India emerges as the world’s largest producer and consumer of sugar and world’s 2nd largest exporter of sugar

Source: The post is based on the article “India emerges as the world’s largest producer and consumer of sugar and world’s 2nd largest exporter of sugar” published in PIB on 5^th October 2022.

What is the News?

Recently, India has emerged as the world’s largest producer and consumer of sugar as well as the world’s 2nd largest exporter of sugar.

About the sugar season

In Sugar Season (Oct-Sep) 2021-22, a record of more than 5000 Lakh Metric Tons (LMT) of sugarcane was produced in the country. Out of this, 35 LMT sugar was diverted to ethanol production, about 109.8 LMT was exported and 359 LMT sugar was produced by sugar mills.

These exports earned foreign currency of about Rs. 40,000 crores for the country. Further, more than 99.9% of cane dues are cleared.

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.

What are the reasons for an increase in sugar production, export and consumption?

The government has been encouraging sugar mills to divert sugar to ethanol and also to export surplus sugar so that sugar mills may make payment of cane dues to farmers in time and also mills may have better financial conditions to continue their operations.

The ethanol production capacity of molasses/sugar-based distilleries has 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.

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 season.