Located in Asia, India is the largest sugar producer in the world and the country has produced record volumes of sugarcane in the previous year. Currently, India occupies the top spot both in terms of sugar production as well as consumption in the world. Owing to this, the Central Government of India encourages sugar mills to export sugar to gain profit and to clear the cane dues of farmers, after ensuring adequate supplies for domestic needs. According to the press release, the Ministry of food and public distribution stated that India has produced record sugarcane i.e., over 5000 lakh tonne amid 2021-22 season which brightens the prospect for sugar exports.
The Ministry also said, out of the total sugarcane production during 2021-22, about 3574 lakh tonne of sugarcane is crushed and converted to 394 Lakh metric tonne of sucrose in sugar mills. Out of 394 LMT of sugar, 36 LMT sugar is converted into ethanol and the remaining 359 LMT is sent to sugar mills for sugar production.
As there is huge production of sugarcane in 2021-22, the year is recognized as watershed season for the sugar industry. Complete records of sugar production, cane procured, sugarcane exporter, sugar exports, ethanol production and cane dues payment was made amid this season.
Role Of Central Government Of India
The Central Government of India plays a crucial role in uplifting the status of the sugar sector. If we talk about the seasonal production, around 320-360 LMT of sugar is produced every year, out of which, 260-280 LMT is generally utilized to meet the domestic requirements and the remaining quantity results in carry-over stock in sugar mills.
The Ministry of food and public distribution said that, “the ex-mill sugar prices remain subdued due to the surplus availability of sugar in the country that leads to cash loss to sugar mills. The carry-over sugar stock i.e. 60-80 LMT hampers the liquidity of sugar mills and lead to blockage of funds, this result in inflation of cane prices arrears.
To prevent the cash loss to sugar mills which is caused due to restrained sugar prices, the Government of India brought in the concept of Minimum Selling Price (MSP) i.e., Rs.29/kg in June 2018 and it was revised and updated to Rs. 31/kg in February 2019. On the basis of the above facts, the press stated that the Central Government has played a major role in the establishment of the sugar sector and taking them out of economic distress.
Outcome Of Government Intervention In Upliftment Of the Sugar Sector
For self-sufficiency and long-term stability of the sugar sector, the central Government of India is constantly encouraging the sugar mills for converting sugar into ethanol and export excess sugar: this will not only aid in betterment of financial condition of the mills to function properly but also helps in making timely payment of cane dues to farmers.
By adapting the Government suggestions and attaining success in both the above mentioned policies the sugar sector of India is functioning without subsidy since sugar season 2021-22. In 2021-22, the distilleries or sugar mills made a revenue of more than Rs 20 thousand crore from the sale of ethanol which helped the sugar mills to clear the cane dues of farmers.
The major highlight of the sugar season 2021-22 is the highest export of approximately around 110 LMT with no financial aid. The Indian Government Policies as well as supportive international prices directs the victory of the Indian sugar industry.
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