Govt’s sugar policies ensured stable retail prices

New Delhi: The government's policies for the sugar sector have ensured stability in retail prices of sweetener in the domestic markets over the past few years and timely payment to sugarcane farmers, a senior official said on Tuesday.

Asserting that the policy of the government has remained consistent, the official said the policies need to be dynamic and flexible to meet the requirements of the country as sugarcane crop depends on agro-climatic conditions. "It is pertinent to note that sugar prices have been stable in India while global prices of sugar saw unprecedented volatility, reaching 13 years high in 2023," the official said. On the other hand, 99.9 per cent cane dues of farmers for 2022-23 season and earlier seasons have already been cleared. About 84 per cent cane dues of current 2023-24 season (October-September) are already cleared, the official said, adding that the cane dues to farmers are at a historic low.

With India being the world's largest consumer of sugar, the official said that the government's first priority is to ensure the availability of sufficient sugar at reasonable prices for consumers and also have sufficient closing stock at the end of the season. "Then, sugar is diverted for ethanol and only surplus sugar is allowed for exports," the official said, adding that exports are restricted from June 2022. "It is this government which has ensured consistent policies to safeguard interest of Indian farmers and consumers, and making the industry self-sufficient," the official said. Further, the official highlighted that the government's Ethanol Blended with Petrol (EBP) Programme has been a great success and has played a crucial role in bringing the sugar sector out of crisis. Ethanol production capacity from sugar/molasses in the country has crossed 900 crore litres which is more than 4 times the capacity 10 years back.

"Achievement of 12 per cent ethanol blending was unimaginable 10 years back with just 1.5 per cent blending taking India among the top countries in ethanol production and blending in petrol.”