Sugar Industry Report

Sugar Industry Report Industry Analytics
A
SEMINAR REPORT
ON
“SUGAR INDUSTRY IN INDIA”
Submitted in partial fulfillment of the requirement of Chhattisgarh

Swami Vivekanand Technical University , Bhilai (C.G.)
For the award of MBA Degree
Session 2009-10
Guided By: Submitted By:
Prof. Shhipra Sarkar Ms. NUPUR AGRAWAL

Faculty of Management MBA – I SEM ‘A’
Faculty of Management
Disha Institute Of Management And Technology (DIMAT)

Satya Vihar, Vidhansabha, Chandrakhuri Marg, Raipur (C.G.)
CERTIFICATE
This is to certify that Ms NUPUR AGRAWAL,Of DIMAT, MBA Semester –I has

successfully completed the Seminar Report in partial fulfillment of requirement for
the award of MBA Degree prescribed by the Chhattisgarh Swami Vivekananda
Technical University, Bhillai.
This report is the record of authentic work carried out by the student during the
academic year 2009-10.
Internal Guide Academic Head

(Faculty of Management) (Faculty of Management)
DECLARATION
I, Miss. NUPUR AGRAWAL hereby declare that the Seminar Report entitled
“SUGAR INDUSTRY IN INDIA” is a genuine work done by me and all the
information collected is the record of authentic work carried out by me during the
acedmic year 2009-2010.
-------------------
(Signature)
Ms. NUPUR AGRAWAL
MBA I SEM Section A
ACKNOWLEDGEMENT
I would like to express my sincere thanks to Prof. Shhipra sarkar , for guidance
and support in making this report effective. Also I would like to express my
deepest gratitude towards Mr. Ayush Agrawal, Ms. Shrutika Sangodkar, Mr.
A.S.Samarth for helping me in making this report more conclusive. I hope you will
find this report as a valuable asset while studying Agriculture and youth interests
and youth opportunity towards it. Needless to add that I shall look forward to your
valuable feedback including the grey areas so as to incorporate them.
Ms. NUPUR AGRAWAL

MBA I SEM
Section A
CONTENTS
1. CHAPTER 1-
INTRODUCTION- HISTORY OF SUGAR
RAW MATERIALS PROCESSED
MANUFACTURING PROCESS
2. CHAPTER 2-
INDUSTRY ANALYSIS- INDUSTRY DESCRIPTION
SUBSTITUTE PRODUCTS
BY- PRODUCTS
3. CHAPTER 3-
INDIAN SCENARIO- HISTORY OF SUGAR IN INDIA
CURRENT INDIAN SCENARIO
CONTRIBUTION TO NATIONAL ECONOMY
EXPORT & IMPORT
INDIA’S DEMAND-SUPPLY
SUGAR PRODUCTION
SUGAR CONSUMPTION
4. CHAPTER 4-
BUSINESS ANALYSIS- INTRODUCTION
PERFORMANCE OF SUGAR INDUSTRY

SWOT ANALYSIS
ORDERS ANSD ACTS OF SI
5. CHAPTER 5-
MARKET LEADERS- INTRODUCTION
TOP 5 PLAYERS IN INDUSTRY
6. CHAPTER 6-
FUTURE OF SUGAR INDUSTRY
GROWTH POTENTIAL
7. CHAPTER 7- CHHATTISGARH SUGAR INDUSTRY

