International Sugar Organisation

International Sugar Organisation

Context: India Hosts the 64th Council Meeting of the International Sugar Organisation. 

International Sugar Organization

• An intergovernmental body based in London, it was established under the International Sugar Agreement of 1968 and dedicated to enhancing the global sugar market.
• Membership of around 88 nations including India.
• The ISO is the only worldwide forum for the exchange of views by major producing, consuming and trading countries at an intergovernmental level.
• The ISO administers the International Sugar Agreement (ISA), 1992, which is related to international cooperation in sugar-related matters.
• Encourages expanded sugar use, especially in non-traditional applications.
• However, it lacks the authority to regulate the global sugar trade through price-setting or export quotas.
• Earlier, India hosted the 41st session of the ISO Council Meeting in 2012.

Status of the Sugar Industry in India

• India is the largest consumer and second-largest producer of sugar globally.
• 15% share in global sugar consumption and a robust 20% production rate.
• Nearly 5 crore farmers are engaged in the cultivation of sugarcane.
• Two primary production regions:
• Northern belt encompassing Uttar Pradesh, Bihar, Haryana, Punjab and Bihar.
• Southern belt comprising Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh.
• The southern region benefits from a tropical climate, which is conducive to higher sucrose content in crops, resulting in increased yields per unit area compared to northern India.

Government initiatives

• The Government has encouraged sugar mills to divert sugar to ethanol and export surplus sugar so that mills may have better financial conditions to continue their operations.
• The National Policy on Biofuels 2018 provides an indicative target of 20% ethanol blending under the Ethanol Blended Petrol (EBP) Programme by 2025.
• Fair and Remunerative Price (FRP): The government has set the FRP for the 2023-2024 sugar season at Rs. 315 per quintal.
• The Global Biofuel Alliance (GBA) was recently launched by world leaders under India’s G20 presidency to expedite the global uptake of biofuels.
• The workshop on ‘Sugar and Bio-Energy: Emerging Vistas’ being organised during ISO includes various insightful sessions such as:
o Sustainability through Diversification.
o Mechanization & Modernization of the Sugar Sector.
o Digitization of the Sugar Sector.
o Global Demand and Supply of Sugar.
o Green Hydrogen.

Global Biofuel Alliance (GBA)

• The alliance brings together major biofuel producers and consumers, such as the US, Brazil, and India.
• The GBA aims to strengthen the global biofuels trade for a greener, sustainable future.
• Nineteen countries and 12 international organisations have already agreed to join or support the GBA.