Growing at a compounded annual growth rate (CAGR) of about two per cent, consumption of sugar in the country is likely to reach 29.35 million tonnes (mt) by 2019-20 from 26 mt currently, says a study by the Associated Chambers of Commerce and Industry of India (Assocham).

“With a share of over 15 per cent in global consumption, India has emerged as the biggest consumer of sugar in the world,” said the study titled ‘Indian Sugar Industry: The way forward’.

Contributing factors

“Growing urbanisation, rising standard of living and changing food habits are certain key factors contributing to a rising trend in sugar usage, besides, industrial consumption of sugar is growing rapidly particularly in food processing sector,” said DS Rawat, Secretary-General, Assocham.

“In order to meet the projected sugar demand, we will need to undertake either farm side capacity expansion, improve mill efficiency or do both,” said the study. Farm capacities can be augmented by increasing the area under cane as well as enabling farm productivity improvements through increased yields along with increased sucrose content of cane, it added.

Sugar production has been 1.05 mt surplus in the 2013-14 season that ended last month. The area under cane increased from 4.41 million hectares to about 5.06 million hectares between 2001-02 and 2012-13, while sugarcane production rose from 297.2 mt to 336.15 mt during this period, the report said.

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