In the past five years, India has transitioned from a minor sugar exporter to the second-largest in the world, trailing only behind Brazil. From 2017-18 to 2021-22, the country’s exports have skyrocketed from USD 810.9 million to USD 4.6 billion and are projected to surpass USD 5.5 billion in the current fiscal year.
Understanding India’s Sugar Industry
The sugar industry plays a vital role in India’s agro-based economy and directly impacts about 50 million sugarcane farmers and around 500,000 workers employed in sugar mills. As of the 2021-22 fiscal year, India has emerged as the world’s largest producer and consumer of sugar and is now the world’s second-largest sugar exporter.
Geographically, the industry is distributed across two major production areas: the northern region covering Uttar Pradesh, Bihar, Haryana, and Punjab, and the southern region including Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh. The tropical climate in South India results in higher sucrose content, yielding a higher output per unit area compared to North India.
Geographical Requirements for Sugarcane Growth
Sugarcane thrives in temperatures between 21-27°C in a hot and humid climate. The crop requires rainfall around 75-100 cm and deep rich loamy soil for optimal growth.
A Lookback at India’s Sugar Exports
Until the 2017-18 fiscal year, India scarcely exported any raw sugar. The country mainly shipped plantation white sugar, produced by refining raw sugar with an ICUMSA (International Commission for Uniform Methods of Sugar Analysis) value of 100-150. This was internationally known as low-quality white (LQW). ICUMSA is a measure of sugar purity, with lower values indicating whiter sugar.
Current Status of Sugar Exports
Out of India’s total 110 lakh tonnes (lt) of sugar exports in 2021-22, raw sugar alone accounted for 56.29 lt. The significant importers of Indian raw sugar included Indonesia (16.73 lt), Bangladesh (12.10 lt), Saudi Arabia (6.83 lt), Iraq (4.78 lt), and Malaysia (4.15 lt).
The Reasons Behind India’s Rising Sugar Exports
Indian raw sugar is devoid of dextran, a bacterial compound that forms when sugarcane is exposed to the sun for extended periods after harvesting. Indian cane is crushed within 12-24 hours of harvesting, whereas it takes around 48 hours in Brazil.
Furthermore, Indian raw sugar has a higher polarization (98.5-99.5%) compared to other producers like Brazil, Thailand, and Australia, making it cost-effective to refine. Polarization represents the percentage of sucrose present in a raw sugar mass.
However, due to declining stocks and production in 2021-22, the government has capped India’s sugar exports to 61 lakh tonnes for the current sugar year to ensure domestic availability and curb food inflation.
A Look at Sugarcane Cultivation Trends
Sugarcane cultivation in India is rapidly evolving. There are substantial savings in seed material when ‘bud chip settlings’ are raised in a nursery and transplanted in the main field. Although direct planting of setts has better germination percentage with single-budded setts, large setts have better survival under adverse weather conditions if protected with chemical treatment.
An alternate method of cultivation involves using tissue culture to cultivate settlings which are then transplanted into the field. However, due to its rigorous requirements and physical limitations, tissue culture is generally considered uneconomical. Alternatively, budding chip technology is emerging as a more cost-effective method. This process reduces the mass and allows for quicker seed multiplication, proving more economical and convenient than the traditional method of planting two to three bud setts.
The sugar industry in India has witnessed significant growth, particularly in southern states, although challenges remain in maintaining the balance between domestic consumption and exports.
