India is world's biggest producer and consumer of sugar now

Amid ethanol blending push by the government, the country has emerged as the world's biggest producer and consumer of sugar, said a statement from Food Ministry. It is also the world's second largest exporter of sugar in 2021-22.  

India saw a record over 5000 lakh metric tonne (LMT) sugarcane production in 2021-22. As much as 35 LMT sugar had been diverted towards ethanol production.  

Source: PIB

With a view to address the problem of surplus sugar in the country, the Central Government has been encouraging sugar mills during the last few sugar seasons to divert surplus sugar to ethanol and is also facilitating mills to export surplus sugar thereby improving liquidity of sugar mills enabling them to clear cane price dues of farmers. 

This season, sugar has also seen the highest sugar exports of 109.8 LMT.  

Export of sugar and diversion of sugar to ethanol during the recent times had also helped in maintaining demand-supply balance and stabilizing domestic sugar prices. Details of sugar export and diversion of sugar to ethanol since sugar season 2018-19 (October-September) are as under: 

Currently, sugar mills/distilleries generate around ₹ 18,000 crore from sale of ethanol and 95% of all cane dues have been cleared by the millers by the end of the season. For Sugar Season 2020-21, more than 99.9% cane dues have been cleared.  

Source: PIB

"Export of sugar of 100 LMT till 1.08.2022 in the current sugar season has helped in improving liquidity of sugar mills by Rs. 33,000 Crore enabling them to clear cane price dues of farmers," the Ministry of Consumer Affairs, Food & Public Distribution had earlier said.