Chapter – 1
INTRODUCTION
History of “SUGAR”
India has been known as the original home of sugar and sugar cane. Indian
mythology supports the above fact as it contains some legends showing the
origin of sugar cane. The growth the sugar industry is full of tales of adventure
and conquest. It received attention of the builders of different Empires from time
to time.
About 800 B.C. sugar cane was perhaps taken eastward, i.e. China, where it
found suitable soil for development. About 327 B.C. when Alexander the great,
invaded India he and his soldiers were the First Europeans to see sugar cane in
India. On their return westward they took sugar cane to Europe, but it was about
700 A.D. that it is was actually cultivated there. It was between the fourth and
sixth centuries that the art of making sugar was discovered in India. The cane
was cut into pieces and crushed by a heavy weight and the juice thus obtained
was boiled and stirred until solids formed. These solids being of uneven shapes
and sizes were called “Sarkara”, the Sanskrit term for gravel. The modern word
“Sugar” is a derivative of the word “Sarkara”. The larger solids were called Khand
from which the word Candy has been derived.
The Chinese Emperor, Tsai-Hang sent a mission to Bihar in about 600 A.D. to
ascertain and study the art of sugar manufacture. From India the knowledge of
sugar making went over to Persia. It would thus be seen that India has been the
original home of sugar cane as also sugar manufacture.
Raw Materials Processed
1. Carbohydrates present in many plants having more or less sweet taste are
called as Sugar. The primary sugar, glucose, is a product of
photosynthesis and occurs in all green plants. In most plants, the sugars
occur as a mixture that cannot readily be separated into the components.
In the sap of some plants, the sugar mixtures are condensed into syrup.
Juices of sugar cane and sugar beet are rich in pure sucrose, although
beet sugar is generally much less sweet than cane sugar. These two
sugar crops are the main sources of the commercial sucrose.
2. Sugar cane: Sugar cane is a thick, tall, perennial grass that flourishes in
the tropical or subtropical regions. Sugar synthesized in the leaves is used
as a source of energy for growth or is sent to the stalks for storage. It is
the sweet sap in the stalks that is the source of sugar. The reed
accumulates sugar to about 15 percent of its weight. Sugar cane yields
about 2,600,000 tons of sugar per year. Sugar cane takes about seven
months to mature in a tropical area and about 12-22 months in a
subtropical area. At this time, fields of sugar cane are tested for sucrose,
and the most mature fields are harvested first.
3. Sugar Beet: Sugar beet is a beetroot variety with the highest sugar
content, for which it is specially cultivated. While typically white both inside
and out, some beet varieties have black or yellow skins. About 3,700,000
tons of sugar is extracted from sugar beet.
4. Other sugar crops include sweet sorghum, sugar maple, honey, and corn
sugar. The types of sugar used today are white sugar (fully refined sugar),
composed of clear, colorless or crystal fragments; or brown sugar; which
is less fully refined and contains a greater amount of treacle residue, from
which it obtains its colour.
2.3 The Manufacturing Process
1) Planting and harvesting
• Sugar cane requires an average temperature of 75 degrees Fahrenheit

(23.9 degrees)
Many developed countries do harvesting of both cane and sugar beet by

machine; although in many developing countries it is also done by hand.
The harvested cane stalks and beets are loaded mechanically or
physically into trucks or tractors and taken to mills for processing into raw
sugar. Once there, they are cleaned, washed, milled to extract juice,
filtered, and purified. The result is a clear, sugar-filled juice.
2) Preparation and Processing
• After the cane arrives at the sugar mills, it is mechanically or physically

unloaded and excessive soil and rocks are removed. The cane is cleaned
by flooding the carrier with warm water or by spreading the cane on
conveyors that pass through strong jets of water and combing drums (to
remove larger amounts of rocks, trash, and leaves, etc.). At this point, the
cane is clean and ready to be milled.
After being purified, the clear juice undergoes vacuum evaporation to

remove most of the water. In this process, four vacuum-boiling cells are
arranged in series so that each succeeding cell has a higher vacuum. The
vapors from one body can thus boil the juice in the next one, a method
called multiple-effect evaporation. Next, the syrup solution is vacuum-
crystallized to form sugar crystals. The remaining liquid is removed using
centrifugal and drying, and the sugar is packaged.
3) Juice extraction pressing
• Two or three heavily grooved crusher rollers break the cane and extract a
large part of the juice, or swing-hammer type shredders (1,200 RPM)
shred the cane without extracting the juice. Revolving knives cutting the
stalks into chips are supplementary to the crushers. (In most countries, the
shredder precedes the crusher.) A combination of two, or even all three,
methods may be used. The pressing process involves crushing the stalks
between the heavy and grooved metal rollers to separate the fiber
(bagasse) from the juice that contains the sugar.
• As the cane is crushed, hot water (or a combination of hot water and
recovered impure juice) is sprayed onto the crushed cane counter
currently as it leaves each mill for diluting. The extracted juice, called
vesou, contains 95 percent or more of the sucrose present. The mass is
then diffused, a process that involves finely cutting or shredding the stalks.
Next, the sugar is separated from the cut stalks by dissolving it in hot
water or hot juice.
4) Purification of juice—clarification and evaporation
• The juice from the mills, a dark green color, is acid and turbid. The
clarification (or defecation) process is designed to remove both soluble
and insoluble impurities (such as sand, soil, and ground rock) that have
not been removed by preliminary screening. The process employs lime
and heat as the clarifying agents. Milk of lime (about one pound per ton of
cane) neutralizes the natural acidity of the juice, forming insoluble lime
salts. Heating the lime juice to boiling coagulates the albumin and some of
the fats, waxes, and gums, and the precipitate formed entraps suspended
solids as well as the minute particles.
• The mud’s separate from the clear juice through sedimentation. The non-
sugar impurities are removed by continuous filtration. The final clarified
juice contains about 85 percent water and has the same composition as
the raw extracted juice except for the removed impurities.
• To concentrate this clarified juice, about two-thirds of the water is removed
through vacuum evaporation. Generally, four vacuum-boiling cells or
bodies are arranged in series so that each succeeding body has a higher
vacuum (and therefore boils at a lower temperature). The vapors from one
body can thus boil the juice in the next one—the steam introduced into the
first cell does what is called multiple-effect evaporation. The vapor from
the last cell goes to a condenser. The syrup leaves the last body
continuously with about 65 percent solids and 35 percent water.
5) Crystallization
• Crystallization is the next step in the manufacture of sugar. Crystallization

