August 7, 2023: The Government of India has effectively ensured a steady supply of sugar within the country, maintaining stable retail prices despite a notable surge in international sugar prices. The Centre’s proactive measures and strategic intervention over the past five years have not only maintained price equilibrium but have also fostered self-sufficiency in the Sugar Sector.
While global sugar prices hit a decade-high in April-May 2023, domestic sugar prices experienced a mere 3% nominal inflation. This increase is in line with the rise in the Fair & Remunerative Price (FRP) of sugarcane. Importantly, international sugar prices stand at almost 50% higher than those in India. The average retail price of sugar in the nation is approximately ₹43 per kg and is projected to remain stable within this range. Notably, the data reveals that there has been less than a 2% annual inflation in sugar prices within the country over the last decade, indicating the effectiveness of the government’s pragmatic policy interventions in maintaining stability.
The timely and well-thought-out government interventions have successfully steered the sugar sector away from crises. The sector’s strong fundamentals, along with abundant sugarcane and sugar production, have ensured accessibility to sugar for every Indian consumer.
During the ongoing Sugar Season (October to September) 2022-23, India is anticipated to produce around 330 LMT (Lakh Metric Tonnes) of sugar, accounting for approximately 43 LMT diverted for ethanol production. This results in a total sucrose production of about 373 LMT, marking the second-highest output in the past five years. Over the last decade, sugar production has significantly increased; however, consumption has not grown proportionally, resulting in sufficient stock availability to cater to unforeseen events.
As of July 2023, India possesses a sugar stock of approximately 108 LMT, ensuring ample supply to meet domestic demand for the remaining months of the ongoing Sugar Season 2022-23 and maintain an optimum stock of about 62 LMT at the season’s conclusion. This abundant supply guarantees access to reasonably priced sugar throughout the year for domestic consumers.
Additionally, the interests of sugarcane farmers have been addressed by assuring Fair & Remunerative prices and prompt payments by sugar mills. Sugar mills have cleared 99.9% of cane dues for the sugar seasons up to 2021-22, ensuring the financial well-being of the farmers. Even for the ongoing Sugar Season 2022-23, with payments surpassing ₹1.05 lakh crores, approximately 93% of cane dues have already been settled.
The Government of India’s proactive approach has safeguarded the interests of consumers, farmers, and sugar mills alike, through well-crafted policies, price stability, and prompt settlement of cane dues.
