In the run-up to the first anniversary of protests against three farm reform laws, the Cabinet Committee on Economic Affairs (CCEA)has approved a slew of measures that will support farmers growing sugar, cotton and jute.
At a meeting on Wednesday, the CCEA increased the price of ethanol extracted from sugarcane juice for blending in petrol to ₹63.45 a litre in the coming sugar marketing season starting December. This is an 80 paise hike from the previous year. The rate for ethanol extracted from C-heavy molasses has been increased by 97 paise a litre, while that of ethanol extracted from B-heavy molasses is up ₹1.47 as well.
Ethanol blending with petrol is expected to reach 10% next year and 20% by 2025. Oil marketing companies buy ethanol from sugar mills and distilleries at the rate set by the government. By reducing the sugar surplus and increasing mills’ liquidity, the rate hike is expected to reduce their pending arrears in payment to sugar cane farmers. Cane growers make up a sizeable chunk of protesters from western Uttar Pradesh and could also be critical voters in the State’s coming Assembly polls.
