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The sugar cooperative industry is reeling under problems caused by large quantities of unsold stocks, and this year its going to get worse.
No wonder they are up in arms against the FSSAI’s plans to enforce a warning label on all high sugar products, and products with added sugar. Read about it here: https://www.financialexpress.com/market/sugar-sector-to-oppose-fssai-move-on-labelling-products-with-sugar/1625312/
However, the industry is fighting a losing battle. All their protestations about sugar not being the culprit are merely a repeat of the arguments used by the PepsiCo’s and Coca Colas of the world for the last 25 years. However, the soda majors realised that they have lost the battle, and are quickly diversifying away from high sugar products, towards healthier food product businesses.
The solution for the sugar cooperatives in India is alcohol and bottled methane. Not only will it solve the sugar oversupply problem, but will also greatly increase the profitability of the sugar industry.
Ethanol feeds into both the fuel and liquor industry, and the bagasse can easily feed bottled, purified, and compressed methane plants. Unlike other parts of the world, India has an extensive and ubiquitous bottled cooking gas distribution and sales network. The realisations are excellent; a dollar (Rs 65) per liter of ethanol, and a dollar per kilo of methane. The realisation from the manure and the carbon credits plus green subsidies is an added bonus.
Also, for both ethanol and bio methane, financing at very soft terms is abundantly available. I know some people who could help with that.
It is high time the sugar industry saw the writing on the wall and used it as an opportunity to change gears into a much more profitable business.
