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History
Indian mythology supports the fact it contains legends showing the origin of sugarcane. Today India is
the second largest producer of sugarcane next to Brazil. Currently there are about 4 million hectares
of land under sugarcane with an average yield of 70 tonnes per hectare.
India is the largest producer of sugar including traditional cane sugar sweeteners, khandsari and Gur
equivalent to 26 million tonnes raw value followed by Brazil in the second place at 18.5 million tonnes.
Even in respect of white crystal sugar, India has ranked No.1 position in 7 out of last 10 years.
The traditional sweeteners of India like Gur & Khandsari are consumed mostly by the rural population
in the country. In the early 1930's nearly 2/3rd of sugarcane production was used for the production of
alternate sweeteners like Gur & Khandsari. As accordingly because of the better standard of living
and higher incomes, the sweetener demand has shifted to white sugar. Currently 1/3rd of sugarcane
production is used by the Gur & Khandsari sectors.
In the year 1930 there was an advent of modern sugar processing industry in India which was started
with grant of tariff protection to the sugar industry. In the year 1930-31 the number of sugar mills
increased from 30 to 135 and in the year 1935-36 production was increased from 1.20 lakh tonnes to
9.34 lakh tonnes under the dynamic leadership of the private sector. In the year 1950-51 the era of
planning for industrial development began and Government laid down targets of sugar production and
consumption, licensed and installed capacity, sugarcane production during each of the Five Year Plan
periods.
Brief introduction
Sugar Industry is regarded second after the Textile Industry in India as per the agro-processing
industry in the country. The industry currently has 453 operating sugar mills in different parts of the
country. Indian sugar industry has always been a focal point for socio-economic development in the
rural areas. Today nearly 50 million sugarcane farmers and a large number of agricultural laborers are
involved in sugarcane cultivation and ancillary activities contributing to 7.5% of the rural population.
Indian Sugar Industry generates power for its own requirement and even gets surplus power for
export to the grid based on byproduct bagasse. There is even production of ethanol, an ecology
friendly and renewable energy for blending with petrol. Sugar Companies have been established in
large sugarcane growing states like Uttar Pradesh, Maharashtra, Karnataka, Gujarat, Tamil Nadu, and
Andhra Pradesh and are the six states contributing more than 85% of total sugar production in the
India. And 57% of total production is together contributed by Uttar Pradesh and Maharashtra. Indian
sugar industry has been growing horizontally with large number of small sized sugar plants set up
throughout India as opposed to the consolidation of capacity in the rest of the important sugar
producing countries and sellers of sugar, where there is greater concentration on larger capacity of
sugar plants.
factories usually belong to the organized sector and those producers who produce traditional
sweeteners fall into unorganized sector. Gur and khandsari are the traditional forms of sweeteners.
Taking raw sugar to a refinery for the process of filtering and washing to discard remaining
non-sugar elements and hue
Year
No. of factories in
operation
Installed Capacity
(Lakh tonne)
Actual Sugar
Production
(In Lakh tonne)
1950-51
139
16.7
11.0
1955-56
143
17.8
18.9
1960-61
174
24.5
30.2
1965-66
200
32.3
35.4
1973-74
229
43.1
39.5
1978-79
229
59.1
58.4
1985-86
339
72.7
70.2
1990-91
337
98.5
120.5
1995-96
415
127.6
164.3
1999-2000
423
161.8
182.0
2000-01
437
168.2
186.0
2001-02
433
176.8
185.3
2002-03
453
180.0
201.0
2003-04(Estimated)
461
185.0
170.0
Employment opportunities
Jobs in Indian Sugar Industry has created ample employment opportunities in rural India. Today the
Indian Sugar Industry has absorbed about 5 lakh rural people. The cultivation of sugarcane employs
about 4.5 core farmers which is the first phase of the sugar production. Indian Sugar mills may be
cooperatives, public or private enterprises. The industry today provides employment to about 2 million
skilled/semi skilled workers and others mostly from the rural areas.
People interested for Jobs in Sugar Industry should be a diploma holder in Mechanical or electrical
engineering along with the diploma in the sugar technology. At the entry level one can expect a
remuneration of Rs 6000-7000 per month and as with experience increases the pay may go up to Rs
6-15 lakh per annum. Sugar technologists are usually employed in sugar factories, alcoholic or nonalcoholic production plants or sugar research labs. The major recruiters in the sugar Industry are
IFFCO and National Federation of Co-Operative Sugar Factories.
Pollution
The Indian Sugar Industry comes under the classification of "Red" which represents highly polluting
industries.
Latest developments
ISEC is successful in capturing new markets with strategic advantage like Srilanka, Pakistan, Russia,
Indonesia etc. There is marvelous achievement for the first time, Indian white sugar was marketed by
ISEC for direct consumption in Europe while in the past Indian sugar shipped to Europe was diverted
to other destinations. In the year 2000, 10,000 MT was exported in containers for direct consumption
in the European countries.
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 other 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.