White Cane Sugar

The sugar industry is an important agro-based industry that impacts the rural livelihood of about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills. Employment is also generated in various ancillary activities relating to transport, trade servicing of machinery, and supply of agriculture inputs. India is the second-largest producer of sugar in the world after Brazil and is also the largest consumer. Today Indian sugar industry’s annual output is worth approximately Rs.80,000 crores. There are 732 installed sugar factories in the country as of 31.07.2017, with sufficient crushing capacity to produce around 339 lakh MT of sugar. The capacity is roughly distributed equally between private sector units and cooperative sector units.

SUGARCANE PRICING POLICY –

With the amendment of the Sugarcane (Control) Order, 1966 on 22.10.2009 and the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‘Fair and Remunerative Price (FRP)’ of sugarcane for 2009-10 and subsequent sugar seasons. The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) after consulting the State Governments and associations of the sugar industry.

India had exported a record 7.2 million tonnes of sugar in the previous season, taking advantage of government subsidies for overseas sales. But this year, mills could export 7.5 million to 8 million tonnes without government incentives

The Indian Government has no plans to cap exports of sugar, though it will keep a tab on the volume getting shipped to ensure ample quantity is available during the off-season, official sources said on Friday.

The comments come on the heels of reports that the Centre plans to cap sugar exports at 80 lakh tonnes (lt).