Daily Current Affairs Update: 4 FEB 2023

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Sugar Exports

  • According to the Indian Sugar Mills Association (ISMA), sugar mills in India have entered into contracts to export 55 lakh tonnes of sweetener.
  • The government has allowed sugar mills to export 60 lakh tonnes of sugar till May in the 2022-23 marketing year (October-September).

What is the Present Status of the Sugar Industry in India?

  • Sugar industry is an important agro-based industry that impacts the rural livelihood of about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills.
  • In (Oct-Sep) 2021-22 India emerges as the world’s largest producer and consumer of sugar and world’s 2nd 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

  • Impressive Sugar Season (Sep-Oct): All records of sugarcane production, sugar production, sugar exports, cane procured.
  • High exports: The exports were the highest at about 109.8 LMT without any financial assistance.
  • Indian Government Policy Initiatives: Timely government initiatives in the last 5 years have taken them out of financial distress in 2018-19 to the stage of self-sufficiency in 2021-22.
  • Encouraging Ethanol Production: The Government has encouraged sugar mills to divert sugar to ethanol
  • Ethanol Blending with Petrol (EBP) Programme: The National Policy on Biofuels 2018, provides an indicative target of 20% ethanol blending under the Ethanol Blended Petrol (EBP) Programme by 2025.
  • Fair and Remunerative Price (FRP): The FRP is the minimum price that sugar mills have to pay to sugarcane farmers for procurement of sugarcane.
  • It is determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders.

Problems Associated

    • Competition from Other Sweeteners
    • Lack of Modern Technology
    • Environmental Impact
    • Political interference

What is the Indian Sugar Mills Association (ISMA)?

  • Indian Sugar Mills Association (ISMA) is a premier sugar organisation in India.
  • It is the interface between the Government and sugar industry (both private and public sugar mills) in the country.
  • The prime objective is to ensure that the functioning and interest of both the private and public sugar mills in the country are safeguarded through conducive and growth-oriented policies of the Government.

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