It is reported by Business Standard.

In 2021-22 marketing year, the food ministry said that "India has emerged as the world's largest producer and consumer of sugar as well as the world's 2nd largest exporter of sugar".

A record of more than 500 mln tonnes sugarcane was produced in the country during 2021-22, out of which about 357,4 mln tonnes were crushed by sugar mills to produce about 39,4 mln tones of sugar (sucrose).

Out of this, 3,5 mln tonnes of sugar was diverted to ethanol production and 35,9 mln tonnes of sugar was produced by sugar mills.

The season has proven to be a watershed season for Indian sugar sector. India achieved the highest exports of about 10,98 mln tonnes, without any financial assistance from the government.

In May, the government had allowed exports of 10 mln tonnes of sugar, but later permitted another 1,2 mln tonnes. This took the total export quota for 2021-22 marketing year to 11,2 mln tonnes. Mills were able to ship 10,98 mln tonnes.

India's sugar exports stood at 7 mln tonnes in 2020-21 marketing year, 5,9 mln tonnes in 2019-20 and 3,8 mln tonnes in 2018-19.

The government has been encouraging sugar mills to divert sugar to ethanol and export surplus sugar so that mills can pay farmers on time.

«Growth of ethanol as biofuel sector in last 5 years has amply supported the sugar sector as use of sugar to ethanol has led to better financial positions of sugar mills due to faster payments, reduced working capital requirements and less blockage of funds due to less surplus sugar with mills», — the statement said.

Ethanol production capacity of molasses/sugar-based distilleries has increased to 6,05 mlrd litres per annum and the progress is still continuing to meet targets of 20% blending by 2025 under Ethanol Blending with Petrol (EBP) Programme.

«In new season, the diversion of sugar to ethanol is expected to increase from 3,5 mln tonnes to 5 mln tonnes, which would generate revenue for sugar mills amounting to about Rs 250 mlrd», — the ministry projected.

The closing stock of sugar stood at 6 mln tonnes which is essential to meet domestic requirements for 2.5 months.