iGrain India - New Delhi. The Union Agriculture Ministry has reduced the sugarcane production target to 47 crore tonnes for the 2024-25 season (October-September).
In view of this, the government may need to intervene once again to maintain domestic sugar production at a reasonable level.
In the current season of 2023-24, the government has approved the use of limited quantity of sugarcane in ethanol production so that there is no major decline in sugar production.
Looking at this sugarcane production target of the Agriculture Ministry, it seems that the domestic production of sugar may fall further during the upcoming marketing season.
According to the available data, in the marketing season of 2022-23, 49.053 crore tonnes of sugarcane and about 330 lakh tonnes of sugar were produced, while sugarcane equivalent to about 40 lakh tonnes of sugar was used in ethanol production.
This had largely succeeded in achieving the target of blending ethanol in petrol. In the current marketing season of 2023-24, only 170 lakh tonnes of sugar equivalent sugarcane has been allowed to be used in ethanol production.
This can be further reduced if the sugarcane production decreases in the next season. There is a possibility of a decline in sugar production. A target of 20 percent ethanol blending in petrol has been set for the upcoming marketing season, but it seems difficult to achieve it.
The reduction in sugarcane production and supply availability is sure to have a direct impact on sugar production.
If the government intervenes, the matter can be better. At the end of the current season, the industry will have a high stock of sugar as the government is not in a mood to allow its export. This stock can protect in the next season.
There is limited fluctuation in the area sown under sugarcane and the government is also fully aware of it. The data of sugarcane area is presented along with the weekly sown area data of Kharif crops.
The government is aware of the entire situation and hence has adopted a practical approach in setting the target for sugarcane production.