This season, sugar mills pays greater than Rs. 1,000,000 crores to sugarcane farmers. The present sugar season 2021-22 is predicted to supply 13% extra sugar than the earlier sugar season. According to revised estimates, sugar manufacturing within the present sugar season 2021-22 is predicted to be round 350 LMT (after discounting the diversion of 35 LMT of sugar to ethanol) versus an estimated home consumption of round 278 LMT. At the beginning of the sugar season 2021-22, there was roughly 85 LMT of carryover inventory.
Even after a probable export of round 95 LMT, the present sugar season’s closing inventory on the finish of September 2022 is predicted to be larger than 60 LMT. Sugar is on the market in adequate portions within the nation to satisfy home demand. As a outcome, sugar might be available, and home sugar costs are anticipated to stay steady at affordable ranges.
Under the chairmanship of Secretary (F&PD), Government of India, a digital assembly was held right now with the State Principal Secretaries (Sugar) and Cane Commissioners/Directors (Sugar) of the State Governments to evaluate the realm underneath cane cultivation, Sugarcane and Sugar Production for Sugar Season 2021-22 (October-September), in addition to export of sugar and diversion of sugar for ethanol manufacturing.
The authorities can be encouraging sugar mills to divert extra sugarcane to ethanol, which is mixed with gasoline and never solely serves as a inexperienced gasoline but in addition saves international forex on crude oil imports. Approximately 3.37 LMT, 9.26 LMT, and 22 LMT of sugar had been diverted to ethanol during the last three sugar seasons of 2018-19, 2019-20, and 2020-21, respectively.
During the present sugar season (2021-22), roughly 35 LMT of sugar is predicted to be diverted to ethanol, and by 2024-25, roughly 60 LMT of sugar is predicted to be diverted to ethanol, addressing the issue of extra sugarcane in addition to the difficulty of delayed cost as farmers would obtain well timed cost.
From Ethanol Supply Year (ESY) 2013-14 (Dec – Nov) to ESY 2020-21 (Dec – Nov), sugar mills/distilleries generated roughly 53,000 crore income from the sale of ethanol to Oil Marketing Companies (OMCs). Sugar mills are anticipated to generate greater than 18,000 crores in income from the sale of ethanol to OMCs in the course of the present fiscal yr 2021-22.
As of 18.4.2022, roughly 92,480 crores in cane dues had been paid to farmers within the earlier sugar season 2020-21, out of 92,938 crores in cane dues payable. As a outcome, 99.5 p.c of the earlier sugar season’s cane dues have been paid.
As of 18.4.2022, roughly 74,149 crores of complete cane dues payable of 91,468 crores had been paid to farmers, representing greater than 80% of complete cane dues payable. Sugar mills are anticipated to pay farmers greater than 1,00,000 crores in cane value funds in the course of the present sugar season. The elevated export of sugarcane and the conversion of sugarcane to ethanol have accelerated cane value funds to farmers.