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- India has emerged as the world’s largest producer and consumer of sugar and its second-largest exporter.
- A record amount of sugarcane of more than 5000 Lakh Metric Tons (LMT) was produced in the nation during the sugar season from Oct. to Sep. (2021–22), of which around 3574 LMT was crushed by sugar mills to make about 394 LMT of sugar(Sucrose).
- Out of this, 359 LMT of sugar was produced by sugar mills, while 35 LMT of sugar was diverted to the manufacturing of ethanol.
- As a result, India has surpassed all other countries to become the world’s largest producer and consumer.
- South India has a tropical climate which is suitable for higher sucrose content giving a higher yield per unit area as compared to north India.
- The growth of ethanol as a biofuel sector in the last five years has been a boon for the sugar sector as the use of sugar for ethanol has led to sugar mills attaining better financial positions.
- FRP is the minimum price that the sugar mills have to pay to farmers.
- It is determined on basis of recommendations of the Commission for AgriculturalCosts and Prices (CACP) and after consultation with State Governments and other stakeholders.
- In other key growing states of Uttar Pradesh, Punjab, Haryana, Tamil Nadu, and Uttarakhand, farmers get the State Advised Price (SAP) fixed by state governments which is usually higher than FRP.
