About Sugar Industry

Sugar Industry or Energy Industry?
     It’s the law of nature. Only those who adapt to the changing circumstances they survive and those who adapt meaningfully and creatively. They don’t just survive, they grow, they flourish.
     This is what is in the offing for the Indian Sugar Industry. As per the estimates of Indian Sugar Mills Association the sugar production in the year 2018-19 is likely to reach a new high of 355 to 360 lakh tonnes.
How do we handle this unprecedented boom?
     This means even after fulfilling the domestic demand for sugar, we will have a huge surplus of around 220 lakh tonnes by the end of 2018 season. The obvious consequence would be crashing down of sugar prices, which will make things worse for the industry.  Fortunately the Government is well aware of this and has already initiated some remedial measures.
     It has declared the ‘Statutory Sugar Export Quota’ of 20 lakh tonnes. The export tax has been reduced. The export - grant is to be linked indirectly to the sugarcane prices. Moreover the minimum selling price for sugar has been fixed at 2900 Rs./quintal.
     All said and done, it is but obvious that we can’t just rely upon the export of sugar surplus. Realising this the Government is trying to address the problem by emphasising the production of ethanol. Moreover the Government has taken the decision to allow direct ethanol production from sugarcane juice as well.
     Considering this, we have all the reasons to believe that the industry will have a bright future provided we are ready to respond positively ready to capitalise on the new opportunities.
    Besides sugar, there is a clear scope for some real expansion in these two fields i.e. Ethanol production and co-generation. It seems that the Sugar Industry is tending to become ‘Energy Industry’ in coming years. And why not... if that is the need of the hour. A fact to reckon with by all the manufactures and suppliers providing goods and services to the sugar industry.
     This could be, a real boost... some real ‘Energy’ for their business !