Ethanol production capacities increased from 421 cr litrs to 867 cr litrs in last eight years
Export of sugar in current sugar season 2021-22 is 15 times of export as compared to export in sugar season 2017-18. The major importing countries are Indonesia, Afghanistan, Sri Lanka, Bangladesh, the UAE, Malaysia and African Countries.
In sugar seasons 2017-18, 2018-19 & 2019-20, about 6.2 LMT, 38 LMT & 59.60 LMT of sugar was exported. In sugar season 2020-21 against target of 60 LMT about 70 LMT have been exported. About Rs 14,456 Cr released to sugar mills in past five years to facilitate export of sugar and Rs 2000 cr as carrying cost for maintaining buffer stock. Since, the international prices of sugar are in uptrend & stable, so, contracts for export of about 90 LMT have been signed to export sugar in current sugar season 2021-22 & that too without announcement of any export subsidy; out of which 75 LMT have been exported till May 18, 2022.
In the current ESY 2021-22, about 186 cr ltrs ethanol have been blended with petrol till 08.05.2022 thereby achieving 9.9 per cent blending. It is expected that in current ethanol supply year 2021-22, we will be achieving 10 per cent blending target.
In sugar seasons 2018-19 , 2019-20 & 2020-21 about 3.37, 9.26 & 22 LMT of sugar was diverted to ethanol. In sugar season 2021-22, it is likely that about 35 LMT of excess sugar will be diverted to ethanol. By 2025, it is targeted to divert more than 60 LMT of excess sugar to ethanol, which would solve the problem of high inventories of sugar, improve liquidity of mills there by help in timely payment of cane dues of farmers.
In the sugar season 2021-22, sugarcane of worth Rs 1,10,000 crore is likely to be purchased by sugar mills which is at all time high level and is the second highest next to the procurement of paddy crop at Minimum Support Price.
For the current sugar season 2021-22, out of total cane dues payable of Rs 1,06,849 cr, about Rs. 89,553 cr was paid and only Rs 17,296 cr are pending as on 17.05.2022; thus 84 per cent of cane dues have been paid. The domestic ex-mill prices of sugar are also now stable & are in the range of Rs 32 -35/ kg which would enable sugar mills to make timely payment of cane dues to farmers in current sugar season 2021-22. The average retail price of sugar in the country is about Rs 41.50/ kg and is likely to remain in the range of Rs 40-43/ kg in coming months which is not a cause of worry.
