India election 2019: How sugar influences the world's biggest vote
When Prime Minister Narendra Modi held a recent election meeting in the northern Indian state of Uttar Pradesh, he was compelled to make a promise relating to sugar, a diet staple.
Farmers who grow cane in the politically crucial state ruled by Mr Modi's Bharatiya Janata Party (BJP) were angry because sugar mills had not paid their dues in time. They held protests and blocked railway tracks. "I know there are cane dues. I will make sure every penny of yours will be paid," Mr Modi told the audience.
India's sugar mills are bleeding money and collectively owe billions of dollars to 50 million cane farmers , many of whom haven't been paid for nearly a year. Niti Ayog, a government think tank, says the arrears have reached "alarming" levels. More than 12 million tonnes of unsold sugar have piled up in factories. There is little incentive to export more as India's sugar price is higher than the international price.
Sugar is a serious business in India. Around 525 mills produced more than 30 million tonnes of sugar in the last crushing season, which lasted from October to April. This makes it the world's largest producer, unseating Brazil. A large number of mills are run by cooperatives where farmers own shares proportional to the land they own and pledge their produce to the mill.
That's not all. Some 50 million farmers, tightly concentrated geographically, are engaged in cane farming. Millions more work in the mills and farms and are engaged in transportation of cane.
As with much of India's politics, cane growers appear to be a reliable "vote bank". Uttar Pradesh and Maharashtra, which together produce 60% of the country's sugar, send 128 MPs to the parliament. The price of cane can swing votes in more than 150 of the 545 seats in the ongoing general election, according to one estimate. Sugar is possibly the "most politicised crop in the world”
Indians are also voracious consumers of sugar. The bulk of the supply goes into making sweets, confectionary and fizzy drinks that are beginning to contribute to a rising obesity problem, like elsewhere in the world.
We need differential pricing for sugar. Cheap sugar should be only provided to people who can't afford it. The rest should pay a higher price
"Otherwise, the industry will collapse, and farmers will die. Even politicians will not be able to save it."








