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Medium Term Outlook for Indian Agriculture: Sugar Sector. Roshan Tamak Business Head (Sugar), Olam Agro India Ltd. Global Sugar Industry. Brazil and India are the highest sugar producing nations in the world. Global per capita consumption of sugar. Indian Sugar Industry a snapshot.
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Medium Term Outlook for Indian Agriculture: Sugar Sector Roshan Tamak Business Head (Sugar), Olam Agro India Ltd
Global Sugar Industry Brazil and India are the highest sugar producing nations in the world
India: Area under Sugarcane cultivation *above numbers are in 000 Hectares There is no significant expansion in the acreage of sugarcane
India- Sugar recovery % Sugar recovery is more or less stagnant over the decade
India –Sugarcane yield /hec (In Tons per hectares) Sugarcane productivity is almost stagnant over the years.
Limitations in increasing productivity • Cyclicality in sugar Industry • Unpredictable climate • Depleting water resources • Crop competition and food security challenge • Land fragmentation and small land holdings • Depleting soil health/monoculture • Increasing cost of cultivation-inputs/labor etc • Improper sugarcane varietal mix and low sugar yield • Lack of focus on Cane research and development
India- State wise per capita consumption States with relatively lesser demand will soon catch up with the high sugar consumption Wide gap from 10-28 Kg/Person
India- Projected domestic sugar consumption Increasing demand expected to reach 30 million tons by 2020
Shared Vision Consumers Fulfill customers needs Farmers & Millers Policy Makers Self sufficiency to meet domestic demand Social welfare of stakeholders Contribution to India’s energy requirement Economic profit driven growth Risk and cost minimization Collaboration between each other Towards a more efficient sugar industry
Action Agenda • Implementation of sugar & cane price linkage formula ( Dr Rangarajan Committee) • Integration of Indian commodity exchanges with the world market • Stable trade policy-import/export (Timely decisions) • Mandatory support for Cogen Power (tariff support/REC benefit) • Implementation of Ethanol Blending policy (10% -recently announced) • Proper coordination for research and development (IISR,SBI,VSI,UPSCR) • Integration of all Govt schemes like SDF,NFSM,RKVY for the purpose of sugarcane development and infrastructure improvement • Water harvesting/drip irrigation to be taken up as a major initiative • Development of Micro entrepreneurs/custom hiring model • Training modules for growers/staff to be developed and implemented