A latest government update stayed today that during the last six years, this Government has successfully injected Rs.35,000/- crores in the liquidity starved sugar industry by allowing conversion of surplus sugarcane based raw materials (viz. sugarcane juice, sugar, sugar syrup) for ethanol production. This has definitely helped in early settlement of cane farmers' dues, thereby improving their financial position. For the ongoing season, it is expected that more than Rs.20,000/- crores will be injected through the ethanol blending programme alone, which will fuel growth in the rural economy, the most resilient sector in challenging COVID times. The sugar production for ensuing sugar season 2021-22 is projected to be about 340 Lakh MT, over and above the opening stock of 90 Lakh MT which is cumulatively much above the domestic consumption of 260 Lakh MT. Out of this, surplus sugar quantity of 35 Lakh MT is proposed to be diverted to ethanol. These are surplus quantities of sugar to be diverted for ethanol production, else would have to be exported at subsidized rate to other countries or if released in the market would nosedive sugar prices much below the production cost leading to utter chaos.
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