Alcohol production at the Mohanur Cooperative Sugar Mill in Namakkal district has remained suspended for five months because of a shortage of molasses, affecting the mill’s revenue and raising concerns among sugarcane farmers.
The cooperative mill produces rectified spirit and fuel alcohol from molasses, a by-product of sugar production. Its dedicated distillery and ethanol production unit have operated on the mill premises for several years, supplying alcohol to distilleries, laboratories and other industrial users. Ethanol produced at the facility is also used for blending with petrol.
The distillery can process 40,000 litres of molasses a day for alcohol production. The shutdown has followed a decline in sugarcane crushing, which has reduced the availability of molasses for the facility.
“Thirty years ago, a separate distillery was established at the Mohanur Cooperative Sugar Mill. The unit has been an important source of revenue for the mill by supplying alcohol to various industries. The present shutdown is causing a financial setback,” O B Kuppudurai, secretary of the Sugarcane Farmers’ Association, said.
The disruption has also raised concerns about the financial position of the cooperative mill. R Rajendran, a sugarcane grower from Mohanur, said the mill invested nearly Rs 5.57 crore in 2025 to modernise and expand its distillery and ethanol facilities.
“Revenue from alcohol production plays a key role in supporting the financial health of the mill. The prolonged shutdown is affecting cash flow and making it difficult to service bank loans and other operational expenses,” said S Murugesan, a member of the sugarcane growers’ association.
The facility’s dependence on molasses links the distillery’s operations directly to sugarcane crushing volumes. When crushing declines, the mill has less of the by-product required to keep its alcohol and ethanol units running, leaving the recently expanded facilities underused.
Sugarcane farmers have urged the state government to arrange the procurement of molasses from other cooperative sugar mills in Tamil Nadu, particularly mills that do not operate distillery facilities of their own. They have also suggested that the Mohanur mill examine the possibility of producing alcohol and ethanol directly from sugarcane juice during the upcoming crushing season.
The farmers’ proposals are aimed at securing feedstock for the distillery and restoring a revenue stream that the cooperative mill has relied on for decades. Any decision on sourcing molasses from other mills or changing the production process will have to be taken before the next crushing season.
