Even if the consumption of ethanol in the country increases, the supply of sugar will remain in surplus

- Ubhi Bazar: Dilip Shah

- Sugar mills are now ready to start production of fuel used in airplanes through special process!

The equations in the sugar market and industry in the country have recently changed rapidly. Corona infestation is declining and lockdown controls in various cities and states of the country are easing and now the reopening process is gaining momentum. In such an environment, the demand and inquiries of bulk consumers in the sugar market and industry are now re-emerging, market experts said. Earlier, during the Corona period, government restrictions were imposed on hotels, restaurants and various public functions amid lockdown, and demand from the hotel, restaurant and catering sector in the sugar market was hit hard. However, the demand for sugar for household consumption also increased during this period. However, with the removal of Corona and lockdown and easing of government controls, bulk consumers are returning to the sugar market, market insiders said. In addition to sugar, a factor called ethanol has now joined the sugar industry. Consumption of such ethanol for blending in petroleum products is increasing. Sugarcane production is now shifting towards ethanol production in addition to sugar production. In such an environment, another question is now being asked in the market. Will increasing ethanol consumption lead to sugar shortage in the country? That question has been debated. However, according to sources in the sugar mills, even if the consumption of ethanol increases, the supply of sugar will be maintained so consumers do not have to worry. In fact, the supply of sugar in the country has been in surplus and even if the demand for ethanol increases, the market price of sugar is expected to remain reasonable, the sources said.

The sources claim that if there is a drought or heavy rains in a year and the sugarcane crop is affected, the supply of sugar will be reduced and the supply of sugar at home will be maintained except for such incidents. The new sugar season 2021-2 has started in the country from October and at the beginning of the new season, the surplus stock of sugar was around 21 to 3 lakh tonnes. Meanwhile, experts estimate that the country's sugar production in the new season will be around 215 to 215 lakh tonnes. Thus, the total available supply of sugar in the country is estimated to be close to 200 lakh tonnes in the sugar industry. Against this, the annual demand of sugar in the country is around 3 to 4 lakh tonnes.

In view of this, the surplus amount of sugar in the country is estimated to be around 120 lakh tonnes. Out of this surplus, market players are keeping an eye on how much sugar will be exported. According to experts in the field of sugar, estimating the amount of sugarcane to be used in the production of ethanol, subtracting this amount from the total quantity of sugarcane, then estimating how much sugarcane will be available for making sugar, based on estimates, sugar production in the country is estimated to be around 215 to 215 lakh tonnes. Has come. Experts say that there is no need for sugar consumers to worry. The amount of sugarcane that can be diverted to make ethanol is estimated to be about 3 to 4 lakh tonnes of sugar. Experts are calculating that even if the demand for sugar increases and the demand for ethanol increases in the coming years, the supply of sugar will remain in surplus against the demand.

Meanwhile, experts said that the process of co-electrolysis in the sugar industry could make it possible to make sustainable aviation fuel through this process. Such fuel can be used in airplanes. The idea has been presented to the government and there are indications that the idea is getting a positive response from the government. There are rumors that a Pune-based company has started such experiments. Experts say that if these experiments are successful, the sugar mills in Maharashtra will be able to produce jet fuel in the coming years. The total global demand for such fuels is around 100 billion gallons.

Meanwhile, the country's sugar exports in the four months of October, November, December and January increased to about 21-3 lakh tonnes from just one million tonnes in the previous season. However, according to recent trends, world sugar prices have been fluctuating from high to low. There are indications that Brazil's new sugar will soon enter the world market.