New Delhi, August 22: Amid ongoing discussions about the surge in sugar prices across the country, experts from the agriculture and sugar industries have clarified that the primary reason is not the diversion of sugar for ethanol production, but rather a decline in sugarcane production and recovery rates. They emphasized that the government continuously monitors the balance between sugar, ethanol, and exports, prioritizing consumer needs.
Professor Narendra Mohan, former director of the National Sugar Institute in Kanpur, stated in an interview that the recent increase in sugar prices is somewhat unexpected, but it cannot be directly attributed to ethanol production. He noted that the government ensures sufficient sugar availability for domestic needs when assessing annual production.
According to him, the country requires approximately 28 million tons of sugar annually. Only after meeting this demand is additional sugar permitted for ethanol production or export. He mentioned that around 3.1 million tons of sugar has been used for ethanol production this year, with about 700,000 tons exported. Despite this, there is a sufficient buffer stock in the country.
Professor Mohan added, “This year, the country produced about 30.6 million tons of sugar, and there was also carry-over stock from the previous year. Under normal circumstances, India maintains a buffer stock of 5 million tons or more to prevent supply disruptions in unexpected situations. Therefore, attributing the rise in sugar prices solely to ethanol diversion is not justified.”
He pointed out that ethanol has proven to be a “game changer” for the Indian sugar industry. Previously, when sugar production exceeded demand, prices would fall, leading to losses for sugar mills and affecting farmers’ payments.
He explained that while there was an option to export excess sugar, global competition and international prices did not always make it profitable. Consequently, the government adopted a policy to utilize surplus sugar for ethanol production, stabilizing the sugar industry and promoting energy security, reducing petroleum imports, and encouraging clean fuel.
The government continuously reviews production conditions to determine how much sugar can be diverted for ethanol. If there is a risk of reduced production, the government can control both diversion and exports.
Meanwhile, Dr. Hariom, an agricultural scientist from the Sugarcane Research Department at Bihar Agricultural University, stated that a significant factor in the current situation is the decline in quality sugarcane production. He noted that states like Maharashtra and Tamil Nadu have longer sugarcane crop durations, resulting in higher sugar recovery, while northern India has shorter harvesting and processing periods.
He mentioned that northern India is currently in a “lean season” for sugarcane processing. As the main harvesting and processing season begins, sugar production is expected to increase, leading to better supply and reduced pressure on prices.
Dr. Hariom further explained that most farmers in northern India sow sugarcane around April-May, with the crop ready in about 10 to 11 months. In contrast, farmers in Maharashtra plant sugarcane in October-November and allow it to remain in the field for 13 to 14 months. This extended period allows for greater sugar accumulation and better recovery rates.
In Tamil Nadu, sugarcane is planted during July-August, with a crop duration extending up to 18 months. This is why Tamil Nadu is recognized for having the highest productivity per hectare in the country. Meanwhile, Maharashtra’s sugar recovery rates reach about 13-14%, among the best in the nation.
Dr. Hariom suggested that if farmers in northern India start sugarcane cultivation after harvesting rice in October-November and also plant intermediate crops like wheat, mustard, lentils, chickpeas, or vegetables, they could gain additional income and improve sugarcane quality.
He also noted that research conducted by Bihar Agricultural University found that growing vegetables like bottle gourd, bitter gourd, ridge gourd, okra, and mung beans alongside sugarcane does not negatively impact sugarcane production. Instead, it benefits farmers with additional production and income.
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