19 JAN , Delhi: The year 2021-22 has proven to be a watershed season for Indian Sugar Sector. All records of sugarcane production, sugar production, sugar exports, cane procured, cane dues paid and ethanol production were made during the season. During the season, record more than 5000 Lakh Metric Tons (LMT) sugarcane was produced in the country out of which about 3574 LMT of sugarcane was crushed by sugar mills to produce about 394 Lakh MT of sugar (Sucrose) out of which 36 lakh MT sugar was diverted to ethanol production and 359 LMT sugar was produced by sugar mills.
India has emerged as the world’s largest producer and consumer of sugar as well as the world’s 2nd largest exporter of sugar after Brazil, in Sugar Season (Oct-Sep) 2021-22.
In every sugar season, production of sugar is around 320-360 Lakh Metric Tons (LMT) as against the domestic consumption of 260-280 LMT which results in huge carry over stock of sugar with mills. Due to excess availability of sugar in the country, the ex-mill prices of sugar remain subdued resulting in cash loss to sugar mills. This excess stock of about 60-80 LMT also leads to blockage of funds & affects the liquidity of sugar mills resulting in accumulation of cane price arrears.
