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How is Sugar Important to the Indian Economy

The government is working hard to promote ethanol as an alternative fuel source, with the goal-setting National Bio-Fuel policy finally being released in May 2018. The plan is to gradually start mixing ethanol with gasoline while also increasing ethanol output making it the best sugar plant technology.

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How is Sugar Important to the Indian Economy

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  1. How is Sugar Important to the Indian Economy? In nine states, the sugar industry in India employs around 12% of the rural population. Although there are over 490 sugar refineries in operation throughout the nation, Maharashtra, Uttar Pradesh, and Karnataka produce 89 percent of the nation's sugar. Sugarcane Farming The fresh sugarcane crop is grown on the preceding crop's stubble. Since fresh crops are typically not planted in the same agricultural area for a few years, the crop that was planted has a multi-year life cycle. The sugar season (SS) in India extends from October through September. SS22 stands for October 21 to September 22, with harvesting starting in October. What are the elements influencing sugar production in India? India's cyclical sugar market is heavily controlled. The good news is that while the government controls how much sugar is sold and exported by mills, it also provides subsidies to the sector when circumstances are tough. Lower acreage - Droughts force farmers to switch to other crops, which leads in a decline in the area planted to cane in the major sugar-producing states. Price increases for sugar result from this. Payment arrears - When sugar mills experience a loss, the mill owners fail to pay the farmers. As a result, these late payments turn into arrears, and the debt mounts. Farmers switch to other crops as

  2. a result, which reduces the amount of cane available for the following crushing season. Additionally, this causes sugar costs to increase. Dependence on the Monsoon- Low monsoons cause large changes in output predictions, which lower inventory levels. Once more, this causes sugar prices to rise. Increased Consumption - Any rise in consumption levels causes a measurable reliance on sugar reserves, which in turn causes sugar prices to soar. What is behind the sugar industry's expansion? The government is working hard to promote ethanol as an alternative fuel source, with the goal- setting National Bio-Fuel policy finally being released in May 2018. The plan is to gradually start mixing ethanol with gasoline while also increasing ethanol output making it the best sugar plant technology. By 2022, the government hopes to attain a 10% mix rate, which equates to 10% ethanol and 90% gasoline. They intend to raise it to 20% by 2025 after that. Additionally, if all goes according to plan, we might be able to lessen the volatility that frequently characterises the sugar sector.

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