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Sugar industry in india. Presented by : KAVITA TRIVEDI VAIDEHI TRIVEDI. introduction.
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Sugar industry in india Presented by : KAVITA TRIVEDI VAIDEHI TRIVEDI
introduction • The Indian sugar industry remains the second largest rural agro-industry, with a Rs. 700 billion annual turnover, contributing almost Rs. 22.5 billion to the central and state exchequer as tax, cess, and excise duty annually.. • Besides, the industry employs around 2 million rural skilled/semi-skilled workers, among others. • The Indian sugar industry is classified into organised and unorganised sector. Sugar factories belong to the organized sector and those who produce Gur and khandsari fall into unorganized sector which accounts for 20% of the total production.
Overview • Located in rural heartland, directly contributes to rural economic development • Sector supporting 50 million farmers & their families – around Rs. 55,000 crores cane price paid in 2010-11 • Generates employment for around 12% of the entire rural population (in major 9 sugar producing States) • Largest consumer and second largest producer in the world • World’s second largest sugar producer (24 million tonnes) with a total investment of $11000 million. Around 4 million hectares of the country (around 2.7% of the total cultivated area) is under sugarcane production with an average recovery around 10%.
Brazil is the largest producer of sugar in the world, and then next comes the India with more than 450 mills and produces 285,029,000 tons but India stands no 1 in the production of Gur and Khandsari and then next comes the china .
Manufacturing of sugar After the cane arrives at the mill yards, it is mechanically unloaded, and excessive soil and rocks are removed. The cane is cleaned by flooding the carrier with warm water ,that pass through strong jets of water and combing drums. At this point, the cane is clean and ready to be milled. The vapors from one body can thus boil the juice in the next one, a method called multiple-effect evaporation. Next, the syrupy solution is vacuum-crystallized to form sugar crystals. The remaining liquid is removed using centrifugaling and drying, and the sugar is packaged.
Types of sugar • .White sugar • Brown sugar • Liquid sugar
By products Bagasse:- obtained as a by-product of sugar cane processing, is composed of fibre, pith, non-soluble solids and water,95% of bagasse is used as fuel. Pulp and paper, boards, furfural and animal feeds are among the main products obtained from bagasse Ethanol :- . It is also a by product of sugar manufacture and it is mainly used as alcohol and for the purpose of fuel
Sugar- cooperative sector Sugarcane industries is seasonal in nature so, it is ideally suited to the cooperative sector. sugarcane is usually grown as a secondary crop as its industrial demand is very seasonal.
Ideal place for sugar mills sugar factories are situated only in the cane growing areas and almost within 25 kms distance from the sugarcane farms. However, proportion of area under sugar cane production is small relatively. As such, sugar factories are highly dispersed even in those areas that have an appreciable hectare under cane.
Growth promotional activitiesThe Indian government has announced their intention to fully liberate sugar sector in phases. Setting up of futures / forward market in sugar and has given approval to three exchanges for the purpose of forward trading - • To boost the export of sugar from the country the policy allows free export of sugar and factories can also undertake export of raw sugar in addition to mill white sugar.The Govt. has decided to deferment benefit of adjustment of releases of free sale sugar made for export purposes from 12 months to 18 months. • Also the taskforce for the Tenth Plan has rightly stated that there is a need to improve the sub optimal capacity of many sugar mills in the country and that emphasis should given for sugarcane productivity rather than to target increase in area under the cane crop.
Outlook Based on the past ten years’ growth in consumption and estimates from various independent sources , it is expected that in 2017 , the domestic sugar consumption would be approximately 28.5 millions MT. Given the high cost of imports and the strategic importance of food security. India would need to target its production in excess of domestic consumption. Given the past trend in production cyclicality , sugar equivalent to 1.5 months of consumption i.e. an additional 3.5 million MT of sugar would need to be produced by 2017. Therefore the sector has huge investment potential.
Sugar Mills Composition No. of factories in operation • No of Sugar Mills = 634 - Private = 282 600 - Public = 64 516 501 488 – Co-operative = 288 500 453 437 453 412 • Mills operating = 503 (current) 385 400 • State wise distribution 315 - UP = 132 – MAH = 147 300 215 – KAR = 50 174 200 – AP = 35 100 – TN = 38 • Contribution by 5 states 82% of the 0 total production. 60-61 70-71 80-81 90-91 96-97 00-01 05-06 06-07 07-08 08-09 09-10 • The growth in the Indian sugar industry has been more driven by horizontal growth (increase in number of units) rather than vertical growth ((increase in average capacity). • The number of factories has increased from 29 in 1930-31 to 488 in 2008-09; while the average capacity of the sugar mills has moved up from 644 ton per day in 1930-31 to ~3183 ton per day. The mills have capacity varying from 1,500 to 10,000 TCD. The capacities cannot be compared • with international average capacities due to the Indian sugarcane industry structure.
