Why in News?
- As per the Indian Sugar Mills Association (ISMA), sugar mills in India have made contracts to export 55 lakh tonnes of sweetener.
- The government has permitted sugar mills to export 60 lakh tonnes of sugar till May in the 2022-23 marketing year (October-September).
About Present Status of the Sugar Industry in India-
- Sugar industry is a vital agro-based industry that impacts the rural livelihood of around 50 million sugarcane farmers and about 05 lakh workers directly employed in sugar mills.
- During (Oct-Sep) 2021-22 India emerges as the world’s largest producer and consumer of sugar and world’s second largest exporter of sugar.
- Geographical Conditions for the Growth of Sugar-
- Temperature- Between 21-27°C with hot and humid climate.
- Rainfall- Around 75-100 cm.
- Soil Type- Deep rich loamy soil.
- Top Sugarcane Producing States- Maharashtra, Uttar Pradesh, Karnataka.
Growth Drivers for Sugar Industries-
- Sugar Season (Sep-Oct)- All records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production was made during the season.
- High exports- The exports were the highest at about 109.8 LMT without any financial assistance and earned foreign currency of approx. Rs. 40,000 crores during 2021-22.
- Indian Government Policy Initiatives- Appropriate government initiatives in the past 05 years have taken them out of financial distress in 2018-19 to the stage of self-sufficiency in 2021-22.
- Promoting Ethanol Production- The Government has boosted sugar mills to divert sugar to ethanol and also export surplus sugar so that mills may have better financial conditions to continue their operations.
- Ethanol Blending with Petrol (EBP) Programme- The National Policy on Biofuels 2018, provides an indicative goal of 20% ethanol blending under the Ethanol Blended Petrol (EBP) Programme by 2025.
- Fair and Remunerative Price (FRP)- It is the minimum price that sugar mills have to pay to sugarcane farmers for procurement of sugarcane.
- It is determined on the basis of suggestions of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders.
Problems Associated-
- Competition from Other Sweeteners- The Indian sugar industry is facing rising competition from other sweeteners like high fructose corn syrup, which is cheaper to produce and has a longer shelf life.
- Lack of Modern Technology- Several the sugar mills in India are obsolete and lack the modern technology required to produce sugar efficiently. This makes it challenging for the industry to compete with other sugar-producing countries.
- Environmental Impact- Sugarcane cultivation needs large amounts of water and pesticides, which can have an adverse impact on the environment.
- Further, sugar mills usually release pollutants into the air and water, which can harm adjacent communities.
- Political interference- Sugar industry in India is heavily influenced by politics, with the state and central government having a considerable role in assessing the prices, production, and distribution of sugar. This often leads to a lack of transparency and incompetence.
About Indian Sugar Mills Association (ISMA)-
- Indian Sugar Mills Association is a prime sugar organisation in India. It is the interface between the Government and sugar industry (both private and public sugar mills) in the country.
- The primary objective is to ensure that the functioning and interest of both the private and public sugar mills in the country are protected through conducive and growth-oriented policies of the Government.
Way Forward-
- Diversification- The sugar industry in India should diversify its operations by exploring other products like bio-fuels and organic sugar.
- This would support to decrease the risk associated with fluctuations in sugar prices.
- Encouraging Research and Development- The industry should invest in research and development to enhance crop yields and lower the environmental impact of sugar production.
- Encouraging Sustainable Practices- The industry should promote sustainable practices, like water conservation, integrated pest management, and reduced use of pesticides, in order to diminish the negative impact of sugar production on the environment.