Karnataka Sees Surge in Sugar Mill Applications Amid Rising Ethanol Demand

Karnataka is witnessing a surge in interest for setting up new sugar mills, driven by growing demand for ethanol as an alternative fuel. The state has received 42 applications from entrepreneurs and political leaders seeking permission to establish new sugar mills.

The rush 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.

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 state currently has 81 operational sugar mills, including those run under the cooperative sector.

If all 42 applications receive clearance, Karnataka's total number of sugar mills would increase from 81 to 123. This is due to sugar mills increasingly looking beyond sugar production and towards ethanol, which can be produced from sugarcane and its by-products.