The Union Minister for Consumer Affairs, Food and Public Distribution inaugurated the 64th Council Meeting of International Sugar Organization (ISO) at Bharat Mandapam (New Delhi).A workshop on “Sugar and Biofuels-Emerging Vistas” was organised during the meeting which was attended by international delegates, Indian sugar mill officials, industry associations and technical experts.It discussed the future of global sugar sector, biofuels, sustainability and role of farmers.India is the largest consumer of sugar in the world and the second largest producer of sugar after Brazil.Sugarcane is the second most important feedstock for ethanol production in the world (after corn).
How are sugarcane prices decided
- The price of sugarcane is decided jointly by the Central Government and State Governments. Central Government: Fair and Remunerative Price
- The Central Government announces the FRP which is determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP), which is announced by the Cabinet Committee on Economic Affairs (CCEA).
- The CCEA is chaired by the Prime Minister of India.
- The FRP is based on the Rangarajan Committee report on restructuring of the sugarcane industry.
State Government: State Advised Price
- The SAP is announced by the governments of the major sugarcane producing states.
- The SAP is usually higher than the FRP.
- The price is calculated by experts who make a complete economic calculation of the crop through input costs and then make suggestions to the government.
Benefits of increasing sugar production
- Sugar production generates several by-products, such as molasses, bagasse and press mud, which can be used to produce other products such as ethanol, paper and bio-fertilizers.
- Sugar mills can convert surplus sugarcane into ethanol, which is blended with petrol, which not only serves as a green fuel but also saves foreign exchange on account of crude oil imports.
- The Government of India has set a target of 10% blending of fuel grade ethanol with petrol by 2022 and 20% blending by 2025.
- India achieved its target of 10% blending on an average across the country five months ahead of the targeted deadline of November 2022.
- Cultivation of sugarcane provides farmers an opportunity to diversify their agricultural activities and increase income.
- Sugarcane cultivation can be integrated with other crops such as vegetables, fruits and spices to promote crop diversification. This can improve soil health, reduce pest and disease pressure, and also improve crop yields.
Status of Sugarcane Sector in India
- Sugar industry is an important agro-based industry that affects the rural livelihoods of about 50 million sugarcane farmers and about 5 lakh workers directly employed in sugar mills.
- Sugar industry is the second largest agro-based industry in India after cotton.
Geographical Conditions for Growth of Sugarcane
- Temperature: Between 21-27 °C with warm and humid climate.
- Rainfall: About 75-100 cm.
- Soil Type: Deep rich loamy soil.
- Top sugarcane producing states: Maharashtra > Uttar Pradesh > Karnataka.
Status of Sugarcane Sector
- India has emerged as the largest producer and consumer of sugar in the world and the second largest exporter in the world.
- According to the Indian Sugar Mills Association (ISMA), India’s sugar production increased by 3.69% to 12.07 million tonnes during the October-December quarter of 2022.
- It was 11.64 million tonnes during the same period last year.
- After diversion for ethanol production, total sugar production increased to 193.5 lakh tonnes by January 2023 from 187.1 lakh tonnes in the year-ago period.
Scheme
- Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU)
ISO
- ISO is a body affiliated to the United Nations (UN) headquartered in London.
- It has 85 member countries which contribute 90% to the total global sugar production and its function is to bring together major sugar producers, consumers and trading countries.
- Many ISO member countries are also part of the Global Biofuel Alliance and this can serve as another platform to expand the alliance and promote biofuels.