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In 2021-2022, India surpassed Brazil to become the largest sugar producer in the world, producing 359 lakh tonnes – an all-time high.

Status of Sugarcane Sector in India:

• The Largest Sugarcane Producer: India has emerged as the largest producer of sugarcane in the world, surpassing Brazil during the 2021-22.
• The Second Largest Sugar Exporter: India has consistently been the second-largest exporter of sugar, following Brazil. 
• Top Sugarcane Producing States: Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Bihar.

Factors Behind Excess Sugar Production:

• Domestic Demand and Consumption: India is the world’s largest consumer of sugar, necessitating significant production to fulfill its substantial domestic demand.
• Favorable Policies for Sugarcane Cultivation: The surplus sugar production is a result of policies and measures encouraging farmers to cultivate sugarcane.
  • The Central government’s Fair and Remunerative Price (FRP) scheme ensures minimum prices for sugarcane, securing fair profits for farmers.
• State Government Subsidies: State governments provide substantial subsidies to incentivize sugarcane cultivation, often with political motives in mind, aiming to garner support from rural communities.

Impact and Consequences:

• Excessive Sugar Surplus: These policies have led to an oversupply of sugar, resulting in higher production levels than necessary.
• Record Exports: The surplus production has prompted higher exports, with a notable 110 lakh tonnes exported in 2021-2022.
• International Trade Disputes: India’s aggressive exports drew international attention, leading to complaints from sugar-exporting countries like Brazil, Australia, and Guatemala.
  • These countries alleged India was violating international trade rules through excessive export subsidies and domestic support for farmers.
• World Trade Organization (WTO) Involvement:
  • The WTO ruled against India, concluding that its policies were undermining fair competition in the global sugar market.

Efforts to Address Sugar Surplus:

• Ethanol Production Diversification: The Indian government explored the option of diverting excess sugar production towards the production of ethanol.
  • Ethanol is produced by fermenting sugarcane molasses or sugar and has applications in various industries, including chemicals, cosmetics, and beverages.
• Environmental Benefits of Ethanol-Blended Petrol (EBP): Ethanol can be blended with petrol to create ethanol-blended petrol (EBP), which is known to significantly reduce harmful emissions from vehicles.
  • EBP helps curtail emissions of carbon monoxide and hydrocarbons, contributing to environmental protection.
• Ethanol Blending Programme (EBP): The government initiated the EBP program in 2003 with the aim of reducing crude oil imports and greenhouse gas emissions from petrol-based vehicles.
  • Originally set with a blending target of 5%, the program has seen remarkable success and progress.
• Blending Target Expansion: As part of its efforts, the government elevated the blending target from the initial 5% to an ambitious target of 20% by the year 2025.
• Policy Support and Tax Reduction: To encourage the production and use of ethanol, the government took measures such as reducing the Goods and Services Tax (GST) on ethanol from 18% to 5% in 2021.
• Effective Diversion of Sugar to Ethanol:In 2021, around 350 lakh tonnes of the total sugar production of 394 lakh tonnes were diverted towards ethanol production.
  • This diversion to ethanol production indicates a significant shift in utilizing excess sugar for a productive and environmentally beneficial purpose.

Impact of Excessive Sugarcane Cultivation on Groundwater

• Resource-Intensive Crop and Water Consumption:
  • Resource-Intensive Nature: Sugarcane is a cash crop that demands substantial resources, including a significant land area and a substantial amount of water for its growth.
  • Water Guzzling Crop: Sugarcane’s water requirements are particularly notable, as it consumes a significant amount of groundwater for its cultivation.
• Geographical Distribution and Water Needs:
  • Top Sugarcane-Growing States: India’s leading sugarcane-producing states are Maharashtra, Uttar Pradesh, Karnataka, Gujarat, and Tamil Nadu. The bulk of the country’s sugar production originates in these states.
  • Water Deficit: While sugarcane would ideally require around 3,000 mm of annual rainfall if it were solely rainfed, the actual rainfall in these states, such as Maharashtra, Uttar Pradesh, and Karnataka, ranges from 1,000-1,200 mm per year, rendering them water-deficient.
• Groundwater Depletion and Limited Resource:
  • Groundwater Utilization: Due to water deficit conditions, groundwater serves as a major source for sugarcane irrigation in these states.
  • Confined Aquifers: Most of the groundwater is found in confined aquifers, trapped between impermeable rock layers. Extraction involves borewell drilling through the upper layer.
  • Limited Recharge: Unlike unconfined aquifers replenished by rainfall, confined aquifers face limited natural recharge, making them finite resources.
• Water Consumption for Sugar Production: 
  • High Water Consumption: To produce 100 kg of sugar from one tonne of sugarcane, around 2 lakh litres of groundwater is consumed solely for irrigation.
  • Industrial Process Water: In addition to irrigation, water is used in the industrial sugar-manufacturing and refining processes.
  • Massive Groundwater Footprint: The 110 lakh tonnes of sugar exported by India in 2021-2022 essentially incorporates a colossal 26 lakh crore litres of groundwater.

Challenges and Concerns:

• Drought and Groundwater Stress: The top sugarcane-growing states are already grappling with drought and groundwater stress.
• Central Ground Water Board Report: The Central Ground Water Board (CGWB) reported in 2022 that a substantial portion of groundwater assessment units in these states are categorized as ‘semi-critical,’ ‘critical,’ or ‘over-exploited.’

Solutions to Excessive Sugarcane Cultivation and Groundwater Depletion:

• Balanced Incentives and Subsidies: 
  • Problem Assessment: Address the imbalanced incentives favoring sugarcane over other crops, leading to excessive cultivation.
  • Comprehensive Subsidy Schemes: Introduce fair and comprehensive subsidy programs that encourage diversification and balanced cultivation, preventing monocultures and ensuring equitable incomes.
• Crop Diversification:
  • Promoting Variety: Encourage farmers to diversify crops, reducing dependence on water-intensive crops like sugarcane.
  • Equitable Income: A range of profitable crops can alleviate resource strain and enhance sustainability.
• Environmentally Responsible Cultivation:
  • Drip Irrigation: Implement efficient irrigation methods like drip irrigation, which significantly reduces water consumption (up to 70%) compared to traditional flood irrigation.
  • Mandatory and Supported: Make drip irrigation mandatory in targeted regions and provide subsidies for its setup.
• Water-Saving and Management Systems:
  • Rainwater Harvesting: Promote rainwater harvesting to supplement water supply.
  • Wastewater Treatment: Utilize treated wastewater for irrigation to reduce reliance on groundwater.
  • Canal Irrigation Networks: Develop efficient canal irrigation networks for more sustainable water distribution.
• Enhanced Groundwater Research:
  • Data and Understanding: Invest in in-depth research and mapping of groundwater availability and distribution.
  • Science-Based Policies: Use accurate data to formulate science-based policies for groundwater management.
• Sustainability as Priority: Embed sustainability at the core of India’s agricultural practices.

News Source: The Hindu