Sugar Production in India

Syllabus: General Studies Paper 1

India also produced a record 5,000 lakh metric ton of sugarcane during the October-September season, emerging as the world’s largest producer of the sweetener as well as the world’s 2nd largest exporter of sugar.

• Sugar exports also rose to 109.8 LMT. In sugar seasons 2017-18, 2018-19 & 2019-20, only about 6.2 LMT, 38 LMT & 59.60 LMT of sugar was exported.
• Maharashtra emerged as the highest sugar exporter and producer in India in 2021-22 Sugar Season (SS) exporting almost 60 per cent of total exports in India.
• Supportive international prices and Indian Government Policy led to this feat of Indian Sugar Industry.
• The exports earned foreign currency of about Rs. 40,000 crores for the country.

Factors that led to largest Producer of Sugar:

• Collaborative efforts of Central and State Governments, farmers, sugar mills, ethanol distilleries with very supportive overall ecosystem for business in the country led to this feat.
• During 2021-22, sugar mills procured sugarcane worth more than 1.18 lakh with no financial assistance (subsidy) from Government of India.
• 95% of cane dues have already been cleared.
• In 2020-21, more than 99.9% cane dues are cleared.
• Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU) and National Policy on Biofuels are two of the government initiatives to support sugarcane production and the sugar industry.

Ethanol Production

• Growth of ethanol as biofuel sector in last 5 years has amply supported the sugar sector as use of sugar to ethanol has led to better financial positions of sugar mills due to:

• faster payments,
• reduced working capital requirements and
• less blockage of funds due to less surplus sugar with mills.

• During 2021-22, sugar mills/distilleries made Rs. 18,000 crores from the sale of ethanol. 
• The ethanol production capacity of molasses/sugar-based distilleries has increased to 605 crore liters per annum. 
• The progress aims to meet the target of 20% blending by 2025 under Ethanol Blending with Petrol (EBP) Programme.
• The diversion of sugar to ethanol is expected to increase from 35 LMT to 50 LMT which will generate Rs. 25,000 crores for the sugar mills,”

Sugarcane Crop

• Sugarcane is grown as a Kharif Crop. 
• It needs a hot and humid climate with an average temperature of 21 °C to 27 °C and about 75-150 cm rainfall. 
• Sugarcane is a water-intensive crop.
• Sugarcane can grow in any soil which can retain moisture, however deep rich loamy soil is considered ideal for sugarcane.
• Top Sugarcane Producing States: Maharashtra>Uttar Pradesh > Karnataka
• It is the main source of sugar, Gur (jaggery), khandsari and molasses.