takes place in a single-stage vacuum pan. The syrup is evaporated until
saturated with sugar. As soon as the saturation point has been exceeded,
small grains of sugar are added to the pan, or "strike." These small grains,
called seed, serve as nuclei for the formation of sugar crystals. (Seed
grain is formed by adding 56 ounces [1,600 grams] of white sugar into the
bowl of a slurry machine and mixing with 3.3 parts of a liquid mixture: 70
percent ethylated spirit and 30 percent glycerin. The machine runs at 200
RPM for 15 hours.) Additional syrup is added to the strike and evaporated
so that the original crystals that were formed are allowed to grow in size.
The growth of the crystals continues until the pan is full. When sucrose
concentration reaches the desired level, the dense mixture of syrup and
sugar crystals, called massecuite, is discharged into large containers

known as crystallizers. Crystallization continues in the crystallizers as the
massecuite is slowly stirred and cooled.
• Massecuite from the mixers is allowed to flow into centrifugals, where the
thick syrup, or molasses, is separated from the raw sugar by centrifugal
force.
6) Centrifugaling
• The high-speed centrifugal action used to separate the massecuite into

raw sugar crystals and molasses is done in revolving machines called
centrifugals. A centrifugal machine has a cylindrical basket suspended on
a spindle, with perforated sides lined with wire cloth, inside which are
metal sheets containing 400 to 600 perforations per square inch. The
basket revolves at speeds from 1,000 to 1,800 RPM. The raw sugar is
retained in the centrifuge basket because the perforated lining retains the
sugar crystals. The mother liquor, or molasses, passes through the lining
(due to the centrifugal force exerted). The final molasses (blackstrap
molasses) containing sucrose, reducing sugars, organic non-sugars, ash,
and water, is sent to large storage tanks.
Once the sugar is centrifuged, it is "cut down" and sent to a granulator for
drying. In some countries, sugar cane is processed in small factories
without the use of centrifuges, and a dark-brown product (non-centrifugal
sugar) is produced. Centrifugal sugar is produced in more than 60
countries while non-centrifugal sugar in about twenty countries.
7) Drying and Packaging
• Damp sugar crystals are dried by being tumbled through heated air in a
granulator. The dry sugar crystals are then sorted by size through
vibrating screens and placed into storage bins. Sugar is then sent to be
packed in the familiar packaging we see in grocery stores, in bulk

packaging, or in liquid form for industrial use.
Quality Control
Mill sanitation is an important factor in quality control measures. Bacteriologists

have shown that a small amount of sour bagasse can infect the whole stream of
warm juice flowing over it. Modern mills have self-cleaning troughs with a slope
designed in such a way that bagasse does not hold up but flows out with the
juice stream. Strict measures are taken for insect and pest controls.
Because cane spoils relatively quickly, great steps have been taken to automate
the methods of transportation and get the cane to the mills as quickly as
possible. Maintaining the high quality of the end-product means storing brown
and yellow refined sugars (which contain two percent to five percent moisture) in
a cool and relatively moist atmosphere, so that they continue to retain their
moisture and do not become hard.
Chapter – 2
INDUSTRY ANALYSIS
3.1 Industry Description
The Sugar industry is described as industry, which is involved in the production

of edible sugar from raw sugar cane and sugar beet. Sugar is extracted from two
raw materials, sugar cane and beet and is produced in over 100 countries.
Nearly 60 per cent of the world sugar is produced from sugar cane and the
balance is from sugar beet. Cane sugar is grown mainly in warm, southern
hemisphere regions while beet is generally grown in cooler areas in the northern
hemisphere. Both taste the same and produce white sugar although beet sugar,
typically, smaller and more uniform crystal shapes. The sugar industry is a
seasonal industry where the season for beet based sugar is 6 to 18 weeks and
cane based lasting for 12 to 22 weeks.
Sugar has two significant roles to play, firstly, sugar as a food crop may be
considered an inexpensive and abundant source of calories and thus important in
the fulfillment of basic human energy requirements. Secondly, sugar plays an
important economic role in generating income, employment and export earnings.
Sugar is typically one of the most significant contributors to dietary energy

