New Delhi: India has emerged as the world’s largest producer and consumer and the second largest exporter of sugar, the Ministry of Consumer Affairs, Food & Public Distribution, stated here today. There is at present an optimum closing balance of 60 LMT of sugar which is essential to meet domestic requirements for 2.5 months. The diversion of sugar to ethanol and exports led to the unlocking of the value chain of the whole industry as well as improved financial conditions of sugar mills leading to more optional mills in the ensuing season, the Ministry stated.
In sugar season (October-September) 2021-22, a record of more than 5000 Lakh Metric Tons (LMT) of sugarcane was produced in the country out of which about 3574 LMT of sugarcane was crushed by sugar mills to produce about 394 LMT of sugar (Sucrose). Out of this, 35 LMT sugar was diverted to ethanol production and 359 LMT sugar was produced by sugar mills. With this, India has emerged as the world’s largest producer and consumer of sugar as well as the world’s 2nd largest exporter of sugar.
“The season has proven to be a watershed season for the Indian sugar sector. All records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production were made during the season,” the Ministry stated.
During the present season, there were the highest exports of about 109.8 LMT sugar, “that too with no financial assistance which was being extended up to 2020-21”. The Ministry stated that the supportive international prices and Government policy led to the Sugar exports earning foreign currency of about Rs. 40,000 crores.
During the sugar season 2021-22, sugar mills procured sugarcane worth more than 1.18 lakh crore and released payments of more than 1.12 lakh crore with no financial assistance (subsidy) from the Government of India. Thus, cane dues at the end of the sugar season were less than ₹ 6,000 crores indicating that 95% of cane dues were already cleared. “It is also noteworthy that for SS 2020-21, more than 99.9% of cane dues are cleared,” the Ministry claimed.
During 2021-22, the revenue of about ₹ 18,000 crores was made by sugar mills/distilleries from the sale of ethanol which, according to the Ministry, also played its role in the early clearance of cane dues of farmers. The ethanol production capacity of molasses/sugar-based distilleries increased to 605 crore litres per annum and the progress is still continuing to meet targets of 20% blending by 2025 under Ethanol Blending with Petrol (EBP) Programme. In the new season, the diversion of sugar to ethanol is expected to increase from 35 LMT to 50 LMT which would generate revenue for sugar mills amounting to about ₹ 25,000 crores.
– global bihari bureau
