Growing at a compounded annual growth rate (CAGR) of about two per cent, consumption of sugar in India is likely to reach 29.35 million tonnes (mt) by 2019-20 from the current level of about 26 mt, according to a study by the Associated Chambers of Commerce and Industry of India (Assocham).
“With a share of over 15 per cent in global sugar consumption, India has emerged as the biggest consumer of sugar in the world,” stated the study titled ‘Indian Sugar Industry: The way forward’.
“Growing urbanization, 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 D.S. Rawat, Secretary General, Assocham, while releasing the findings of the chamber’s study.
“In order to meet the projected sugar demand India will need to undertake either farm side capacity expansion, improve mill efficiency or do both,” noted the study that was prepared by the industry body's Economic Research Bureau (AERB). 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.
Stabilization of production and productivity of sugarcane is important in view of the rising internal consumption of sugar and its need for ensuring adequate exports, it further noted.
India has been enjoying a production surplus in terms of sugar a surplus of 1.05 mt recorded for the 2013-14 season. Area under sugarcane has 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.
Sugarcane yields declined slight, however, from 67.37 metric tonnes per hectare (ha) to 66.47 per ha. The sugar recovery level dropped from 10.27 per cent to 9.99 per cent during the aforesaid period.
“Sugar production in India could have been even higher had the sugarcane yield and recovery levels also improved like other two parameters of sugarcane production and area under sugarcane,” the study further noted.
It recommended that the Government should encourage captive farming to raise the recovery levels as sugar mills will take more interest in cane development, newer varieties, tissue culture, sophisticated farming/crop treatment techniques/planned harvesting and thereby resulting in higher yield and better recovery. Considering that small land-holdings is a structural feature of India’s sugar industry, it limits the extent of mechanization and reduces ability of the farmer to invest in farm productivity.
The study also suggested that there is a need for developing high yielding, disease resistant, pest tolerant, good rationing and input responsive sugarcane varieties considering the significant limitations in bringing additional area under sugarcane owing to decreasing availability of arable land across India. Besides, encouraging mechanization of cane agriculture from planting and inter-culture to harvesting and loading is a must. There is also a need to minimise post-harvest losses in cane as the cut to crush period is too long resulting in considerable sucrose losses in cane, the study added.
Uttar Pradesh (UP) and Maharashtra are the top states in terms of both area under sugarcane and sugarcane production while Bihar has recorded highest CAGR in both area under sugarcane and sugarcane production. In terms of yield, Tamil Nadu is on top followed by Karnataka and Andhra Pradesh. Maharashtra topped in terms of recovery. Maharashtra, UP and Karnataka are top three states in terms of sugar production in India.