In the current sugar season 2021-22, cane price payment of more than ₹1,00,000 crores would be made by sugar mills to farmers
Sugar production in the current sugar season 2021-22 is expected to be 13 per cent higher than the previous sugar season. As per the revised estimates production of sugar in the current sugar season, 2021-22 is estimated to be about 350 Lakh Metric Tonne (LMT) (after discounting the diversion of 35 LMT of sugar to ethanol) against estimated domestic consumption of about 278 LMT. There was a carry overstock of about 85 LMT at the beginning of the sugar season 2021-22.
Even after likely export of about 95 LMT, the closing stock for the current sugar season at the end of September 2022 is likely to be more than 60 LMT. The availability of sugar in the country is sufficient to meet domestic requirements. As such, there will be smooth availability of sugar and the sugar prices in the domestic market are expected to remain stable at reasonable levels.
A virtual meeting in this regard was held under the chairmanship of Secretary (F&PD), Government of India with the State Principal Secretaries (Sugar) and Cane Commissioners/Directors (Sugar) of the State Governments to assess the area under cane cultivation, Sugarcane and Sugar Production for Sugar Season 2021-22 (October-September) as well as export of sugar and diversion of sugar for the production of ethanol.
The government is also encouraging sugar mills to divert excess sugarcane to ethanol which is blended with petrol, which not only serves as a green fuel but also saves foreign exchange on account of crude oil import. In the last three sugar season 2018-19, 2019-20 and 2020-21 about 3.37 LMT, 9.26 LMT and 22 LMT of sugar have been diverted to ethanol. In the current sugar season 2021-22, about 35 LMT of sugar is estimated to be diverted & by 2024-25 about 60 LMT of sugar is targeted to be diverted to ethanol, which would address the problem of excess sugarcane as well as delayed payment issue as farmers would get timely payment.
From Ethanol Supply Year (ESY) 2013-14 (Dec – Nov) to ESY 2020-21, about ₹53,000 crore revenue has been generated by sugar mills/distilleries from the sale of ethanol to Oil Marketing Companies (OMCs). In the current ESY 2021-22, more than Rs 18,000 crore revenue is expected to be generated by sugar mills from the sale of ethanol to OMCs.
In the previous sugar season 2020-21, out of cane dues payable of Rs 92,938 crores, about Rs 92,480 crores cane dues have been paid to farmers, as on 18.4.2022. Thus, 99.5 per cent of cane dues of the previous sugar season have been cleared. In the current sugar season 2021-22, out of total cane dues payable of Rs 91,468 crores, about Rs 74,149 crores have been paid to farmers as on 18.4.2022 which is more than 80 per cent. It is expected that in the current sugar season, cane price payment of more than Rs 1,00,000 crores would be made by sugar mills to farmers. An increase in export and diversion of sugarcane to ethanol has expedited cane price payments to farmers.
