India to Chair International Sugar Organisation in 2024

Context: India’s appointment as the chair of the International Sugar Organisation in 2024 is a momentous occasion for the country, highlighting its growing influence in the global sugar industry.

International Sugar Organization:

• The International Sugar Organization is an important intergovernmental organisation that aims to improve the global sugar market. It represents a majority of the world’s sugar production and consumption.
• The organisation includes a wide variety of countries, including India, and has a membership of approximately 88 nations.
• The International Sugar Agreement (ISA), established in 1992 by the ISO, seeks to promote collaboration among countries in sugar-related matters, enhance global sugar economy through intergovernmental discussions, share market information, and promote the use of sugar in non-traditional ways.

What is the current situation of the sugar industry in India?

• India is the world’s biggest consumer and second biggest producer of sugar. It has a significant influence on the global sugar market, accounting for 15% of consumption and producing 20% of the world’s sugar. India is the leading sugar market in the Eastern Hemisphere, while Brazil dominates in the Western Hemisphere.
• The ideal geographical conditions for the growth of sugar include a temperature range of 21-27°C in a hot and humid climate, rainfall of approximately 75-100 cm, and the presence of deep, fertile loamy soil.
• The sugar industry is mainly located in two regions: the northern belt (including Uttar Pradesh, Bihar, Haryana, Punjab, and Bihar) and the southern belt (including Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh). The southern region benefits from a tropical climate, which leads to higher sucrose content in crops and greater yields per unit area compared to northern India.

Government Initiatives:

Fair and Remunerative Price (FRP): 

• The government has announced that the minimum price sugar mills must pay sugarcane farmers for the 2023-2024 season is Rs. 315 per quintal. This price, known as the FRP, is set annually by the government based on recommendations from the CACP.
• The FRP system does not connect the price given to farmers for sugarcane with the profits made by sugar mills.

Ethanol Blended Petrol Programme:

• Ethanol is a substance that is obtained from sugarcane processing for sugar and can also be produced from other sources such as rice husk or maize.
• Ethanol blending refers to the mixing of ethanol with petrol to decrease the use of fossil fuels in vehicles. India has set a goal to reach a 20% ethanol-blended petrol target by 2025.

Source: PIB

Practice question:

Q. Account for the Southward shifting trend in the Sugar Industries of India. What are the major problems faced by the Sugar Industry in India and how can they be addressed?

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