Indian Sugar Industry

By: EconomyWatch   Date: 30 June 2010

About The Author

EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

EconomyWatch, Content Team

 

  • Dot Div
  •      

Sugar Industry in India is well developed with a consumer base of more than billions of people. It is also the second largest producer of sugar in the world.

There are around 45 millions of sugar cane growers in India and a larger portion of rural labourers in the country largely rely upon this industry. Sugar Industry is one of the agricultural based industries. In India it is the second largest agricultural industry after .

Statistics On Sugar Production

As to the statistics there were a total number of 571 sugar factories in India as on March 31,2005 compared to 138 during1950-51. These 571 sugar mills produce a total quantity of 19.2 million tones (MT). Sugar production in India increased from 15.5 MT in 1998-99 to 20.1 MT in 2002-03.

Department of Agriculture and Co-operation, sugarcane production in 2004-05 is estimated at 232.3 MT from 237.3 MT in 2003-04. Sugarcane production is expected to reach 257.7 MT in 2005-06.

Sugar Production In states

The following table shows level of sugar production (In Lakh Tonnes) in Indian States:

State 2002-03 2003-04 2004-05 Estimated
Uttar Pradesh 58.74 46.08 50.32
Maharashtra 61.64 31.99 22.29
Karnataka 17.98 11.57 13
Tamil Nadu 17.04 11.9 9.84
Andhra Pradesh 11.88 8.81 9.75
Gujarat 12.38 10.77 8.32
Haryana 5.99 5.86 4.03
Uttaranchal 4.59 3.93 3.82
Punjab 5.11 3.88 3.37
Bihar 4.21 2.77 2.77
Madhya Pradesh 0.85 0.94 0.85
Other 0.91 1.09 1.58

 

The sugar production in the states largely depend upon monsoon. From 1998-03 good monsoon resulted a larger production of sugar in the country.

Sugar Pricing:

Government of India fixes Statutory Minimum Price (SMP) for sugarcane according to Clause 3 of the Sugarcane Order. This statutory Minimum Price is designed through the consent of Commission for Agricultural Coast and Prices (CACP) and respective state Governments. For the year 2004-05, the rate was fixed at Rs. 74.50 Per quintal with a basic recovery of 8.5%.

Indian Government on Sugar Industry

The following policy initiatives are taken to boost the Sugar industry:

  • Government declared the new policy on August 20,1998 with regards to licenses for new factories, which shows that there will be no sugar factory in a radius of 15 km.
  • Setting up of Indian Institute of Sugar Technology at Kanpur is meant for improving efficiency in the industry.
  • In the year 1982, the sugar development fund was set up with a view to avail loans for modernization of the industry.

  • Dot Div
  •      

Related News

Is It Worth Keeping The Pirates At Bay?
The Internet and Social Media
Is It Worth Keeping The Pirates At Bay?
23 May 2012
A Global Health Care Remedy – Why We Must Fix High Drug Prices: Joseph Stiglitz
Healthcare Industry
A Global Health Care Remedy – Why We Must Fix High Drug Prices: Joseph Stiglitz
22 May 2012
Greece Economy
Greece Must End Its Doomed Marriage With The Eurozone: Nouriel Roubini
21 May 2012
Advice for Goldman Sachs Social Media Manager
Companies & Investments
Advice for Goldman Sachs Social Media Manager
18 May 2012
Can Hollande Change the Balance of Power in Europe? : Zaki Laidi
Europe Economy
Can Hollande Change the Balance of Power in Europe? : Zaki Laidi
17 May 2012
What the West Can Learn From Islamic Banking
Banking and Finance
What the West Can Learn From Islamic Banking
16 May 2012

See more related news

Most Popular in Sugar Industry

Related Links
blog comments powered by Disqus