Center revokes sugar industry licenses to create new sugar factories

The Center t encourages sugar mills to divert excess sugar cane into ethanol blended with gasoline, a long-term measure to address the problem of excess sugar.

Sugar production in India

The Union government has abolished the sugar industry license encourage the establishment of new sugar factories in the country.

This was informed by the Minister of Consumer Affairs and Food and Public Distribution, Piyush Goyal, during a response to supplements in the Lok Sabha.

The minister said the government was encouraging sugar mills to divert excess sugar cane into ethanol blended with gasoline, a long-term measure to tackle the problem of excess sugar.

Meaning- It will not only serve as green fuel but also save currency due to import of crude oil. About 21 lakh tonnes of surplus sugarcane was diverted to ethanol in 2020-21, according to ISMA.


The Union Minister informed the Lower House of Parliament that in the last three sugar seasons 2017-18, 2018-19, 2019-20, around Rs 22,000 crore in revenue was generated by sugar mills and distilleries through the sale of ethanol to petroleum marketing companies. .

He said that during the normal sugar season from October to September, sugar production in the country is around 320 to 330 lakh metric tons (LMT), against domestic consumption of 260 LMT. Hence, there is a lot of excess sugar production in the country.

Sugar production in India

• Sugar production in India is expected to remain stable at 310 lakh tonnes in the financial year 2021-22, according to the Indian Sugar Mills Association (ISMA)

• The total sugarcane coverage area is estimated to be about 54.55 lakh hectares in 2021-2022, which is about 3% higher than the sugarcane coverage area of ​​about 52.88 lakh hectares in 2020-2021.

• Total sugar production is estimated at around 344 lakh tonnes in the 2021-22 marketing year, excluding the diversion of cane juice and molasses into ethanol.

• Ethanol made from sugar cane juice should be around 230 crore liters.

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Rachel J. Bradford