ANDALIB AKHTER
With record sugar production in the country, India has emerged as the world’s largest producer, consumer of sugar. The Ministry of Consumer Affairs, Food & Public Distribution stated that the sugar season this year was successful with record high sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production.
India has emerged as the world’s largest producer and consumer of sugar as well as the world’s second largest exporter of sugar by producing more than 5000 Lakh Metric Tonne (LMT) sugarcane. Out of the total produce, 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.
In a statement issued by the Ministry of Consumer Affairs, Food & Public Distribution, the sugar season broke all records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production were made during the season.
India also recorded its highest exports of about 109.8 LMT with no financial assistance, which was being extended up to 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 crore for the country,” the notification stated.
The ministry stated that this is outcome of synchronous and collaborative efforts of the Centre and the state governments, farmers, sugar mills, ethanol distilleries with very supportive overall ecosystem for business in the country. “Timely government interventions since last five years have also been crucial in building the sugar sector step by step from taking them out of financial distress in 2018-19 to the stage of self-sufficiency in 2021-22.”
During the sugar season 2021-22, sugar mills procured sugarcane worth more than 1.18 lakh crore and released payment of more than 1.12 lakh crore with no financial assistance (subsidy) from the Centre. Thus, cane dues at the end of sugar season were less than Rs 6,000 crore indicating that 95 per cent of cane dues have already been cleared. It is also noteworthy that for SS 2020-21, more than 99.9 per cent cane dues are cleared. Ethanol growth as a biofuel in the last five years 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”, the ministry has noted.
“In the face of these shocks, countries need to build stronger fiscal and monetary buffers, and reorient scarce resources towards strengthening resilience to protect their people,” he said.
As a whole, South Asia, excluding Afghanistan, is forecast to grow at 5.8% for the current calendar year and the next two years, having grown at 7.8% in 2021. The Sri Lanka forecast is particularly severe – a contraction of 9.2% this calendar year and a contraction of 4.2% next year before it a growth forecast of 1% in 2024.