The 63rd council meeting of the International Sugar Organization (ISO) sparked global interest as India was announced to chair the organization in 2024. This milestone signifies India’s crucial role in the worldwide sugar industry.
Understanding the International Sugar Organization (ISO)
The ISO is an essential intergovernmental body aiming to improve the global sugar market. The group represents 87% of world sugar production and 64% of world sugar consumption. Its membership includes approximately 88 nations, with India being a significant member.
The organization is the driving force behind the International Sugar Agreement (ISA) of 1992. The ISA’s objectives include promoting international cooperation on sugar-related issues, facilitating intergovernmental discourse to improve the international sugar economy, collecting and disseminating market information, and encouraging expanded sugar use, particularly in non-traditional applications.
India’s Role in the Global Sugar Industry
India holds the titles of the largest consumer and second-largest producer of sugar worldwide. With a striking 15% share in global sugar consumption and a substantial 20% production rate, India’s strategies significantly influence the international sugar market. Geographically, India leads the Eastern Hemisphere’s sugar market, analogous to Brazil’s dominant position in the Western Hemisphere.
For sugar growth, specific geographical conditions are necessary. These include a temperature range between 21-27°C, rainfall around 75-100 cm, and deep rich loamy soil. In India, sugar industries are primarily located in two areas: the northern belt, including Uttar Pradesh, Bihar, Haryana, Punjab and Bihar, and the southern belt consisting of Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh.
Government Initiatives Impacting India’s Sugar Industry
The Indian government introduced the Fair and Remunerative Price (FRP) to ensure that sugar mills pay sugarcane farmers a minimum price. The FRP for the 2023-2024 sugar season is Rs. 315 per quintal, an annual decision made by the central government based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
Another significant initiative is the Ethanol Blended Petrol Programme. Ethanol, primarily sourced from processing sugarcane for sugar, can also be derived from alternative sources such as rice husk or maize. Under this program, ethanol is mixed with petrol to reduce fossil fuel consumption in vehicle operation. India aims to achieve a 20% ethanol-blended petrol target by 2025.
UPSC Civil Services Exam Related Information
In the previous year’s UPSC Civil Services Examination Prelims, one of the questions posed related to India’s National Policy on Biofuels. The question asked candidates to identify which raw materials can be used for the production of biofuels among options including cassava, damaged wheat grains, groundnut seeds, horse gram, rotten potatoes, and sugar beet. It provides an opportunity for participants to demonstrate their comprehension of the significance of different crops in biofuel production.
Another question required candidates to identify which among the energy crops (Jatropha, Maize, Pongamia, Sunflower) could be cultivated for ethanol; again, stressing the importance of sustainable fuel alternatives in today’s age.