supply. Sugar is the third most important source of per capita dietary energy
supply after cereal products. And it is a relatively inexpensive food. The cost of
calorie from sugar is about 15 per cent less than that from cereals. At the global
level, sugar currently contributes more than 8 per cent of the total caloric intake,
after cereals (52%) and oils (10%).
As concerned with economic importance, sugar is an important source of export

earning. Sugar exports are very large compared to most other agricultural
commodities, with developing countries having large export earnings from their
sugar exports, nearly 5 percent of the value of their total agricultural exports.
While the value of exports is significant, it should be recalled that less than 30
percent of global sugar production enters the world market. Therefore, the
economic significance of the commodity is far greater, encompassing all activities
from the cultivation of the sugar cane or beet to the processing into sugar. In
developing countries, the contribution of the crop to the national GDP can be
very significant. About two-third of global sugar output is consumed within the
country of production. Of the 120 million tones produced globally each year, only
40 million tones are traded Brazil, India, the EU, Australia and Mexico are the
largest producers of sugar.
Sugar is also called as Sucrose in technical terms. As sugar varies in quality, it is

usually graded by polarization and sucrose content. Sugar is a carbohydrate that
exists in every fruit and vegetable. It is a major product in the process of
photosynthesis. The natural sugar present in the cane stalk or beet root is
separated from the rest of the plant material through the process known as
refining.
Sugar products commonly used worldwide are as follows:
Granulated: Granulated Sugar is pure crystal sugar it can be classified into

seven types of sugar based on the crystal size. Each crystal size provides unique
functional characteristics that make the sugar appropriate to the needs of the
consumers.
Brown: Light to dark brown sugar – with color and properties depending on
inherent molasses content, its natural moistness and deep, rich aroma makes it
ideal for full flavored recipes.
Invert Sugar: It is a mixture of glucose and fructose in liquid form. It absorbs

moisture very fast, is about 25 percent sweeter than normal sugar, is highly
soluble in water and alcohol, and caramelizes fast.
Damerara Sugar: Golden brown sugar crystals rolling with the rich aroma of
tropical sugar cane molasses. Its distinctive flavor and crunchy texture makes it
ideal for hot and cold beverages, sprinkling on cereals, or as a topping on cakes
and cookies.
Pharma Sugar 'Sucrose IP': It is a pharmaceutical grade sugar that complies

with the IP standards and European Union standards for pharmaceutical grade
sugar. Due to its strict quality standards, it has been IP certified by the Drug
Controller of India.
Substitute Products
In the international market corn derivatives, known as corn syrups, dextrose and
high fructose corn syrup (HFCS) are used as sugar substitutes. In India, alternate
sweeteners to sugar are Gur and Khandsari, which are less refined forms of
sugar. Indian sugar mills and the Gur and Khandsari manufacturers compete for
the same cane so it also very important to understand the business dynamics of
the Gur and Khandsari manufacturers. The past few years have been good for
the Gur and Khandsari manufacturers, as the cane cultivator’s prefers selling
their produce to these manufacturers then to selling to the sugar mills because of
prompt payment made by the Gur and Khandsari manufacturers, unlike the sugar
mills which delay the payment. The industry is sustained by high margins which
are earned by the Gur and Khandsari manufacturers due to willingness of the
farmers to sell and advantage of low price procurement of cane.
However in the recent years the industry has seen changes where the mills have
started paying the cane growers within 15 days, or by cash payment and in
addition to this the mills are also paying Rs.13-20 extra per ton of cane as an
incentive to attract the cane growers, such initiatives have helped the sugar mills
safeguard themselves from the Gur and Khandsari manufacturers.
Gur “Jaggery”
Jaggery or Gur or whole sugar is a pure, wholesome, traditional, unrefined,

