India is world's second-largest sugar producer but ranks 138th in per capita consumption

India is the world's second-largest sugar producer, but ranks 138th in per capita sugar consumption. The country accounts for 16.1 per cent of global sugar production, yet sugar use in food is very low here.

The country makes about 3 crore tonnes of sugar every year, and roughly 90 per cent of it is sold within the country. For this reason the Centre keeps control over sugar prices and sales. The effect shows when farmers are paid for their sugarcane.

The practice of blending ethanol with petrol is growing across the world. In view of this, the Centre decided to blend 20 per cent ethanol with petrol in India too, and offered incentives to sugar mills for it. Mills had been asked to make ethanol to raise their income. The Centre approved 380 projects in Maharashtra alone under the interest subvention scheme.

This year, however, the government banned the making of ethanol from sugar. The mills have invested crores of rupees, yet they are not earning a single rupee from it. Those who run the mills are distressed.

There is also the Rangarajan Committee's recommendation on sugarcane prices. According to it, 75 per cent of the net profit mills make from selling sugar is to be given to farmers. The committee had also said that farmers would get 70 per cent of the total profit. On this basis, the government has placed restrictions on the price mills pay for sugarcane through the FRP.

Among the top sugar-producing countries, Brazil is first, with production of 4.38 crore tonnes and a 23.5 per cent share of world output. India is second with 3 crore tonnes and a 16.1 per cent share. The European Union makes 1.55 crore tonnes, which is 8.3 per cent of world output. China's production is 1.26 crore tonnes, a share of 6.8 per cent.

On per capita consumption, a person in Luxembourg eats 178.82 kg of sugar a year. The figure is 66.55 kg in Russia and 62.95 kg in the United States. Per capita consumption in Brazil is 38.90 kg, while in India it is only 19.63 kg.