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More than 5000 Lakh Metric Tons sugarcane produced in Sugar Season 2021-22
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Tuesday, 24 January, 2023, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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The year 2021-22 has proven to be a watershed season for 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. During the season, record more than 5000 Lakh Metric Tons (LMT) sugarcane was produced in the country out of which about 3574 LMT of sugarcane was crushed by sugar mills to produce about 394 Lakh MT of sugar (Sucrose) out of which 36 lakh MT sugar was diverted to ethanol production and 359 LMT sugar was produced by sugar mills.
India has emerged as the world’s largest producer and consumer of sugar as well as the world’s second-largest exporter of sugar after Brazil, in Sugar Season (Oct-Sep) 2021-22.
In every sugar season, production of sugar is around 320-360 Lakh Metric Tons as against the domestic consumption of 260-280 LMT which results in huge carry over stock of sugar with mills. Due to excess availability of sugar in the country, the ex-mill prices of sugar remain subdued resulting in cash loss to sugar mills. This excess stock of about 60-80 LMT also leads to blockage of funds & affects the liquidity of sugar mills resulting in accumulation of cane price arrears.
With a view to prevent cash loss to sugar mills caused due to subdued sugar prices, Government of India in June 2018 introduced the concept of Minimum Selling Price (MSP) of sugar & fixed MSP of sugar at Rs 29/ kg which was revised to Rs 31/ kg with effect from Feb 14, 2019.
Timely intervention of the Central Government since last five years has 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. It is a remarkable achievement that during SS 2021-22, sugar mills procured sugarcane worth more than ? 1.18 lakh crore and released payment of more than 1.15 lakh crore for the season with no financial assistance (subsidy) from Government of India. Thus, cane dues for sugar season 2021-22 are less than ? 2,300 crore indicating that 98% of cane dues have already been cleared. It is also noteworthy that for SS 2020-21, about 99.98% cane dues are cleared.
As a long-term measure to enable sugar sector to grow as self-sufficient, the Central 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. With success in both the measures, Sugar sector is now self-sufficient with no subsidy for the sector since SS 2021-22.
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