exporter of sugar.

Article Title: exporter of sugar.

06-10-2022

Economy Prelims Plus

Why is in news? India emerges as largest producer of sugar in world

India has emerged as the world’s largest producer and consumer and second largest exporter of sugar.

In Sugar Season 2021-22, a record of more than five thousand lakh metric tons of sugarcane was produced in the country.

Out of this, 35 lakh metric ton sugar was diverted to ethanol production and 359 lakh metric ton of sugar was produced by sugar mills.

Consumer Affairs, Food, and Public Distribution Ministry said, the season has proven to be a watershed season for the Indian Sugar Sector. Records highest sugar exports of over 109 lakh metric tons have been registered.

The Ministry said, supportive international prices and Central government Policy led to this feat of the Indian Sugar Industry. These exports earned foreign currency of about 40 thousand crore rupees.

It said, the success story of the sugar industry is the outcome of synchronous and collaborative efforts of Central and State Governments, farmers, and sugar mills with a supportive overall ecosystem for business in the country.

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.

The largest producer of sugarcane in India is Uttar Pradesh, which produced over 177 million tonnes of sugarcane in 2021.

Sugar industries in India are located in Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Punjab, Haryana and Madhya Pradesh. 60% of mills are in Uttar Pradesh and Bihar.

About 80% of the world's sugar is produced from cane grown in tropical and subtropical climates. The remaining 20% comes from sugar beets, which are grown mostly in the temperate zones of the Northern Hemisphere.

The largest sugar-producing countries are Brazil, India, Thailand, China, and the United States.

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