The sugar mills in India are expected to produce a total of 35.8 Million Tonnes of sugar in the sugar season 2021-22, 14.7% more when compared to 31.2 million Tonnes produced during the same period in the 2020-21 season, whereas sugarcane consumption is pegged at 27.2 Million Tonnes. This growth was accounted mainly by high availability of sugarcane in the country.
In FY 2021-22, 522 sugar mills were involved in crushing operations throughout the country, compared to 506 mills in the previous season. Around 3.5 Million Tonnes sugar diverted towards ethanol production.
It is estimated that a larger quantity of cane juice / syrup and B-molasses will be diverted to ethanol with higher availability of sugarcane and surplus sugar production.
India is expected to retain its position as the largest consumer and second largest producer of sugar in the world. Over the last 2 years, India has reached a new production historically high level above consumption.
The fixing of sugarcane prices by the government to support farmer incomes, coupled with the fixed minimum domestic sugar prices and remunerative ethanol blending programme, catalysed the country’s production to reach new benchmarks.
Promoted by the government, Indian states have increased production of first generation ethanol from feed stocks such as cereals like rice, wheat, barley, corn, sorghum sugarcane and sugar beet under the modified ethanol generation scheme by the government. This would eventually help the government in getting closer to achieving the goal of blending 20% ethanol in petrol by 2025
