Use of Surplus Sugar for Ethanol Production Ensures Timely Payments to Sugarcane Farmers

12-Aug-2026 05:53 PM

New Delhi: The Union Minister of State for Food, Consumer Affairs, and Public Distribution stated that the use of surplus sugar (sugarcane components) for ethanol production has not only stabilized sugar prices but also enabled timely payment of sugarcane price arrears to farmers.

The Central Government fixes the Fair and Remunerative Price (FRP) for sugarcane annually, which sugar millers are required to pay. The utilization of sugarcane components for ethanol production is calculated as equivalent to sugar.

According to official data, sugarcane components equivalent to 43 lakh tonnes of sugar were utilized for ethanol production during the 2022-23 marketing season. This figure dropped to 24 lakh tonnes in the 2023-24 season but rose to 35 lakh tonnes in the 2024-25 season.

In the current 2025-26 season, approximately 28 lakh tonnes of sugar equivalent had already been utilized for ethanol production by June 30, 2026. The use of maize in ethanol production has increased rapidly; in the current season, the volume reached 67.90 lakh tonnes by June 30.