PMK urges state to allow all sugar mills to produce ethanol

Referring to a tender floated by PSU Bharath Petroleum Corporation on Saturday, inviting bids for supply of 280.89 crore litres of ethanol for the five per cent blending programme (with petrol), he said, “Sugar mills in Tamil Nadu are not in a position to use this rare opportunity as only eight out of the 46 sugar mills in the State have been permitted to produce ethanol. Though these mills can produce nine crore litres of ethanol a year, the government has fixed 50 lakh litres as the ceiling.” 

Ramadoss said if all the sugar mills in the state were allowed to produce and sell ethanol, it would lead to additional revenue generation. He alleged that the nod for ethanol production was not being given as it would pre-empt cane molasses availability for alcohol production.

“In Tamil Nadu, sugar mills owe Rs 1,050 crore arrears to sugarcane farmers. If sugar mills are allowed to produce ethanol, it will be possible to clear the entire arrear in a single year.” Such a step will also help “increase the procurement price for canes,” he said. 

Referring to the 2016 Assembly election manifesto of the ruling AIADMK that “sugar mills will be encouraged to produce ethanol,” Ramadoss said the government should give permission for ethanol production immediately, in tune with the onset of the annual crushing season. Ethanol is a by-product of cane molasses in the process of sugar production.