whole sugar. It contains the natural goodness of minerals and vitamins inherently
present in sugar cane juice and this crowns it as one of the most wholesome and
healthy sugars in the world. In Mexico and South America, it is also known as
panela. Jaggery, being a wholesome sugar, without doubts is rich in vitally
important minerals salts: 2.8 grams per 100 grams, that is to say 28 grams per
kilogram, while only 300 milligrams per kilogram is found in refined sugar.. Gur is
very rich in iron, which a composite of hemoglobin prevents anemia.
Manufacturing Process:
Raw sugar cane juice is slowly simmered in pans and the water is progressively
evaporated. Clarification is done using natural vegetable clarificants. Scooping
the boiling juice from one pan to another until the liquid starts to go hard carries
out this process.
Khandsari
Khand is close substitute of sugar. It is like sugar in all respect other than the crystals are
little smaller. The process of manufacturing khand is labour intensive. All the processes
are carried out manually like adding of chemicals to the juice, cooking the juice and then
packing them. As the process is manual, khand is not as hygienic as sugar and also the
sulphur content some times is much higher than the mills sugar. Khand is sold at a
discount to sugar; it sells at Rs.1-2 less per kg. The primary reason for the slow growth of
Khandsari manufacturers is the low sugar yield; the recovery level for a khand
manufacturer is only 6 percent.
3.3 By – Products of Sugar Industry

In the process of sugar manufacturing the major by-products, which are derived
are molasses, bagasse and press mud, and these by-products account for about
40 percent by weight, of total sugar cane crushed. India has achieved
considerable progress in the utilization of by-products bagasse and molasses.
Today sugar mills are adopting an integrated business model that revolves
around effective utilization of by-products including ethanol and bagasse.
 Molasses – Molasses is used primarily in the production of alcohol

(rectified spirit). It accounts for 4.3% - 4.7% per ton of sugar cane crushed.
 Bagasse – The fibre (30% - 33% per ton of sugar cane crushed) formed
from crushing sugar cane is called bagasse, which is used as a combustible
in furnaces to produce steam, which, in turn, is used to generate power.
Sugar mills use bagasse to generate power needed for processing sugar
cane. It is also used as raw material in the production of paper and as
feedstock.
 Press Mud – Press mud accounts for around 3%-5% per ton of the sugar
cane crushed. Sulphination press mud is mainly used as manure.
Source: Karvy Stock Broking Limited

Chapter – 3
INDIAN SCENARIO
5.1 History of the Indian Sugar Industry
The advent of modern sugar processing industry started by direct vacuum-pan

method in India, started with the adoption of a policy of discriminating protection
by the Government of India in 1932. In the mid-twenties a number of sugar mills
sprang up in Uttar Pradesh and Bihar. Their case against the Japanese sugar
then commanding the Indian market was referred to the Tariff Board and the
Sugar Industry Protection Act was passed by the Indian Legislature in 1932,
foundation being thus laid for what proved to be a dynamic enterprise of gigantic
dimension with profound economic value.
The post-protection story of India’s Sugar Industry is interesting. From a scanty

