Sugar has been produced in India since ancient times and the sugar industry is a big business in India. At present, this is the second largest agro-based industry of India after cotton textile industry.
White sugar is not good for health. Different health organizations have different recommendations for the amount of sugar you should limit yourself per day. But they all agree that there’s room for some sugar in a healthy diet. Hence, the consumption of sugar in this nation should be meant for the poorer people of India.
So, the Government of India can impose GST at 12% on sugar. Therefore, sugar should get directed into the bottom of the pyramid. Rich people and people with diabetes will not consume sugar. Sugar that goes into food preparations, pharmaceuticals and related will help the sugar economy. So the Government of India will realise a higher revenue along with State Governments.
Sugar production in the nation is higher than its requirement. Sugar draws a lot of energy as well as water from the system.
Soil nutrients like Urea are subsidised and therefore the overall costs to the nation are high. It would be therefore good to regulate the sugar production economy by imposing a necessary condition that all sugarcane farmers should form themselves into a producer company.
Every sugarcane mill should be buying from a producer company and not necessarily from individuals. Individuals and groups can continue to make jaggery with it or give it to vendors of sugarcane juice.
The sugar mills are well organised and producer companies can be supported by the state and central governments by channelling the necessary infrastructure and assessment.
The sugarcane economy is working at the optimum efficiency level. The producer, the farmer and the delivery system are well organised and all the sugar cane producers are now in the formal payment system. Sugar companies have established accounting relationships with the sugarcane farmers. The beauty of the sugar mill system and relationship with the farmers is that 100% of the produce is purchased with all facilities given to the producers from harvesting to delivery. This ecology is great for the nation.
India needs to have sweets for the poor. They can make it themselves in home industries. Therefore, the Indian economy should drive the sugar economy into making the right chemistry for sweets to reach the poor every week.
Sweets mean celebrations but overindulgence in white sugar has health issues. The calories required by the labour class can be enriched with energy bars, so that nutrients are absorbed by a low-income family. They need to consume it directly rather than through the cooking process. The food processing facilities that are required can follow the strategy of FMCG giants.
There should be a baker in every village or can be created.
A value chain can emerge from the sugar industry.
The number of farmers who are employed in the sugarcane growing can be incentivised to move to the quantum of required production of what the nation needs in a regulated way by incentivisation, motivation and also technology transfer especially crops like soya bean, green gram and ground nuts.
