India is the world's second-largest producer of sugar and lies behind Brazil in terms of sugar production and exports.
Sugar Production In India
According to the industry body Indian Sugar Mills Association (ISMA), in the upcoming season, which starts in October 2023, the nation's sugar production is projected to decrease by 3.41 percent to 316.80 lakh tonnes as a result of increased cane diversion for ethanol production.
Production of sugar is projected to be 328 lakh tonnes during the current 2022–23 season (October–September). Sugar production in the 2023-24 season is expected to be higher than domestic consumption of 275 lakh
tonnes, leaving a surplus of 42 lakh tonnes at the end of the season, according to the report.
The total area planted with sugarcane in 2023–2024 is slightly higher than the previous year, at 59.81 lakh hectares compared to 59.07 lakh hectares. According to theISMA, cane acreage in Karnataka and Tamil Nadu remains low.
Sugarcane For Ethanol Production
According to an early estimate provided by the Indian Sugar Mills Association (ISMA), approximately 45 lakh tonnes of sugar will be diverted towards ethanol production in the upcoming season of 2023–2024 as opposed to approximately 41 lakh tonnes in the current season.
The Government's plan to divert more sugarcane to the production of ethanol for use in gasoline blends in order to reduce the country's reliance on oil imports. By 2025, the government intends to blend 20% ethanol into gasoline. The US Department of Agriculture reports that the country currently blends ethanol at a rate of 11.5%.
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