32 working units in 1931-32, the number of factories rose to 130 by 1934-35 and
the volume of sugar output which stood at 1.72 lakh tones, rose to 9.47 lakh
tones by 1935-36. This rate of expansion over so short a period constitutes a
world record.
The first sugar mill in the county was setup in 1903 in the United Provinces,
however the start of the modern sugar industry in India dates back to mid 1930’s
when a few vaccum pan units were established in the sub-tropical belts of Uttar
Pradesh and Bihar.
Until the mid 50’s, Uttar Pradesh and Bihar were the state which confined the
sugar industry and only after late fifties or early sixties the industry dispersed into
Southern India. Western India and other parts of Northern India. India is the
largest consumer and second largest producer of the sugar in the world. The
sufficient and well distributed monsoons, rapid population growth and substantial
increase in sugar production capacity have combined to make India the largest
consumer and second largest producer of sugar in the world.
5.2 The Current Industry Scenario
The growth of the industry is evident from the number of sugar mills in the
country, which increased from 29 in sugar year (SY) 1930-31 to over 453 in the
(SY) 2002-03 (Sugar Year = Oct 1st to Sept 30th). The addition in number of mills
was at its peak during seventies when nearly 100 mills were added between
1970 and 1980 to increase the number of operating units to 300.
The average capacity of the sugar mills in the industry has considerably moved
up from just 644 ton per day in SY 1930-31 to 2656 ton per day in the year 1996-
97. The growth in the industry was horizontal (increase in number of units)
compared to the vertical growth seen by other countries (increase in average
capacity).
The sugar industry is the second largest agro-based industry, next to textile
industry in the country. There are 553 installed sugar mills, of which 453 were in
operations in the year 2002-03 and utilized 194.4 million ton of sugar cane (69%
of total cane production) to produce nearly 20.14 million tons of sugar. There are
many industries, which utilize the byproducts of sugar industry as their raw
material.
The Indian sugar industry has not only achieved the singular distinction of being
one of the largest producer of white plantation crystal sugar in the world but has
also turned out to be a massive enterprise of gigantic dimensions. With nearly
550 sugar mills located through out the country, the sugar industry is amongst
the largest agro processing industries, with an annual turnover of 150 billion. It
plays a major role in the rural development and its importance for India stretches
far beyond the role of a sweetener supplier.
The sugar factories located in various parts of the country work as nuclei for
development of rural areas by utilizing rural resources and generating
employment, transport and communication facilities. More then 45 million
farmers, their families and a large population of agricultural labor are involved in
sugar cane cultivation, harvesting and ancillary activities constituting 7.5% of the
rural population. The sugar industry employs over 0.5 million skilled and unskilled
workmen, mostly from the rural areas. India has 20 percent of the total sugar
mills in the world and accounts for about 15 percent of the global production.
Sugar industry operated under a policy of partial control in 1950-51 and 1951-52,
followed by continuous period of six years of decontrol between 1952-53 to 1957-
58. After this era the government adopted the policy of partial decontrol in 1967-
68, which has been the mainstay of government policy except for two short
periods of decontrol in the 1970’s. Under this policy the government procures 40
percent of the production at controlled prices based on the Statutory Minimum
Price for sugar cane, for supply through the Public Distribution System and
balance 60 percent is allowed to be sold by the mills in free markets subject to
monthly release mechanism. The levy quota for sugar mills was brought down
from the peak level of 70 percent in 1968-69 to the levels of 40 percent as a
gradual process of deregulation of sugar industry. In pursuance to the decision to
decontrol sugar industry, the Central government reduced compulsory levy
obligation of the sugar industry from 40 percent to 30 percent with effect from
01/01/2000, 15 percent effect from 01/02/2001 and 10 percent with effect from
01/03/2002.
In November 2001, the Central Government announced that the sugar factories
will be given quarterly releases for non-levy free sale sugar from January, 2002
in place of the monthly releases. In February 2002, the Central Government
decided to dispense with the release mechanism with effect from 1st April 2003.
5.3 Contribution to National Economy
Sugar is amongst the larger agro processing industries in India with 2.76 weight
in annual industrial production. 45 million farmers and their families besides
larger mass of agricultural labour are involved in sugar cane cultivation and its
harvesting operation. Over 5 lakh workmen are directly employed. Employment is
also generated in various ancillary activities. The industry thus caters to over 7.5
percent of our rural population.
The sugar industry contributes about Rs. 2100 crores to the Central Exchequer
as exercise duty and other taxes annually. In addition, about Rs.600 crores is
realized by the state Government annually through purchase tax and cess on
cane. Through sugar exports it has the potential to earn the nation Rs. 2500
crores in foreign exchange every year. The industry does not depend on fossil
fuels but generates its own renewable source of energy. Not only has that it
generated surplus power through cogeneration for use of consumers in interior
rural areas. The sugar industry has the potential to generate 5000 M.W. surplus
power. The sugar industry has made a very important place for itself in the Indian
Economy.
The Government of India licensed new units with an initial capacity of 1250 TCD
up to the 1980’s and with the revision in minimum economic size to 2500 TCD,
the Government issued licenses for setting up of 2500 TCD plants thereafter.
The Government de-licensed sugar sector w.e.f. 11/09/1998. The entrepreneurs
have been allowed to set up sugar factories or expand the existing sugar
factories as per the techno-economics feasibility of the project. After de-licensing,
a number of new sugar plants of varying capacities have been setup and the
existing plants have substantially increased their capacity.
5.4 Export & Imports

Sugar Exports
India entered the world as an exporter of sugar in the year 1957. The
Government promoted the Sugar Export Promotion Act, 1958 to provide for
export of sugar in the public interest. In a short period India emerged as an
important exporter of sugar. However, exports were undertaken in the years of
surplus production and imports undertaken during the years of shortages. On an
overall basis India has been a net exporter of sugar.
The Sugar Export Promotion Act, 1958 under which export of sugar was
canalized through agencies by the Central Government has been repealed with
effect from 15/01/1997. The Central Government has removed the quantitative
ceiling on export of sugar. It has also dispensed the registration requirement for
export of sugar with the Agricultural & Processed Food Export Development
Authority (APEDA) with effect from 01/04/2001.
The Central Government took the following measures to promote export of

sugar.
• Exemption from compulsory levy obligation on the export of sugar.

