Govt received 44 applications to set up sugar factories in state: Minister

The state government received 44 applications seeking permission to set up new sugar factories with a total investment of around Rs 15,000 crore, Sugar Minister Shankar Patil Munenakoppa said on Sunday.

Munenakoppa, who was here to meet Union Commerce and Food Minister Piyush Goyal, told DH that mostly these factories wanted to set up their plant in Belagavi, Vijayapura, Bagalkot, Koppal and Dharwad districts. "Since the basic licences for sugar factories have to be given by the Directorate of Sugarcane Development and Sugar, Government of Karnataka, we have started processing of these applications," the Minister said.

At present 78 sugar factories are operating with full capacity in the state. Last crushing season, a total 622 lakh tonnes of sugarcane were crushed by these factories, while this year it is expected to touch 650 lakh tonnes, he said.

He also claimed that all factories have cleared their dues to farmers.

On the request from farmers to increase the Fair and Remunerative Price (FRP), he said the state government has already submitted a memorandum to the Union Commerce and Food Minister Piyush Goyal.

He said recently he held a discussion with sugar factories and requested them to share a portion of their profit from byproduct ethanol with farmers and factories have responded positively.

Out of 72 sugar factories in the state, 34 factories have the licence to produce byproducts, he said.

The Union Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi last month, raised the price of ethanol extracted from sugarcane juice to Rs 65.60 per litre from the current Rs 63.45 per litre for the supply year beginning December 2022.

The rate for ethanol from C-heavy molasses has been increased to Rs 49.40 per litre from Rs 46.66 per litre currently, and that of ethanol from B-heavy to Rs 60.73 per litre from Rs59.08 per litre.

At present, 10 per cent ethanol is blended in petrol (10 per cent ethanol, 90 per cent petrol) and the government is looking to double this quantity by 2024-25.

Union Petroleum Minister Hardeep Singh Puri recently said that for the targeted 20 per cent blending of ethanol in petrol, the country will need a 1,000 core litre capacity.

At present 450 crore litres is being produced and tenders for 400 crore litres have been issued, he said.