Challenges and Opportunities in India's Sugar and Ethanol Industries

Deepak Ballani of ISMA highlights the need to improve sugar price realisations and urges a revision in ethanol procurement prices. Despite stable sugar prices, rising production costs threaten financial viability. Ballani advocates for policy adjustments and innovations to boost both the sugar and ethanol sectors.

India's sugar industry is under financial strain as current ex-mill sugar prices fall short of production costs, says Deepak Ballani, Director General of the Indian Sugar & Bio-energy Manufacturers Association (ISMA).

Sugar prices in states like Uttar Pradesh and Maharashtra hover around Rs 41-41.50 and Rs 39 per kg, respectively, while production costs are approximately Rs 42 per kg, pushing the industry to consider price adjustments for sustainability.

Retail sugar prices are stable, and Ballani calls for matching Fair and Remunerative Prices for sugarcane with sugar realisations to ensure mills' financial health and timely farmer payments, amidst expectations of stable sugar availability.

On the ethanol front, Ballani highlights the urgency of revising procurement prices due to increased production costs and advocates for the use of ethanol in flex-fuel vehicles and cooking stoves to enhance energy security.

With Maruti Suzuki's new flex-fuel vehicle launch, Ballani emphasizes the potential of ethanol to reduce import dependency and strengthen the industry by gaining government support for policy updates.