Centre Revises Ethanol Curb, Maharashtra & Karnataka To Benefit

The Union government’s sudden move to permit the use of sugarcane juice and B-heavy molasses for ethanol production with a ceiling of 17 lakh tonnes for the current marketing year has hardly surprised sugar barons in Maharashtra and Karnataka since these two major states are the ruling BJP’s strongholds. Together, they produce around 60% of India’s total sugar output. Though Karnataka has voted against the BJP in recent assembly elections, the party is preparing to storm the state for the upcoming Lok Sabha election. The same logic applies to Maharashtra. Veteran leader Sharad Pawar’s power base is dependent upon the massive sugar lobby, which now is fractured. Its one section has followed his nephew Ajit Pawar, who has now joined the Shinde-Fadnavis government and started praising PM Narendra Modi as well home minister Amit Shah. Immediately after the Centre’s decision about the ethanol production restriction was announced, there was a wave of anger in Maharashtra. The Opposition cornered the state government and Ajit Pawar had to assure the legislature that he would visit Delhi to plead with the Centre to reconsider the decision. Now that it has happened, the Opposition ranks have been re-planning their strategy. The victorious three-party government, on the other hand, will exploit the political benefit of the revised decision. The Centre’s reassurance that there will be adequate sugar availability in the country in the months to come will assuage the sentiments of the middle class, too, it is felt.