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Agriculture & Food Management 241 Sugar Sector 7.14 Significance of sugarcane and sugar industry for India’s economy can be gauged from the fact that it is the country’s second largest agro-based industry, next to cotton. It impacts the livelihood of over 5 crore farmers and their dependents. India is the largest consumer and the second-largest producer of sugar in the world. Average annual production of sugarcane is around 35.5 crore tonnes which is used to produce around 3 crore tonnes of sugar. The domestic consumption is estimated to be around 2.6 crore tonnes in 2020-21. Over the years, India has become a sugar surplus nation as reflected from the trend of sugar production and consumption in Figure 10. Since 2010-11, production has outstripped consumption except in 2016-17. 7.15 This has been possible because of various measures undertaken by Government. For example, the interest of the farmers is protected by Fair and Remunerative Price (FRP) which 2 has doubled in a span of ten years (Figure 11). In addition, some state governments announce State Advised Price (SAP) at levels higher than FRP. Additionally, sugar mills that buy sugarcane are mandated to purchase crops from farmers within a specified radius known as the Cane Reservation Area. In this way, sugarcane farmers are insured and protected against price risk. Figure 10: Production and Consumption Levels of Sugar (Million Tonnes) Source: Based on data of CACP Report on Sugarcane. 7.16 Moreover, in order to handle the surplus production and enhance liquidity of mills, the Government has taken various steps such as incentivising sugar mills to divert excess sugar cane/sugar to ethanol production, providing financial assistance for transport to sugar mills to facilitate export of sugar, etc. About 70 LMT of sugar has been exported in sugar season 2020- 21 in comparison to 59.60 LMT of sugar export in sugar season 2019-20. Further, contracts of about 30 LMT for export of sugar have already been signed in the sugar season 2021-22. Moreover, in the past four sugar seasons ending 2020-21, revenue of about ₹ 35000 crore has been generated by sugar mills/distilleries from sale of ethanol to Oil Marketing Companies which has helped in clearing cane price arrears of farmers.. 2. FRP is the minimum price at which sugarcane is to be purchased by sugar mills from farmers.
FAQs
Brazil is not only the largest sugar producer in the world but is also the biggest sugar exporter. With a sugar production expected to surpass 41m tonnes this season, consumption is only around 10m tonnes.
What is the sugar surplus in India? ›
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the apex body in the sugar and bio-energy industry in the country, predicts a significant sugar surplus of up to 36 lakh tonne for the current season.
What is an economic survey in India? ›
The Economic Survey of India is an annual document of the Ministry of Finance, Government of India. The Department of Economic Affairs, Ministry of Finance presents the Survey in the Parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser of India.
What is the GDP growth rate of India 2021 22 Economic Survey? ›
In 2021-22, India's real GDP is estimated to grow by 9.2% after contracting by 7.3% in 2020-21. Inflation: Consumer Price Index (CPI) based inflation was 6.2% in 2020-21. The Survey observed that this was due to supply chain disruptions from COVID-19 restrictions.
Where does the U.S. get most of its sugar? ›
Sugar beets account for 55% of the total sugar produced in the U.S., and sugar cane accounts for the remaining 45%.
Who is the biggest buyer of sugar? ›
China is traditionally the most important sugar importer; however, The USA beat China in 2023 and emerged as the largest sugar importer with sugar imports accounting for $13.85 billion.
Why did India ban export of sugar? ›
New Delhi plans to prohibit mills from exporting sugar when supplies from Brazil, the world's top producer and supplier of the sweetener, are expected to drop because of a drought in the South American nation. "In the current crop scenario, there is no space for sugar exports," said one of the government sources.
Why does India consume so much sugar? ›
The reason why Indians end up eating so much sugar is they are also consuming traditional Indian sweets along with sugar-sweetened beverages and Indian beverages like sweetened buttermilk etc, which are very high in calories and glycemic load (a measure that estimates how much the food will raise a person's blood ...
What is India's sugar problem? ›
In 2022, India emerged as the world's largest consumer of sugar, a rather dubious distinction1. A whopping 29.5 million metric tons of sugar was consumed by Indians collectively in one year2!!! It's no surprise then, that more than a 100 million Indians live with diabetes-as per ICMR-INDIAB data3.
Who is called the father of economics? ›
Adam Smith was an 18th-century philosopher renowned as the father of modern economics, and a major proponent of laissez-faire (non-interference from government) economic policies.
“India's GDP took a big leap on Leap Day in 2024: The country's remarkable growth rate of 8.4% in the third quarter of the fiscal year 2024 surpassed all expectations, as market analysts had penciled in a slower growth this quarter, between 6.6% and 7.2%.
What is the Pink economic Survey of India? ›
The Economic Survey 2017-18 is printed in pink colour to underline the importance of gender issues to the economy. The survey points out that the North-Eastern states (a model for the rest of the country) consistently out-perform others.
What is the GDP growth forecast for India? ›
' For the year 2025, the IMF projected India's growth rate at 6.5 per cent. It attributed robustness and strength in domestic demand and a rising working-age population behind its growth projections. Notably, India's GDP expanded at 8.2 percent in 2023-24.
What percentage of employment is in the primary sector in India? ›
The largest proportion of work force in India is engaged in the primary sector. This sector employs 50-60% of the population. Primary sector consists of agriculture. It is also known as raw material sector.
What is the status of primary sector in India? ›
According to the Central Statistics Office (CSO), the primary sector contributed around 20.2% to India's GDP in 2020-21, which amounted to Rs. 36.08 lakh crore. This includes the value of crops, livestock, forestry, fishing, and mining products.
Who produced the most sugar in the US? ›
Florida is the largest cane-producing region in the United States.
Where does the majority of sugar come from? ›
Currently, about 110 countries produce sugar from either cane or beet, and eight countries produce sugar from both cane and beet. Sugarcane, on average, accounts for nearly 80% of global sugar production.
Is Cuba the largest producer of sugar? ›
Cuba remained unchallenged as the world's largest sugar producer until the 1960s, when the Soviet Union, Brazil, and India increased their production to comparable levels. However, whereas most of the sugar in those countries was consumed domestically, Cuba exported up to 90% of its crop.
