The impact of the crisis in the Strait of Hormuz has now begun to show clearly in India's sugar industry. Disruptions in sulphur imports have led to a sharp rise in prices, increasing production costs for sugar mills.
Due to disruptions in imports from Morocco and other supplying regions, sulphur prices have surged dramatically over the past one-and-a-half months—from around ₹15,000 per tonne to nearly ₹60,000 per tonne. This sudden increase has created new challenges for sugar mills across the country.
Plastic Industry Also Affected
The Hormuz crisis has also impacted the movement of petroleum tankers, resulting in a rise in the prices of plastic granules. This has affected the food and packaging sectors, which rely heavily on plastic bags and packaging materials.
Uttar Pradesh Leads in Ethanol Production
Sugar mills in Uttar Pradesh are currently producing approximately 170 crore litres of ethanol. Supplies are being sent to several states, including West Bengal, Delhi, Bihar, and Odisha.
Sugar Mills May Adopt Sulphur-Free Technology
With sulphur becoming increasingly expensive and difficult to procure, sugar mills are expected to accelerate the adoption of sulphur-free sugar manufacturing technology. The current crisis may encourage greater investment in cleaner and more sustainable production methods, reducing dependence on imported sulphur in the future.
Impact of the Hormuz Crisis Now Visible on India's Sugar Industry
The impact of the crisis in the Strait of Hormuz has now begun to show clearly in India's sugar industry. Disruptions in sulphur imports have led to a sharp rise in prices, increasing production costs for sugar mills.
Due to disruptions in imports from Morocco and other supplying regions, sulphur prices have surged dramatically over the past one-and-a-half months—from around ₹15,000 per tonne to nearly ₹60,000 per tonne. This sudden increase has created new challenges for sugar mills across the country.
Plastic Industry Also Affected
The Hormuz crisis has also impacted the movement of petroleum tankers, resulting in a rise in the prices of plastic granules. This has affected the food and packaging sectors, which rely heavily on plastic bags and packaging materials.
Uttar Pradesh Leads in Ethanol Production
Sugar mills in Uttar Pradesh are currently producing approximately 170 crore litres of ethanol. Supplies are being sent to several states, including West Bengal, Delhi, Bihar, and Odisha.
Sugar Mills May Adopt Sulphur-Free Technology
With sulphur becoming increasingly expensive and difficult to procure, sugar mills are expected to accelerate the adoption of sulphur-free sugar manufacturing technology. The current crisis may encourage greater investment in cleaner and more sustainable production methods, reducing dependence on imported sulphur in the future.
Sugar Mills Take a Major Decision
In view of the current situation, five sugar mills in Uttar Pradesh have decided to install sulphur-free sugar production plants during the current year. At present, out of the state's 122 sugar mills, around 15 mills are already producing sulphur-free sugar.
According to Prof. Narendra Mohan, former Director of the National Sugar Institute, growing consumer awareness about health and wellness has led to a rapid increase in demand for sulphur-free sugar. In such circumstances, the transition towards cleaner sugar production technologies has become a necessity rather than an option.
Shortage of Bags at Procurement Centres
According to Anup Sachan, in-charge of the Ghatampur procurement centre, the sharp rise in plastic bag prices has forced procurement agencies to look for alternative packaging solutions. As a result, efforts are being made to arrange empty jute bags instead of plastic bags.
So far, nearly 3,000 bags have been collected. After completing the necessary registration and documentation procedures on the designated portal, the procurement process will move forward.
Suggested Subheading
Rising sulphur and packaging costs prompt Uttar Pradesh sugar mills to accelerate adoption of sulphur-free technology and alternative packaging solutions.
