Mumbai, Jul 5 (IANS): Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar on Thursday said that to prevent losses for sugarcane farmers, the Central government should maintain its policy of allowing ethanol production from sugarcane juice and the price of ethanol should be increased from Rs 31 to Rs. 42 per litre.

A meeting with Union Home and Cooperation Minister Amit Shah will be held this month regarding these demands, he told the Assembly, adding that the Central government will make decisions in the best interest of sugarcane farmers.

Responding to issues raised by members Jayant Patil and Rajesh Tope, Pawar stated that the Central government had a policy of promoting ethanol production from sugarcane juice and loans were also made available for these projects at an interest rate of six per cent.

"However, later, to control sugar prices and avoid shortages, the Central government changed its policy on ethanol production. Now that there has been record sugar production in the state and the country, there is a need to reconsider the ban on ethanol production from sugarcane juice. Informal discussions have already been held with Amit Shah, who has taken a positive stance. Therefore, after the legislature session ends, efforts will be made to resolve this issue by meeting with the Union Minister within a month," he said.

In recent years, there has been an increase in the Fair and Remunerative Price (FRP), and similarly, there is a need to increase the Minimum Support Price (MSP), he said and expressed confidence that a decision will be made considering the interests of both sugarcane farmers and consumers.