• Deferment of adjustment of the exported quantity of sugar in the stocks of
the sugar factories for the purpose of domestic free sale releases.
• Reimbursement of expenditure of internal transport and freight on export
shipment of sugar.
• Neutralization of disadvantage in ocean freight charges to the extent of
Rs. 350/- per ton of sugar exported.
• Reimbursement of marketing and handling charges @ Rs.500/- per ton
sugar exported.
Sugar Imports
In a situation of low production of sugar, the domestic demand has been met
through augmentation of supply by import of sugar. Import of sugar in fact, began
from the SY 2003-04 in exchange of white sugar exported out of the country.
Sugar factories in Southern India, Northern India as well as Western India
imported significant quantities of raw sugar for domestic consumption during the
SY 2004-05. Thus, availability of additional sugar supply was fairly wide spread,
although in Southern India with higher imports, larger additional supplies of white
sugar became available. Raw sugar imports now is an all India phenomenon
SECTOR WISE MILLS IN OPERATION IN INDIA

Table 7. Number of Sugar Mills in Operation in India and Average Capacity

(TCD)
Number of sugar mills Average ton crushed

Sugar Year (Oct-Sept) per day.
1980-81 315 1718
1981-82 320 1721
1982-83 321 1779
1983-84 326 1779
1984-85 339 1834
1985-86 342 1885
1986-87 354 1862
1987-88 357 1888
1988-89 365 1925
1989-90 377 2036
1990-91 385 2088
1991-92 392 2167
1992-93 393 2325
1993-94 394 2388
1994-95 408 2483
1995-96 416 2531
1996-97 412 2656
1997-98 400 2863
1998-99 427 2855
1999-2000 423 3049
2000-2001 436 3203
2001-2002 434 3285
2002-2003 453 3343
Source: ISMA
Table 8. Number of Sugar Units in Operation
Period No. of Units % Increase in Average % Increase in

Ending units over the capacity per capacity over
base year 1980 unit (ton) the base year
1980
1980 299 --- 1650 ---
1990 377 26% 2030 23%
2000 423 41% 3000 82%
2003 453 52% 3340 102

Source: ISMA
Table 9. State-wise Sugar Production, Season duration, No. of Units in
Operation in Major Sugar Producing States of the Country
State No. of Units Season Sugar cane Sugar
in operation Duration Production Production
(Days) (Million tons) (Million tons)
Andhra 35 119 18.08 1.05
Pradesh
Bihar 10 117 5.21 0.34
Gujarat 15 152 12.46 1.05
Haryana 15 162 9.27 0.62
Karnataka 36 142 33.01 1.55
Maharashtra 135 125 45.14 5.61
Punjab 22 147 9.25 0.59
Tamil Nadu 36 195 32.62 1.83
Uttar 101 150 117.98 5.26
Pradesh
Uttranchal 10 138 7.55 0.44
Source: ISMA
5.5 India’s Supply – Demand Scenario

As we have discussed in our previous section Indian is the largest consumer of
sugar with consumption estimated at 19 million tones per year and second
largest producer of sugar in the world with production for sugar season (SS) or
sugar year (SY) 2005-06 estimated between 17.5 – 18 million tonnes. The
current stock inventory for the SY 2006-07 has fallen by 4.5 million tones due to
low production of sugar in SY 2004 – 05 and SY 2005 – 06.
Table 10. Demand-Supply Position of India from SY 2001-02 to SY 2005-06
Mn/tones SY 01-02 SY 02-03 SY 03-04 SY 04-05 SY 05-06

Opening Stock 10.7 11.3 11.6 8.5 4.5

Production 18.5 20.1 14.0 12.5 17.5
Imports 0.0 0.0 0.4 2.0 1.0
Total Supply 29.2 31.5 26.0 23.0 23.0
Consumption 16.8 18.4 17.3 18.5 19.2
Exports 1.1 1.5 0.2 0.0 0.5
Closing Stock 11.3 11.6 8.5 4.5 3.3
Growth in Consumption 3.6 9.6 (6.0) 7.0 3.8
(%)
SMP 62.1 69.5 73.0 74.5 79.5

Average Prices (Rs.) 1,459 1,289 1,505 1,796 1,919
Closing 67.4 63.2 49.2 24.3 17.2
Stock/Consumption (%)
Source: site.securities.com
CIER – Industry Statics
5.6 Sugar Production
India is among the largest producer of sugar in the worlds and ranks the largest
growing global market for sugar. India has 20 percent of the total sugar mills in
the world and accounts for about 10-15 percent of the global production. India
has maintained its position as the 2nd largest sugar producing country in the
world, having a share of over 15 percent of the world’s sugar production
5.7 Sugar Consumption
The average per capita consumption of sugar is estimated at 18.3 kg/year 2002-
03. Apart from white sugar India also consumes alternate sweeteners jaggery
and Khandsari, which are produced in large quantities, representing about 35
percent of the total sweeteners production in the country. Considering all the
three sweetener i.e. white sugar, jaggery and Khandsari, on a per capita basis,
India’s consumption stands at a reasonably high figure. Based on this existing
trend, this is estimated to increase to 23-24 kg/year by year 2010. At an annual

