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History

Sugar is made from sugarcane, and was discovered thousands of


years ago in New Guinea. And then the route was traced to India
and Southeast Asia. India was the first to begin with the production
of sugar following the process of pressing sugarcane to extract juice
and boil it to get crystals. The government of India in 1950-51 made
serious industrial development plans and has set many targets for
production and consumption of sugar. These plans by the
government projected the license and installment capacity for the
sugar industry in its Five Year Plans. India is well known as the
original home of sugar and sugarcane.

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

India is the largest sugar consumer and second largest producer of


sugar in the world according to the USDA Foreign Agricultural Service.
Indian Sugar Industry has total turnover of Rs. 500 billion per annum
and contributes almost Rs. 22.5 billion to central and state exchequer
as tax, cess, and excise duty every year according to the sources of
Ministry of Food & Government of India.

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.
Types of Sugar Industries in India

The Sugar industry In India has two sectors including organized and
unorganized sector. The Sugar 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.

Manufacturing Process followed by the Sugar Industry:

Extracting juice by pressing sugarcane

Boiling the juice to obtain crystals

Creating raw sugar by spinning crystals in extractors

Taking raw sugar to a refinery for the process of filtering and washing to discard remaining nonsugar elements and hue

Crystallizing and drying sugar

Packaging the ready sugar

Size of the industry


Today India has 453 sugar mills, those constituting 252 mills from the Co-operative sector and 134 Mills
from the private sector. And there are boosting 67 mills in the Public sector. As according to the statistics
there is total number of 571 sugar factories in India as on March 31, 2005 compared to 138 during 195051. These 571 sugar mills have a production of total quantity of 19.2 million tonnes (MT). There is an
increase in the Sugar production in India from 15.5 MT in 1998-99 to 20.1 MT in 2002-03.

Total contribution to the economy/ sales


Growth of India's sugar industry
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

Source: Indian Sugar Mills Association

Top leading Companies

Balrampur Chini Mills Ltd.

Bajaj Hindustan Ltd.

Andhra Sugars Ltd.

Thiru Arooran Sugars Ltd.

Dhampur Sugar Ltd.

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 non- alcoholic
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.

INDIAN SUGAR INDUSTRY AT A GLANCE IN 2012 2013


Indian sugar production has reached 188 lakh tons by end Feb13 which is a tad below last years output
by 0.31%. According to the Indian Sugar Mills Association estimates about 246 lakh tons was produced

for the sugar season 2012-13. Indian sugar production is poised to increase to 29.8 million metric tons in
the next year due to an expected increase in sugarcane production. With a surplus sugar production and
strong export demand for 2012/13, India will continue to be a net exporter of sugar for the second
consecutive year, with exports likely to reach as much as 2.5 million tons. Continued strong demand from
bulk consumers will push sugar consumption to 26.5 million tons.
Sugar production had for a third consecutive year strong growth in 2012/13 after moving through a
downward cycle in 2008/09 and 2009/10. India's total centrifugal sugar production in 2012/13 was 29.75
million metric tons, which includes 435,000 tons of Khandsari sugar. In 2012/13 gur production was higher
at 4.4 million tons due to firm prices. Sugar production till March-end of the current 2012-13 sugar year is
down 2 per cent at 23.05 million tonne, the Indian Sugar Mills Association said. In the corresponding last
year, sugar output stood at 23.45 million tonnes. Average recovery or the amount of sugar produced from
the cane crushed stood at 10.09 per cent during the current season, about 0.2 per cent lower than last
year.

Maharashtra has produced 7.7 million tonnes of sugar,


about 4 per cent lower than last year. In Uttar Pradesh,
sugar output stood at 6.75 million tonnes, marginally
higher than corresponding last years 6.67 million
tonnes. Karnataka has produced 3.29 million tonnes of
sugar till March 2013, about 7 per cent lower than last
year. Tamil Nadus sugar output is down 3 per cent at
1.35 mt. ISMA has estimated that sugar output is 24.6
million tonnes for the 2012-13 season, marginally lower
than 26 mt produced in the previous year.

INDIAN SUGAR INDUSTRY AT A GLANCE IN 2011 2012

For 2011-2012, India was expected to produce about 25-26 million tonnes of sugar, according to Industry
based data. But the country had produced 24.3 million tonnes in 2010-11.

India's domestic demand for sugar is almost 21-22 million tonne and the balance is available for exports.
Maharashtra, India's largest sugar producer, may miss its sugar production target of about 9.3 million
tonne this season as cane yields are seen falling with farmers probably shifting to other crops due to
unfavourable climatic conditions and delayed monsoon.

Export of the first tranche in the new season


has started under the open general licence.
Around 10 factories have got permits as in
December , 2011 to export sugar. Probable
Chinese imports of sugar from India, in order to
shore up their exhausted stocks may have a
positive impact on Indian prices.
Other than China, India is expected to sell sugar
to Indonesia, east Africa and West Asia.

