In recent years, the growth of ethanol in the biofuel sector has greatly benefited the sugar industry and enhanced the livelihoods of sugarcane farmers. By diverting sugarcane for ethanol production, sugar mills have improved their financial stability, which in turn supports farmers. Prompt payments, reduced working capital requirements, and less capital tied up allow mills to pay farmers’ cane dues on time, increasing the chances that farmers will expand their sugarcane fields and boost their revenue from this cash crop.

The Ethanol Blended with Petrol (EBP) Programme has not only conserved foreign exchange but has also bolstered the country’s energy security by reducing dependence on imported fossil fuels. This initiative enhances the liquidity of sugar mills, ensuring timely payments to farmers and creating job opportunities in rural areas. Furthermore, blending ethanol with petrol is expected to lower pollution levels and improve air quality.

N. Veerasekaran, State Secretary of the Bharathiya Kisan Sangam, highlighted that with a recovery rate of 9.5% for sugarcane in Tamil Nadu, the crop is crucial for ethanol production. He urged the state government to focus on biofuel production, noting that over 60% of sugarcane farmers in Tamil Nadu have switched to alternative crops or left farming altogether due to low recovery rates and the lack of promotion for high-yield sugarcane varieties. As a result, Tamil Nadu has slipped from its former position as a leader in sugarcane cultivation to fifth place nationally.

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According to a report by DTNext, Swamimalai Sundara Vimalanathan, Secretary of the Tamil Nadu Cauvery Farmers Protection Association, mentioned that the state has 38 sugar mills, including 13 private ones. He urged the government to set up an ethanol unit in each mill to boost biofuel production and restore farmers’ confidence in expanding their sugarcane cultivation. He also proposed utilizing NABARD assistance to enhance the livelihoods of sugarcane farmers across the state, potentially positioning Tamil Nadu as a model for other states.

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