Ashi SharmaAIR 12 · CSE 2024 · 237 wordsTheir whole copy
Opening
India is the leading producer of sugar globally with the sugar industry being concentrated in 2 major pockets in north & peninsular India.
Factors Contributing towards regional disparity
Body · points
Strong cooperative ecosystem in south-western states ensures access to timely & affordable capital
Season: Peninsular India has a longer crushing season, whereas in north India crushing season is limited by the winters.
Irrigation: access to irrigation even in the dryland areas has greatly increased yields of sugarcane production
Forward linkages: better access to roads, cold storages & markets has given a boost to sugar production
Issues with surplus sugar production
Excess sugar production creates a glut in the market, decreasing farmer incomes by leading to distress selling
Sugar mills have limited capacity. If sugarcane is not crushed within 48h of harvest it leads to loss in sugar content
Surplus sugar is exported at cheap prices this disrupts global prices raising concerns at WTO
Australia's case against India.
Measures taken to reduce surplus sugar
Ethanol blending programme (E20) which strives to reach target of 20% ethanol blended petrol by 2025
Crop diversification programme by GoI to urge farmers to cultivate crops like pulses, oilseeds etc
Close · a way forward
Given India's WTO commitments, environmental concerns & farmer's concerns there is an urgent need to manage & reform sugar production in the country, re-evaluating fair & remunerative price of sugar can help in this regard.
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