Press Information Bureau

Government of India

Ministry of Finance

24-April-2012 12:49 IST

Finance Minister Asks the Sugar Sector to use Latest Technology for Improving the Production and Productivity as Well as Quality of Sugar and Higher Recovery of Sugar From Sugarcane Among Others

The Union Finance Minister Shri Pranab Mukherjee has said that sugar plays a very significant role in India’s agricultural and industrial economy.  The Finance Minister said that the Indian sugar industry being one of the largest agro based industry in India, is critical for India’s rural development and, in turn, for the overall economic progress. He said that around 50 million farmers are involved in sugarcane cultivation and harvesting.  The Finance Minister Shri Mukherjee was addressing the delegates after inaugurating the 41st Council Meeting of International Sugar Organization, here today.

 The Finance Minister, Shri Mukherjee said that sugar sector should use the latest technology for enhancing production and productivity.  He said that the Government has taken number of steps to revitalize sugar industry so that it is in a position to reap the advantages of free and growing market.  He said that the Government has been using a variety of instruments such as trade policy, including import of duty free raw sugar under advance authorization scheme, or import of duty free white or refined sugar by certain Government agencies and import of duty free raw sugar under Open General License.  The Finance Minister said that some of the specific areas where further attention is required especially through technological improvements include improvement in the quality of sugar, energy conservation, environmental considerations in the production of sugar, improvement in the recovery of sugar from sugarcane and reduction in the water intensity of crops among others.

Shri Mukherjee asked the International Sugar Council to examine and analyze the information system on demand and supply, international policies and the trade competitiveness for realistic estimation of sugar production.  He said better information is a powerful tool for price stability.   In his concluding remarks, the Finance Minister Shri Mukherjee emphasized the importance of global cooperation in research and development of sugar technologies which holds the key to unlock the full potential of this important industry in the developing countries.

Full text of the Finance Minister’s address is given below:

“I am pleased to be here with you all this morning at the inauguration of the 41st Session of the International Sugar Council. The International Sugar Council is the organization at global level responsible for looking after development of sugar industry globally and providing the necessary policy support to the development of the sugar sector. I welcome this meeting of the council and all the foreign participants and wish you a pleasant and fruitful stay here in India.

          The sugar industry is one of the world’s oldest agro-based industries. India has a long and rich tradition of growing sugarcane. Sugar plays a very significant role in India’s agricultural and industrial economy. Indian Sugar Industry, being one of the largest agro based industry in India, is critical for India’s rural development and, in turn, for the overall economic progress.  Around 50 million farmers and their families are involved in sugarcane cultivation and harvesting. The industry has supported employment in various ancillary activities. It also contributes to renewable sources of energy. This is critically important both in view of the environmental concerns that we face today and also in the context of our country’s energy security. With such wide ranging economic activities, sugar industry has built up a place of its own in the Indian economy. I am sure this is also the case with many sugar producing economies in the world.

          One of the important features of Indian Sugar Industry is that it is largely in the cooperative sector. Cooperatives have played a key role in its progress and would continue to do so. As we move forward, we must ensure that the Sugar sector has access to the latest technology for enhancing production and productivity. I would urge International Sugar Council to take necessary steps for collaborative research and development so that collectively entire sugar industry around the world benefits from it.

          On our part, Government of India has taken a number of steps to revitalize the Sugar Industry so that the industry is in a position to reap the advantages of free and growing market. The Government of India has been seeking to stabilize the sugar prices by moderating the volatility during scarce and surplus domestic sugar seasons. We have been using a variety of instruments such as trade policy, including import of duty free raw sugar under advance authorization scheme, or import of duty free white or refined sugar by certain Government agencies and import of duty free raw sugar under Open General License.  Some of the specific areas, in my view, where further attention is required, especially through technological improvements are:-

Ø  Improvement in  the quality of sugar;

Ø  Energy conservation;

Ø  Environmental considerations in the production of sugar;

Ø  Improvement in the recovery of sugar from sugarcane; and

Ø  Reduction in the water intensity of crops.

          I also believe that development of sugar by-products is vital for improving the financial health of the Sugar Sector. Co-generation of electricity by Sugar Mills is a potential source of environment friendly energy. These technologies must be developed and encouraged to spread quickly. I also believe that Industry should tap the benefits from the flexible market based mechanisms under the Kyoto protocol such as Clean Development Mechanism and in the process earn carbon credits.    

          As the highest authority under the International Sugar Agreement, I look forward to see further steps for the development and stabilization of Sugar Sector by the International Sugar Council. I am aware of the number of activities undertaken by International Sugar Council in different parts of the world with a view to giving economic boost to the Sugar Sector. Much more need be done to improve the world sugar economy as we are still at a time when the world sugar market continues to experience considerable price volatility.

          Besides the issues highlighted by my colleagues  I would like the council session to examine and analyze the information system on demand and supply, international policies and the trade competitiveness for realistic estimation of sugar production. Better information is a powerful tool for price stability.

          Let me conclude by emphasizing the importance of global co-operation in Research and Development of sugar technologies, which holds the key to unlock the full potential of this important industry in the developing countries.

          With these words, I have great pleasure to inaugurate this Council.  I wish you and your deliberations all the success.”

DSM/SS/GN

Trade policy and technology adoption urged to stabilise sugar supply and boost quality, recovery, energy and environmental performance. The Finance Minister urged adoption of advanced technology to improve production, productivity, sugar quality and recovery from sugarcane; highlighted government use of trade policy instruments, including duty free imports under specific schemes to stabilise supply and prices; identified priorities-improved sugar quality, energy conservation, environmental considerations, higher recovery and reduced water intensity-and called for development of by product technologies, co generation, carbon credit opportunities and enhanced international cooperation on data, research and technology transfer.