Tag Archives: Sugar

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

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  • India emerges as the world’s largest producer and consumer of sugar and world’s 2nd largest exporter of sugar.
  • Records over 5000 LMT sugarcane produced in sugar season 2021-22; 35 LMT sugar used to ethanol production and 359 LMT sugar produced by sugar mills in the season.
  • Records highest sugar exports of 109.8 LMT.
  • Sugar mills/distilleries generate ₹ 18,000 crore from sale of ethanol.
  • 95% of all cane dues cleared by the millers by end of the season; for Sugar Season 2020-21, more than 99.9% cane dues have been cleared.

In Sugar Season (Oct-Sep) 2021-22, a record of 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 LMT of sugar (Sucrose). Out of this, 35 LMT sugar was diverted to ethanol production and 359 LMT sugar was produced by sugar mills. With this, India has emerged as the world’s largest producer and consumer of sugar as well as the world’s 2nd largest exporter of sugar.

The season 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.

Another shining highlight of the season is the highest exports of about 109.8 LMT that too with no financial assistance which was being extended upto 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 crores for the country.

 

The success story of sugar industry is the outcome of synchronous and collaborative efforts of Central and State Governments, farmers, sugar mills, ethanol distilleries with very supportive overall ecosystem for business in the country. Timely Government interventions since last 5 years have 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 SS 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 Government of India. Thus, cane dues at the end of sugar season are less than ₹ 6,000 crore indicating that 95% of cane dues have already been cleared. It is also noteworthy that for SS 2020-21, more than 99.9% cane dues are cleared.

 

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.

 

 

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, revenue of about ₹ 18,000 crore has been made by sugar mills/distilleries from sale of ethanol which has also played its role in early clearance of cane dues of farmers. 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. In new season, the diversion of sugar to ethanol is expected to increase from 35 LMT to 50 LMT which would generate revenue for sugar mills amounting to about ₹ 25,000 crores.

There is an optimum closing balance of 60 LMT of sugar which is essential to meet domestic requirements for 2.5 months. The diversion of sugar to ethanol and exports led to unlocking of value chain of the whole industry as well as improved financial conditions of sugar mills leading to more optional mills in ensuing season.

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Obesity in Children on Rise

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Junk Food is a term used for food containing high levels of calories from sugar or fat with little fiber, protein, vitamins or minerals. These foods lead to a rapid increase in blood sugar levels (high glycemic index) which forces the body to produce high levels of insulin to counter the rising blood sugar.

As reported by Indian Council of Medical Research (ICMR), development of obesity is multi-factorial and eating of junk and processed food is one of them. Childhood obesity is a risk factor of developing heart diseases and diabetes in later life.

The results available from 15 States/UTs of an ongoing ICMR India Diabetes (ICMR-INDIAB) Study on the prevalence of diabetes indicate overall prevalence of Diabetes varying from 4% to 13%. According to the Report of National Commission on Macroeconomics and Health, there were 641 lakh cases of Cardiovascular Diseases (CVDs) in India in the year 2015.

Ministry of Women and Child Development had constituted a Working Group on addressing consumption of foods High in Fat, Salt and Sugar (HFSS) and promotion of healthy snacks in schools of India, which has given its report.

The Food Safety and Standards Authority of India (FSSAI) constituted an Expert Group on Salt, Sugar and Fat. The Expert Group prepared a draft report on consumption of these items and its health impacts among Indian population and recommendations on healthy dietary intake of these items. While preparing the above report, Expert Group has considered WHO guidelines on ‘Sugar Intake for Adults and Children regarding the adverse impact of high sugar in foods.

ICMR, National Institute of Nutrition (NIN) and other institutions carry out research and studies related to food and healthy diet. Apart from this, the consumers are made aware of food safety through consumer awareness programmes launched jointly by the Department of Consumer Affairs and the Food Safety and Standards Authority of India (FSSAI) which also includes advertisements in different media, campaigns, educational booklets, information on FSSAI website and Mass awareness campaigns.

The Minister of State (Health and Family Welfare), Smt Anupriya Patel stated this in a written reply in the Lok Sabha here today.

Regulating Contents of Sugar and Salt in Food and Beverages

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Increased consumption of soft drinks, colas and other canned foods, contribute to obesity which is risk factor of Hypertension, Cardio-vascular problems, Diabetes, Stoke, etc. Further, as per sub-regulation 2.2.2.3(ii) of the Food Safety and Standards (Packaging and Labelling) Regulations, 2011, quantity of sugar per 100g or 100 ml or per serving of the products, is required to be specified on the label. However, there is no proposal to fix quantity of sugar in aerated drinks and energy tonics, under consideration in the Food Safety and Standards Authority of India (FSSAI).

Strengthening of Food and Drugs Administration at Central and State levels is a continuous process. FSSAI has rolled out a scheme for strengthening of food testing system in the Country with an outlay of Rs. 481.95 Crore. Further, the Government has also approved a proposal for strengthening of drug regulatory system in the country, both at the Central and State levels at a cost of Rs.1750 cr. Out of this, Rs.900 cr. are for strengthening of Central regulatory structure, while Rs.850 cr. have been approved as the Central Government’s contribution for upgrading and strengthening the States’ Drug Regulatory System.

The Minister of State (Health and Family Welfare), Sh Faggan Singh Kulaste stated this in a written reply in the Rajya Sabha here today.