The productivity of sugar industry can be improved by focusing on basic reforms like deregulation, rather than providing bailout packages. Examine (200 Words)
Refer - Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
Existing flaws in bail out packages
· The loans allocated for setting up new ethanol manufacturing plants, including standalone distilleries, to augment the overall ethanol production capacity.
· The objective is to encourage the use of B-heavy molasses (which still has some extractable sugar) and sugarcane juice to make ethanol, sacrificing the main product sugar.
· The long-term implications of direct conversion of cane juice into alcohol are truly worrisome. It would tend to encourage larger cultivation of this water-guzzling crop which can be ecologically disastrous. India, being short of both land and water, can ill-afford to devote its prime agricultural land with assured irrigation facilities for biofuel production.
· Existence glut situation in markets because of restrictions in exports.
Needed basic reforms
· The sustainable solution to the sugar sector’s persistent troubles lies, indeed, in carrying out basic reforms leading to total deregulation and decontrol of this industry.
· These included a revenue sharing-based pricing formula to link cane prices with those of sugar. This would let the production of both sugarcane and sugar to respond effectively to market demand.
· This helps in moderating shortages and gluts without hurting the interests of any stakeholder in this sector, be it the cane grower, sugar producer or consumer.
· Ethanol, which is a plentiful product in the sugar manufacturing process and is blended with petrol, can be a vital revenue earner for the mills.
· Reducing the sugar output will increase the sugar prices, paying of cane arears.
Sandeep 6 years
Kindly review thanks
IAS Parliament 6 years
Try to include the disadvantages of producing
ethanol from sugarcane juice. Keep Writing.
Raj 6 years
Kindly Review. Thanks!!
IAS Parliament 6 years
Try to include flaws in the existing bail out
packages. Keep Writing.
