India: World’s Largest Producer of Sugar
Source: PIB
GS II: Policies and Developmental Studies; GS III: Food and Agriculture
What is discussed under India: World’s Largest Producer of Sugar?
- Key Highlights
- Reasons for High Production
Why in News?
Due to a record output of more than 5000 Lakh Metric Tons (LMT) of sugarcane, India has emerged as the world’s largest producer and consumer of sugar, as well as the world’s second-largest exporter.
Key Highlights
- During the Sugar Season (October-September) 2021-22, the country produced a record of more than 5000 Lakh Metric Tons (LMT) of sugarcane.
- Among this, around 3574 LMT was crushed by sugar mills to generate approximately 394 LMT of sugar (Sucrose).
- 35 LMT of sugar was diverted to ethanol production, while sugar mills produced 359 LMT of sugar.
- As a result, India has surpassed the United States as the world’s largest producer and consumer of sugar, as well as the world’s second-largest exporter of sugar.
Reasons for High Production
- During the season, all records of sugarcane output, sugar production, sugar exports, cane acquired, cane dues paid, and ethanol production were made.
Photo by Faran Raufi on Unsplash - The success of the sugar sector is the result of synchronised and coordinated efforts by the Central and State Governments, farmers, sugar mills, and ethanol distilleries, as well as a very favourable general business environment in the country.
- Since the previous five years, timely government interventions have been critical in strengthening the sugar sector step by step, from financial difficulty in 2018-19 to self-sufficiency in 2021-22.
- Sugar mills bought sugarcane worth more than 1.18 lakh crore and released payment worth more than 1.12 lakh crore during SS 2021-22 with no financial help (subsidy) from the Government of India.
- Thus, by the end of the sugar season, cane dues are less than 6,000 crores, suggesting that 95% of cane dues have already been settled.
- The government has been promoting sugar mills to divert sugar to ethanol and export surplus sugar so that sugar mills can pay cane dues to farmers on time and mills can operate in better financial conditions.
- The growth of the ethanol biofuel sector in the last five years has greatly aided the sugar sector.
- The conversion of sugar to ethanol has resulted in better financial positions for sugar mills due to:
- Faster payments
- Reduced working capital requirements
- Less fund blockage due to less surplus sugar with mills
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