0.1930
900 319 0030
x

14/03/2019 - Government Policies

iasparliament Logo
March 14, 2019

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.

 

 

3 comments
Login or Register to Post Comments

IAS Parliament 5 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 5 years

Kindly review thanks

IAS Parliament 5 years

Try to include the disadvantages of producing ethanol from sugarcane juice. Keep Writing.

Raj 5 years

Kindly Review. Thanks!!

IAS Parliament 5 years

Try to include flaws in the existing bail out packages. Keep Writing.

ARCHIVES

MONTH/YEARWISE - MAINSTORMING

Free UPSC Interview Guidance Programme