Bengaluru
oi-Madhuri Adnal
Karnataka is seeing renewed interest in setting up sugar mills, with entrepreneurs and political leaders seeking to tap into the growing demand for ethanol as an alternative fuel.
As many as 42 applications have been submitted to the Sugar Commissionerate seeking permission to establish new sugar mills across the state, according to official data.
Karnataka has received 42 applications for new sugar mills, driven by increased ethanol demand and government promotion, potentially raising the state’s total from 81 to 123 mills, particularly in the Kittur and Kalyana regions.
The increased interest comes at a time when the Centre is promoting ethanol blending as part of its efforts to reduce dependence on conventional fuels. With global oil supply disruptions adding to concerns over fuel security, demand for ethanol has grown, making sugar mills an increasingly attractive business proposition.
Most of the 42 applications have come from the Kittur Karnataka and Kalyana Karnataka regions.
Belagavi accounts for the highest number of applications with 13, followed by Vijayapura with eight, Kalaburagi with six, and Bagalkot and Dharwad with four each.
The sugar industry has a strong presence among influential political leaders in the Kittur Karnataka region. Many prominent leaders from the region are already associated with sugar mills, and several of those seeking permission for new units are also politically influential figures.
The rush to establish new mills comes against the backdrop of Karnataka’s large sugarcane cultivation base.
Sugarcane is currently grown across around 7.5 lakh hectares in the state. Karnataka crushes an estimated 576 lakh metric tonnes of sugarcane every year, producing around 49 lakh metric tonnes of sugar.
The state currently has 81 operational sugar mills, including those run under the cooperative sector. Belagavi alone accounts for 29 sugar mills, making it one of Karnataka’s major sugar-producing districts.
Karnataka Could Have 123 Sugar Mills
The 42 applications are now awaiting the approval process. If all of them receive clearance and the proposed units are established, Karnataka’s total number of sugar mills would increase from the existing 81 to 123.
The sharp rise in applications comes as sugar mills increasingly look beyond sugar production and towards ethanol, which can be produced from sugarcane and its by-products.
The growing ethanol market, coupled with government efforts to increase ethanol blending in petrol, has consequently made setting up new sugar mills an increasingly attractive proposition for investors and industry players in Karnataka.
