The Sugar Industry Deserves Special Appreciation!

India has, for centuries, been globally recognized as a nation driven by industry and agriculture—a distinction that continues even today. Fundamentally, these two sectors remain the primary pillars of the economy. The third complementary pillar that connects them is commerce. Together, these three sectors essentially define the entire economic framework.

However, about two decades ago, a sudden realization led to the inclusion of the service sector as a major pillar of the economy. This gave rise to concepts such as the service tax. But one must pause and reflect—if manufacturing, agriculture, and commerce did not exist, could the service sector sustain itself? Can it truly have an independent existence?

Without these foundational sectors, whom would the service sector serve? Yet, how often is this question seriously considered? Whenever governments begin to overemphasize the service sector at the cost of manufacturing, agriculture, and commerce, the economy begins to decline. This decline, however, is subtle—much like slow poisoning—and therefore often goes unnoticed.

Even in pre-independence India, when there was no unified national government, manufacturing, agriculture, and commerce flourished. Historical evidence supports this. As noted by Shashi Tharoor in his book An Era of Darkness: The British Empire in India, India’s share of global GDP in the 18th century was between 27% and 30%, which declined drastically to just 3% during British rule.

Post-independence, several positive changes stimulated industrial growth. However, the pace of progress has not matched expectations. Greater focus should have been placed on agriculture and agro-based industries.

Unfortunately, the sugar industry and its allied sectors have long remained neglected—and continue to suffer even today. There is excessive control over raw materials, finished products like sugar, and even by-products. Despite investments running into hundreds of crores, there is no assurance or stability, and operational periods are limited to barely three to four months a year.

There is no guarantee of adequate raw material supply, nor certainty that the produced output will be fully sold. In such a scenario, policy unpredictability adds to the chaos—no one knows when a new government directive might be issued. Even the exact start date of the crushing season remains uncertain. Once the season begins, sudden directives follow—such as limiting ethanol production or restricting its production from sugarcane juice.

In such an unstable environment, how can this industry plan effectively? The issue of funding becomes even more complex under these circumstances.

Today, the cost of producing sugar has crossed ₹40 per kilogram—a fact acknowledged by the government. Yet, the Minimum Selling Price (MSP) remains fixed at just ₹31 per kilogram. Sugar is classified as an essential commodity. On the other hand, essential medicines are often priced at four to five times their production cost—is this not a contradiction?

Despite such fluctuating and challenging conditions, the Indian sugar industry continues to endure. It complies with every government directive, no matter how sudden. It navigates countless obstacles and continues to move forward. At present, it also faces the looming shadow of geopolitical tensions, particularly conflicts in the Gulf region.

For all these reasons, the industry truly deserves appreciation. But for how long can this continue? That question remains.

India’s energy security is increasingly at risk due to tensions in the Gulf. In this context, this issue highlights how the sugar sector can play a crucial role in strengthening India’s energy security. Articles published in SugarToday’s Mar 2026 edition, and written by experts such as B. B. Thombre and Dilip Patil offer valuable insights.

The government’s approach towards biofuels is indeed positive. However, there is a pressing need for more dynamic, consistent, and sustainable policy measures to fully unlock the sector’s potential.