New Delhi, Aug 22 — Amid a debate over rising sugar prices across India, agriculture and sugar industry experts on Saturday said that the surge is primarily the result of lower sugarcane production and reduced sugar recovery rates, rather than the diversion of sugar for ethanol production.

They also stressed that the government closely monitors sugar availability and maintains a balance between domestic consumption, ethanol production and exports, while ensuring that consumer requirements are met first.

Speaking to IANS, Prof. Narendra Mohan Agrawal, former Director of the National Sugar Institute, Kanpur, said the recent rise in sugar prices may be somewhat unexpected but it would be incorrect to attribute it solely to ethanol production.

"The government annually assesses sugar production and ensures that sufficient quantities are available for domestic consumption before permitting diversion for ethanol production or exports," he said.

According to Prof. Agrawal, India's annual sugar requirement is around 280 lakh tonnes. Only surplus sugar is allowed to be used for ethanol production or exports. In the current year, sugar equivalent to about 31 lakh tonnes was diverted for ethanol production, while roughly 7 lakh tonnes was exported.

Despite this, the country continues to maintain adequate buffer stocks, he said.

"This year, India produced around 306 lakh tonnes of sugar and also had carry-over stocks from the previous year. Under normal conditions, the country maintains buffer stocks of 50 lakh tonnes or more to ensure supply stability during unforeseen situations. Therefore, it would not be appropriate to blame ethanol diversion alone for higher sugar prices," he told IANS.

Agrawal described ethanol as a game changer for the Indian sugar industry. Earlier, when sugar production exceeded domestic demand, market prices would decline sharply, affecting the financial health of sugar mills and delaying payments to farmers. He noted that while exports were once the primary route for managing surplus sugar, fluctuating international prices and global competition often limited profitability.

Moreover, he said the ethanol blending programme has provided stability to the industry while contributing to energy security, reducing petroleum imports and promoting cleaner fuel alternatives.

The expert added that the government regularly reviews production estimates and accordingly determines the quantity of sugar that can be diverted towards ethanol production. If production is expected to fall, restrictions can be imposed on both ethanol diversion and exports.

Meanwhile, Dr Hari Om, Prof.-cum-Junior Scientist at Bihar Agricultural University (BAU), Sabour, said the current situation is also linked to a decline in quality sugarcane production.

He noted that states such as Maharashtra and Tamil Nadu record higher sugar recovery rates because sugarcane remains in the field for a longer duration compared to northern states, where harvesting and crushing take place over a relatively shorter crop cycle.

According to him, North India is currently passing through a lean crushing season. As the main harvesting and crushing season begins, sugar production is expected to increase, improving market supplies and easing pressure on prices.

Dr Hari Om explained that most farmers in northern India sow sugarcane during April and May and harvest the crop after about 10 to 11 months.

In contrast, farmers in Maharashtra generally plant sugarcane in October-November and allow the crop to remain in the field for 13 to 14 months, resulting in greater sugar accumulation and better recovery rates.

In Tamil Nadu, sugarcane is typically planted during July-August and has a crop duration of up to 18 months, contributing to some of the highest per-hectare productivity levels in the country, he said. Maharashtra's sugar recovery rates, at around 13-14 per cent, are among the highest in India.

BAU's professor suggested that farmers in northern India could improve cane quality by opting for October-November planting after paddy harvest and adopting intercropping practices with crops such as wheat, mustard, lentils, gram and vegetables.

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