In Sugar Season (Oct-Sep) 2021-22, a record of more than 5000 Lakh Metric Tons (LMT) 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 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.
- Another highlight of the season is the highest exports of about 109.8 LMT that too with no financial assistance which was being extended upto 2020-21.
- Supportive international prices and Indian Government Policy led to this feat of Indian Sugar Industry.
- These exports earned foreign currency of about Rs. 40,000 crores for the country.
Sugar policy
- With the amendment of the Sugarcane (Control) Order, 1966 on 22.10.2009, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‘Fair and Remunerative Price (FRP)’ of sugarcane for 2009-10 and subsequent sugar seasons.
- The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) in consultation with the State Governments and after taking feedback from associations of sugar industry.
- The FRP of sugarcane is payable by sugar factories for each sugar season.
- Government has introduced the concept of Minimum Selling Price (MSP) of sugar to prevent fall in ex-mill prices of sugar & accumulation of cane arrears.
- Diversion of surplus sugar for production of ethanol led to improved financial conditions of sugar mills. As a result, they are able to clear cane dues early.
- Due to exports and diversion of sugar to ethanol, sugar sector has become self-sustainable and budgetary support for export and buffer are not required to improve liquidity of mills.
- India’s 85% requirement of crude oil is met through imports. But with a view to reduce import bill on crude oil, to reduce pollution & to make India Atmanirbhar in petroleum sector, Government is pro-actively moving ahead to increase production & blending of ethanol with petrol under the Ethanol Blended with Petrol programme.
