India to Chair International Sugar Organisation in 2024

• 28 Nov 2023

Source: PIB

Why in News?

The recent announcement at the 63^rd council meeting of the International Sugar Organisation (ISO), headquartered in London, heralded a significant moment for India.

• India is set to chair the organization in 2024, marking a pivotal milestone in its global stature within the sugar industry.

What is the International Sugar Organization?

• The International Sugar Organization serves as a vital intergovernmental body dedicated to enhancing the global sugar market. It represents:
  • 87% of world sugar production
  • 64% of world sugar consumption
• With a membership of around 88 nations, India being among them, the organization encompasses a diverse range of countries.
• The ISO administers the International Sugar Agreement (ISA), 1992 aiming to:
  • Foster international cooperation in sugar-related matters
  • Facilitate intergovernmental discussions to improve the global sugar economy
  • Collect and disseminate market information
  • Encourage expanded sugar use, especially in non-traditional applications.

What is the Status of the Sugar Industry in India?

• About:
  • India is the largest consumer and second-largest producer of sugar globally. With a substantial 15% share in global sugar consumption and a robust 20% production rate, India's strategies significantly impact the international sugar market.
  • India stands as the Eastern Hemisphere's market leader in sugar, complementing Brazil's stronghold in the Western Hemisphere.
• Geographical Conditions for the Growth of Sugar:
  • Temperature: Between 21-27°C with hot and humid climate.
  • Rainfall: Around 75-100 cm.
  • Soil Type: Deep rich loamy soil.
• Distribution: The sugar industry is predominantly located across two primary production regions: the northern belt encompassing Uttar Pradesh, Bihar, Haryana, Punjab and Bihar and the southern belt comprising Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh.
  • The southern region benefits from a tropical climate, which is conducive to higher sucrose content in crops, resulting in increased yields per unit area compared to northern India.
• Related Indian Government Initiatives:
  • Fair and Remunerative Price (FRP): The government has set the FRP for the 2023-2024 sugar season at Rs. 315 per quintal.
    • FRP is the minimum price that sugar mills must pay sugarcane farmers. It is announced annually by the Centre.
      • The government fixes the FRP based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
    • Under the FRP system, the price paid to farmers for sugarcane is not linked to the profits generated by sugar mills.
  • Ethanol Blended Petrol Programme
    • Ethanol is an agricultural by-product primarily sourced from the processing of sugarcane for sugar, and can also be derived from alternative sources like rice husk or maize.
      • When ethanol is mixed with petrol to reduce the consumption of fossil fuels in vehicle operation, it is termed Ethanol Blending.
    • India aims to achieve a 20% ethanol-blended petrol target by the year 2025.

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims

Q According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (2020)

1. Cassava
2. Damaged wheat grains
3. Groundnut seeds
4. Horse gram
5. Rotten potatoes
6. Sugar beet

Select the correct answer using the code given below:

(a) 1, 2, 5 and 6 only
(b) 1, 3, 4 and 6 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4, 5 and 6

Ans: (a)

Q. Given below are the names of four energy crops. Which one of them can be cultivated for ethanol? (2010)

(a) Jatropha
(b) Maize 
(c) Pongamia
(d) Sunflower

Ans: (b)