India’s sugar output in the 2021-22 season seen 13% higher year-on-year

India’s sugar production in the current 2021-22 season is expected to be 13% higher year on year, a government statement said.

“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 diversion of 35 LMT of sugar to ethanol) against estimated domestic consumption of about 278 LMT. There was carry-over stock of about 85 LMT at the beginning of the sugar season 2021-22,” the statement added.

Even after the 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, it said, adding that the availability of sugar in the country was sufficient to meet the domestic requirement.

“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.” said the statement from the Ministry of Consumer Affairs, Food & Public Distribution.

According to the statement, the government is also encouraging sugar mills to divert excess sugarcane to ethanol which is blended with petrol.

“In the last 3 sugar seasons 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,” the statement said.

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 ₹ 18,000 crore revenue is expected to be generated by sugar mills from the sale of ethanol to OMCs, the statement pointed out.

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