INDIAN SUGAR MILL ASSOCIATION

ISMA is the oldest industrial association in the country which was established in 1932 when tariff

protection was granted to the industry. It is recognized by the Central and State Governments as the
central apex organization to voice the cause of the sugar industry. Sugar mills established in the private
sector as well as the public sector are eligible to become members of ISMA. Its total strength of
membership as on date stands at 237 and accounts for about half of the countrys total sugar production.
ISMAs history is mostly synonymous to the growth of the sugar industry in India which also began in early
1930's.
ISMA is an apex organization and maintains close contacts with all regions in India through a network of
regional associations and with international organizations and associations through international bodies.
ISMA is the interface between the industry and Government on matters relating to sugar policy, statistics
on production, sales, exports/ imports, prices, etc.

Organization
ISMA maintains database for the sugar industry which is
shared with all the member factories, media and also various
Government organizations. The association publishes a
monthly journal, 'Indian Sugar', as well as yearly publications
called 'Indian Sugar Year Book- Vol 1', which includes List of
sugar mills in India, Bangladesh, Pakistan, Nepal and Sri
Lanka giving all relevant information about each sugar factory.
A statistical handbook is also prepared every year on
production, prices, sales, exports/imports, etc.
India had entered the sugar export market for the first time in the year 1957 which was entirely with efforts
and on the initiative of ISMA. ISMA itself then undertook export of sugar as the export agency of the
Government for which a separate wing was started. The office of the association functions through its
Executive Committee, Governing Council and various standing sub-committees on specific issues.
Special cells have also been created to provide guidance and help to the members on important topics.

ISMAs R&D Cell about sugarcane has successfully identified promising sugarcane varieties in improving
sugarcane productivity which received recognition from various research institutes and Government
organizations, etc. The results have been encouraging in the recent two years. ISMA is the member of
several International industry associations including International Sugar Organisation, World Sugar
Research Organisation, World Association of Beet and Cane Growers and Global Alliance for Sugar
Trade Reforms and Liberalisation. India is largest consumer of sugar and 2nd largest producer in the
world.

Membership
Any person in the private / public sector owning or managing one or more factories worked by steam,
water, electric and/or other power for the manufacture of sugar by vacuum pan process shall be eligible
for the membership of the Association in respect of each such mill or factory. ISMA'S statistical services
maintain a global and domestic agricultural market intelligence, key indicators, outlook analysis, a wealth
of data on sugarcane and its by-products. Reporting mainly includes Indian current scenario on
sugarcane acreages, world sugar forecasts, harvesting and crushing reports, historical detailing on
acreages/ yields/production/utilisation/stock position/ policies and related data upto State/Country level.

Since, the sugar mills in India consume their own bagasse to


run their mills during the season and generate steam to run the
boilers and turbines; they generate power to run their plants.
Surplus energy can be exported mostly to the grid of
distribution licensees. The Central Electricity Regulatory
Commission (CERC) is main central body which usually
regulates the various aspects of generation and supply system
at national levels. Besides CERC, there are other State
Regulatory Commissions in each and every State to deal with
the aspect of tariff and regulation of generation, supply and
distribution of energy.
Organizational Structure

Contacts and Branches


U.P. Sugar Mills Association C/o.Indian Sugar Mills Association
Ansal Plaza, C-Block, 2nd Floor, Andrews Ganj August Kranti Marg, New Delhi110049
Email: upsma@indiansugar.com
West U.P. Sugar Mills Association C/o.Indian Sugar Mills Association
Ansal Plaza, C-Block, 2nd Floor, Andrews Ganj August Kranti Marg, New Delhi110049
Email: upsma@indiansugar.com
Central U.P. Sugar Mills Association C/o.Indian Sugar Mills Association
Ansal Plaza, C-Block, 2nd Floor, Andrews Ganj August Kranti Marg, New Delhi110049
Email: upsma@indiansugar.com
East U.P. Sugar Mills Association
4th Floor, Room No.403, Chintels House Trade Centre, 16, Station Road
Lucknow 226 001
Email: upsma@rediffmail.com
Uttarakhand Sugar Mills Association C/o.Indian Sugar Mills Association
Ansal Plaza, C-Block, 2nd Floor, Andrews Ganj August Kranti Marg, New Delhi110049
South Indian Sugar Mills Association-Tamil Nadu
Karmuttu Centre, 2nd Floor South Wing No. 634, Anna Salai Nandanam,Chennai
600 035.
Tel: +91-44-24349283 Email: sisma@sify.com
South Indian Sugar Mills Association - Andhra Pradesh
5-9-22/69, Adarshnagar Hyderabad 500 063 Tel: +91-40-23237261 Email:
sismaandhra@sify.com
South Indian Sugar Mills Association - Karnataka
1st Floor, Farah Winsford No.133/6, Infantry Road (Near Medinova Diagnostic
Centre) Bangalore-560 001.
West Indian Sugar Mills Association, Mumbai
Sakhar Sankul, Ground Floor Agriculture College Compound Shivajinagar, Pune
411 005
Bihar Sugar Mills Association

303, Saroj Complex, A. N. Road, North S. K. Puri, Patna-800 013. Phone : +91993401 11251
Indian Sugar Mills Association (ISMA)
Ansal Plaza, 'C' Block, 2nd Floor, August Kranti Marg, Andrews Ganj, New Delhi110049 (INDIA)
Phones: +91-11-2626 2294 - 98 FAX: +91-11-2626 3231