Sugar

Sugar is the country’s second largest agro-based industry, next to cotton. Sugarcane and sugar industry together impact the livelihood of over 5 crore farmers and their dependents involved in cultivating sugarcane in an area of almost 50 lakh hectares. India is the largest consumer and the second-largest producer of sugar in the world.

Sugar: A Major Crop & the Indian Industry

Brazil has historically led the world in sugar production. However, of late, Brazil has been diverting a large proportion of its sugarcane to the production of ethanol, and soon India will take over the position as the world’s leading sugar producer. India’s average annual production of sugarcane is 35.5 crore tonnes, with sugar production of around 3 crore tonnes.

Being the largest consumer of sugar, the domestic consumption of India is estimated to be at around 2.6 crore tonnes in the current financial year.

It is also important to note that the sugarcane crop is sturdy and can withstand fluctuations in weather. Compared to many other crops, cane farmers have to put in little effort by way of inputs and man hours in growing their crops and therefore, it is often considered the ‘lazy crop’.

Statewise Production of Sugarcane in India

Statewise Cane Crushed by Sugar Factories in India

Cane: Acreage, Production, Yield, Crushed, Sugar: Production, Recovery, Duration, Molasses

Statewise Sugar Production in India

Statement showing Sugar Stocks, Production, Consumption and Export of Sugar

Standing Strong As a Pillar for Rural Livelihood

The sugar industry plays a significant role in India’s agricultural economy— sugarcane and sugar have been and continue to be important commodities of trade and livelihood. Today, the industry is a vital cog in India’s rural development as the country’s second largest agro-based industry, next only to cotton. It directly or indirectly impacts the livelihoods of over 5 crore farmers and their dependents,involved in cultivating sugarcane in an area of almost 50 lakh hectares. In addition, 5 lakh workers in sugar mills and another 10 lakh workers, through indirect means, draw their livelihoods from the sugar industry.

Government Assistance to Uplift the Sugar Industry

Over the past several years, the Government of India has taken numerous measures to help the sugarcane producers and sugar industry. These include the following:

Aided sugar mills at Rs 5.50/quintal of cane crushed for sugar season 2017–18 to offset the cost of cane amounting to about Rs 1540 crore. In 2018–19 SS further assistance to sugar mills was provided at Rs 13.88/quintal amounting to a total of Rs 4163 crore.

Extended soft loans of Rs 6,139 crore in 2017–18 SS through banks to the mills for setting up new distilleries and installation of incineration boilers to augment ethanol production capacity for which the Government will bear interest subvention of ₹1332 crore. A further extension of soft loans in 2018–19 SS of about Rs 10,540 crore was provided for which interest subvention was at 7% for one year, amounting to Rs 738 crore.

To prevent cash loss and to facilitate sugar mills to clear cane dues of farmers in time, the Government has fixed a minimum selling price of sugar at Rs 29/kg for sale at factory gate in domestic market, below which no sugar mill can sell sugar (since raised to Rs 31/kg).

Notified the new National Policy on Biofuels, 2018, under which sugarcane juice has been allowed for the production of ethanol. Further, the Government has fixed the remunerative price of ethanol produced from C-Heavy molasses and B- Heavy molasses/sugarcane juice separately for supply under EBP during ensuing ethanol season 2018–19.

Assistance to sugar mills was extended for defraying expenditure towards internal transport, freight, freight and other charges to facilitate export of sugar. In 2018–19 SS this assistance amount to Rs 1375 crore.

Acts & Orders

The Indian sugar industry is governed by several key acts and orders. The Essential Commodities Act, 1955, and the Sugar Development Fund Act, 1982, along with its amendments, support the industry's development and regulation. The Jute Packing Materials Act, 1987, and the Food Safety and Standards Act, 2006, ensure safe packaging and food standards. Additionally, the Competition Act, 2002, and subsequent amendments maintain fair competition. Orders such as the Sugarcane (Control) Order, 1966, and the Sugar (Price Determination) Orders regulate pricing and supply, ensuring stability and fairness in the market.

Campaigns

Drip Irrigation Campaign

The Drip Irrigation Campaign promotes the adoption of drip irrigation in sugarcane cultivation, especially in Maharashtra and South India, to save 40%-50% of water and increase yields by 30%. This initiative involves sustained awareness campaigns and incentive mechanisms, including concessional access to infrastructure, to encourage farmers to adopt drip irrigation. Additionally, various agricultural schemes that promote drip irrigation will be leveraged to support this purpose.

Cheeni Sa Meetha India

ISMA launched a campaign #CheeniSaMeethaIndia to ensure that 'cheeni,' 'sugar,' and 'sakhare' receive their well-deserved recognition. For years, sugar has been painted as the 'villain,' leading many individuals to experience guilt over their sugar consumption. With the Cheeni Sa Meetha India campaign ISMA brings a more equitable and enlightening comprehension of sugar, as opposed to the threat surrounding it, emphasising the cultural significance of sugar and that consuming moderate amounts of it can lead to an active lifestyle.