Govt's sugar policies ensured stable retail prices, timely payment to farmers: Official

New Delhi: The government's policies for the sugar sector have ensured stability in retail prices of sweeteners 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 of cane dues of farmers for the 2022-23 season and earlier seasons have already been cleared. About 84 per cent of cane dues of the 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 the interest of Indian farmers and consumers, and make 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. India is poised to achieve 20 per cent ethanol blending in 2025," the official said.

The official added that the Government of India is committed to balancing the interests of sugarcane farmers, consumers and industry in the national interest.

Recently, the Indian Sugar Mills Association (ISMA) has pegged sugar production at around 323 lakh tonnes for the 2023-24 marketing year after the diversion of 17 lakh tonnes towards ethanol manufacturing via sugarcane juice/B-heavy molasses.

The net sugar production stood at 328.2 lakh tonnes during the 2022-23 marketing year with a diversion of 38 lakh tonnes of sweetener for ethanol-making from sugarcane juice and B-heavy molasses.

Earlier this month, ISMA revised its estimates for gross production of the sweetener upwards by 9.5 lakh tonnes to 340 lakh tonnes in the marketing year ending September.

The gross sugar output stood at 366.2 lakh tonnes in the previous year.

Last month, the central government decided to hike the Fair and Remunerative Price (FRP) -- the minimum price that mills have to pay to sugarcane growers -- by Rs 25 to Rs 340 per quintal for the 2024-25 season starting October 2024.