The sugar business in general is a key agro-based industry that affects the rural livelihoods of around 50 million sugarcane farmers and over 5 lakh employees directly engaged in sugar mills. Employment is also created in a variety of auxiliary businesses such as transportation, trade service of machinery, and agricultural input delivery. India is the world’s second largest producer of sugar after Brazil, and it is also the greatest user. Today, the yearly production of the Indian sugar sector is roughly Rs.80,000 crores. As of 31.07.2017, the country had 732 sugar plants constructed, with the crushing capacity to generate around 339 lakh MT of sugar. Capacity is largely split evenly between commercial and cooperative sector units.
Policy on Sugar and SugarCane
- The sugar business is a significant agro-based sector that affects the rural livelihoods of over 50 million sugarcane growers and approximately 5 lakh employees directly engaged in sugar mills. Employment is also created in a variety of auxiliary businesses such as transportation, trade service of machinery, and agricultural input delivery. India is the world’s second largest producer of sugar after Brazil, and it is also the greatest user. Today, the yearly production of the Indian sugar sector is roughly Rs.80,000 crores.
- As of 31.07.2017, the country had 732 sugar plants constructed, with the crushing capacity to generate around 339 lakh MT of sugar. Capacity is largely split evenly between commercial and cooperative sector units. Sugar mill capacity is typically in the 2500 TCD-5000 TCD range, although it is increasingly expanding and exceeding 10000 TCD. In addition, two freestanding refineries have been developed in the nation, in the coastal belts of Gujarat and West Bengal, to manufacture refined sugar mostly from imported raw sugar as well as indigenously produced raw sugar.
Subsidy for Sugar
The Central Government was reimbursing the participating State Governments/UT Administrations at the rate of $18.50 for every kilogramme of sugar provided. The plan included the whole BPL population of the country as of the 2001 census, as well as the entire population of the North Eastern States, special category states, mountainous states, and island territories. The National Food Security Act of 2013 (NFSA) is presently being implemented uniformly by all 36 states/territories. There is no specified category of BPL under the NFSA; nevertheless, Antyodaya Anna Yojana (AAY) recipients are clearly identifiable.
The Government of India has evaluated the Sugar Subsidy Scheme and determined that it is critical to provide access to sugar consumption as a source of energy in the diet for the poorest of the poor, i.e. AAY households. As a result, the Central Government concluded in May 2017 that the present system of sugar distribution via PDS may be maintained if the following conditions were met:
- The present plan of subsidised sugar supply through PDS may be maintained for limited coverage of AAY families alone. Each family will receive 1 kilogramme of sugar every month.
- The present level of subsidy granted by the Central Government to States/UTs for sugar distribution via PDS at Rs. 18.50 per kg may be maintained for the AAY population. The states/UTs may continue to pass on any additional expenses incurred as a result of shipping, handling, and dealer commissions, etc., in excess of the retail issue price of Rs. 13.50 per kilogramme to the recipient or bear them themselves.
Revised instructions for payment of sugar subsidy to states/UTs for distribution of sugar under PDS for AAY households have also been released in response to the aforementioned judgement.