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What are the major challenges faced by sugar industry in India?

Last Updated : 16 Jun, 2023
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Industries of sugarcane in India have been shifting to southern and western states because of the higher sucrose content in sugarcane which was produced in these areas. Some major challenges faced by the sugar industry in India include old and inefficient methods of production, varying levels of sucrose content, and also the seasonal nature of sugarcane.

Sugarcane Industry in India

Sugarcane is a weighty, low-esteem, weight-losing, and short-lived unrefined substance utilized in India’s sugar industry. India stands second as a world maker of sugar yet possesses the primary spot in the development of gur and khandsari. Sugarcane can’t be safeguarded endlessly because of the deficiency of sucrose content. Moreover, it can’t be shipped over significant stretches since any ascent in transportation expenses would increment creation costs, and the sugarcane could dry out en route.

India delivered 33 million metric lots of sugar in 2017/2018, making it an unmistakable player in the worldwide sugar exchange. Sugar yield is at an unsurpassed high in the nation, and it is on target to outperform Brazil as the world’s biggest sugar maker. Sugar yield in India expanded by 11.5 percent from 2014 to 2015 because of solid stick harvests.

This flood in yield brought about a huge excess of sugar in India, with factories neglecting to pay laborers respectable compensation. In the north, Uttar Pradesh, Bihar, Haryana, and Punjab, and in the south, Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh, the sugar business is broadly scattered. In contrast with North India, South India has a tropical climate that is helpful for expanded sucrose focus, bringing about better return per unit region.

Challenges Faced by Sugar Industry

The challenges which are faced by the sugar industry in India include:

Questionable Production Output

Sugarcane needs to contend with a few other food and money crops like cotton, oil seeds, rice, and so forth. This influences the stockpile of sugarcane to the plants and the development of sugar likewise changes from one year to another causing vacillations in costs and prompting misfortunes in the midst of abundance creation because of low costs.

Low Yield of Sugarcane

India’s yield per hectare is very low when contrasted with a portion of the significant sugarcane-delivering nations of the world. For instance, India’s yield is just 64.5 tons/hectare when contrasted with 90 tons in Java and 121 tons in Hawaii.

Short Smashing Season

Sugar creation is an occasional industry with a short smashing season-changing regularly from 4 to 7 months in a year. It causes monetary misfortune and occasional work for laborers and the absence of full use of sugar plants.

Low Sugar Recuperation Rate

The typical pace of recuperation of sugar from sugarcane in India is under 10% which is very low when contrasted with other significant sugar-creating nations.

High Production Cost

The significant expense of sugarcane, wasteful innovation, uneconomic course of creation, and weighty extract obligation bring about the significant expense of assembling. A large portion of the sugar plants in India are of little size with a limit of 1,000 to 1,500 tons each day consequently neglecting to exploit economies of scale.

Government Strategy and Control

The government has been controlling sugar costs through different arrangement mediations like commodity obligation, the burden of stock breaking point on sugar plants, changes in meteorology rule, and so forth, to adjust supply request crisscross. Be that as it may, these controls have brought about unremunerative sugar costs, expanding unpaid debts for sugar factories and duties to be paid to sugarcane ranchers.

Sugarcane rivals an assortment of other food and money crops, including cotton, oil seeds, rice, and others. This affects the accessibility of sugarcane to plants, and sugar yield changes from one year to another, delivering value unpredictability and misfortunes in the midst of surplus creation attributable to low estimates.

In contrast with other of the world’s driving sugarcane-delivering nations, India’s result per hectare is really low. For instance, India’s creation is simply 64.5 tons per hectare, however, Java’s yield is 90 tons and Hawaii’s yield is 121 tons. Sugar creation is an occasional industry with a somewhat concise pulverizing season that endures somewhere in the range of 4 and 7 months consistently. It brings about monetary misfortunes for laborers, as well as an absence of full usage of sugar plants.

In India, the typical pace of sugarcane sugar recuperation is under 10%, which is very low when contrasted with other significant sugar-creating nations. The significant expense of assembling is because of the significant expense of sugarcane, wasteful innovation, uneconomic creation processes, and costly extract charge. Most sugar factories in India are little, with limits going from 1,000 to 1,500 tons each day, they can’t profit from economies of scale.

To adjust the stockpile request hole, the public authority has utilized an assortment of strategy mediations like commodity obligations, stock cutoff points on sugar factories, and changes in meteorological standards, among others. In any case, these limitations have brought about low sugar costs, causing sugar plants to fall behind on installments and sugarcane producers to own contributions.

In India, almost 50% of the all-out sugarcane creation is redirected to Gur and Khandsari ventures which causes a deficiency of natural substances for the business. A greater part of the factories are old and utilize out-of-date hardware. The executives and work issues further total the circumstance, making the units uneconomic and wiped out. The sugar processing plants additionally deal with issues in discarding the results like bagasse and molasses. This industry is occasional in nature as the unrefined substance is accessible just at the hour of collection. There is a huge span between the sugar industrial facilities and the fields. There is a loss of sucrose on the off chance that not squashed within 24 hours.

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Frequently Asked Questions

Q 1. What are the major challenges faced by the sugar industries in India?


Major challenges which are faced by sugar industries in India include:

  1. Low yield of sugarcane
  2. Short crushing season
  3. Low rate of recovery

Q 2. Why is the sugar industry significant?


The memorable planting of sugarcane all over the planet fundamentally affects biodiversity. A huge worldwide market for sugarcane subordinates keeps the business blasting. Sugar is pervasive in the cutting edge diet and progressively a wellspring of biofuels and bioplastics.

Q 3. Why sugar industry is appropriate for an agreeable area?


The ranchers are taken part in the development of the sugarcane, and when it is procured, a group of ranchers set up a factory and produce sugar. So this participation among the ranchers assists them with bearing benefits and misfortunes together. Subsequently, it is a helpful area.

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