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Indiaisthelargestsugarproducingcountryintheworld,with22%ofworldsshareofsugar production.Itsisthe2ndlargestagrobasedindustryinthecountry.Itranks3rdlargestlargest industryintermsofcontributintothenetvalueaddedbymanufactureandemploysnearly3.5lakh workers,besidesceatingindirectemploymnetof45millionfarmersofsugarcane,thevarious agenciesofdistributivetrade,andthroughsubsidaryindustriessuchasconfectionary. Sugarcanecultivationaccountsfor3%oftotalcultivatedareaandcontribues7.5%ofgross valueofagricultureproduction.Itisalsoimportantsourceofexcisedutyforthecentral government.Therearenow571sugarfactoriesinIndiawithtotalinsatledcapicityof19.2million tones. ProgressinPostIndependenceperiod Duringthe1950'stheproductionofsugarwaslittlemorethen1milliontonnes.Thegoenment providedtheincentivesforhigerproductionandtheoutputprogressivelyincreasedtonearly4 milliontonnesin197071,itfurtherroseto16.

1milliontonnesin200102
30
2008, 27.9

25

2007, 24.2

20

2003, 18.9 2001, 18.5 2009, 18.4 2006, 18.5 2010, 17.3 2004, 16.3

15
1991, 11.8

2005, 13.3

10

5
1951, 1.1

1971, 3.7

0 1940

1950

1960

1970

1980

1990

2000

2010

2020

Governmetcontrolsincludingpricecontrlisimportantfactorforproduction.Sugarconsuptionnot increasingattherateofincreaseofsugarproduction.Averagugarproductio1617milliontonnes peryear.Sowehavehugesurplusstocksofsugar.Despitehugestocks,thecountrywasunableto exportmuchbeacusethepriceofIndiansugarwasmuchhigerthantheinternationalprice.Sugar exportinnowshowinganincreasingtrend.In200304itstoodat1.3milliontonnes. ProblemsofSugarIndustry Theeratictrendoftheproducationofsugarisattributedtothefactthatitisaagrobasedindustry anditsoutputfluctuateswiththevagariesofmonsoons 1) lowyieldofsugarcane,largeareabutyieldlow,64.5tonnes/hactarecomaredto90tonnes/ hactareinjava. 2) Shortcrushingseason.Millreamainsidlecreatingfinancialtroblesfortheworkers. 3) Fluctuationproduction. 4) Hascompetionfromoilseeds,ricecotton. 5) Lowrateofrecovaery<10%.

6) highcostofproduction. Highcostofsugarcane. Inefficienttecnology. Uneconomicprocessofproduction. 7) Diversiontoethnol,biofuel. 8) Smallandunecoomicsizeofthemills. 9) Oldandobsoletemachinery. 10) Competitionfromgurandkhandashiri. Location dependuponwieghtloosingagriculturalrawmaterial,asthesugarproducedifonly912%ofthe wieghtofthecaneused,caneismoredifficulttotrasportanditssucrosecontentdeteriorate.This factormakesitarawmateriallocalizedindustry. Inrecenttimestherehasbeenashiftofthisindustrytowardssouth. Twomajorareas. UP,Bihar,Haryana,Punjab. Maharashtra,Karnataka,TamilNadu,AndhraPradesh. 1st)MaharashtraisthelargestproducerithasovertakenUttarpradesh.Importantcentersin maharashtraareAhmadnagar(leading),Kohlapur,Solapur,Satra,Pune,Nashik. Reasonforovertake Largesucrose. Largecrushingseason. 1/4thmillsbut1/3rdtotalproduction(UPhasmoremillsbutaresmallandproduceless) 2nd)UPisthetraditionalproducerofsugar,importancedecrasing,lost1stpositiontomaharashtra. Twomainregionshere1)EastUPGorakhpur.2)UpperGangaPlainMeerut,Saharanpur, Muzaffarnagar,Bijnor,Moradabad. (BiharChamparan,Muzafarpur) 3rd)Tamilnadushownphenomenalprogressinpast6years,highyield,highsucrosecontent,high recoveryrateandlargecrushingseason,highestyieldofsugar. ImportantcentersCoimbtore,Tiruchirapalli. 4th)KarnatakaBelagam,Shimoga. 5th)AndhraPradesheastandwestgodavri,Vizak.

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