30% have come down as the sugar mills are earning more from ethanol production and they can clear cane dues of farmers in time.