population growth rate of 1.6% per annum, the population of India is expected to
be 116 Crores by the year 2010 and therefore the corresponding estimated
requirement of sugar will be million tons. To achieve this, the sugar cane needs
to be cultivated on an area of about 5.5 million hectares with an average yield of
65 T/ha. As the increase in area of the sugar cane from the present 4.36 million
hectare to 5.5 million hectare, may not be possible due to other competing crops,
it becomes necessary to improve the productivity and yield of sugar cane and
sugar recovery.
Table 9. Consumption of Sugar in India and rest of the world.
Calendar Year Global India’s % Of India’s

Consumption Consumption Consumption
(Million ton) (Million ton) from global
consumption
1996-97 120.9 15.0 12.4
1997-98 123.1 16.3 13.0
1998-99 125.00 16.3 13.2
1999-2000 127.8 16.7 13.1
2000-2001 130.8 17.4 13.3
2002-2003 133.0 17.9 13.4
Source: site.securities.com
Table 10. State-wise Per Capita Consumption of Sugar
(In Kgs)
State Urban Rural Average
Punjab 72 22 34
Haryana 67 19 27
Maharashtra 41 20 26
Gujarat 41 18 23
Kerala 42 13 16
Tamilnadu 29 13 16
Karnataka 23 11 13
Uttar Pradesh 35 10 13
West Bengal 21 10 12
Andhra Pradesh 20 10 10
Source: ISMA
Chapter – 4
Business Analysis
6.1 Introduction
The Indian Sugar industry is the second largest agro-processing industry in the
country. The sweetener industry is highly organized with nearly 5694 units of Gur
and Khandsari producing units and a mere 564 sugar producing units through out
the country. The Indian sugar industry co-exists with different ownership and
management structures. Sugar mills in India are divided into three sectors i.e.
the public sector, private sector and the Cooperative sector. The state of U.P
has the highest number of privately owned sugar mills, this sugar mills procure
sugar from thousands of neighboring cane growers for their manufacturing
process. On the other hand the state of Maharashtra has the highest number of
cooperative sugar mills; these mills are owned and managed jointly by the
farmers. In between are the state owned factories.
6.2 Sector wise Distribution of Sugar Mills

Chart showing the Percentage of Public, Private and Cooperative Sugar
Mills in India
11%
56% 33%
Public
Private
Cooperative
6.3 Performance of Sugar Industry
The three basic factors that influence the performance of the sugar
industry are
1. Technology,
2. Marketing,
3. Ownership and Management structure.
Dynamics of sugar cycle
The domestic sugar industry follows a 5 to 7 years cycle. Higher sugar cane and
sugar production results in a fall in sugar prices and non-payment of dues to
farmers. This compels the farmers to switch to other crops thereby causing a
shortage of sugar cane, consequently an increase in sugar cane prices and
extraordinary profits.
Source: Uttam Sugar Mills Ltd.

(Red Herring Prospectus)
Pricing Policy
The Government has been following a dual pricing policy for sugar, under which,
a fixed percentage of the total production is to be necessarily sold by the sugar
mills to the Government or its nominees at a pre-determined price referred to as
"levy sugar". The sugar so collected is distributed to consumers through Fair
Price Shops under the Public Distribution System.
The balance sugar referred to as "free sale sugar" can be sold in the open
market. Free sale sugar is also regulated to some extent, by way of a release
mechanism, whereby the Government determines the quantum of sugar that can
be sold every month. This helps the Government maintain stability in sugar
prices, by regulating the supply of sugar based on the underlying demand. Thus,
the Government statutorily determines the price of levy sugar, while the price for
the free market sugar is market determined, affected to some extent by the
release mechanism. As per Tuteja Committee, the Central Government decided,
in February 2002, to dispense with the release mechanism with effect from April
1, 2003. However, in March 2003, it was decided to continue with the release
mechanism up to September 2005 and to review the position in February 2005.
The Tuteja Committee has also recommended that the Central Government may
dispense with the release mechanism for free sale sugar with effect from October
1, 2005.
The levy imposed has reduced from 40% in the 1990s to 10% effective from March 2002.
The Tuteja Committee has also recommended continuing with the 10% levy obligation
level. The Committee has also recommended that beyond the initial time limit, a
maximum of 3 months may be permitted for lifting of levy sugar by the Government,
where after, the levy sugar quota would automatically be converted into free sale sugar,
without any recurring levy obligation on this portion of levy sugar.
6.6 SWOT ANALYSIS
Strengths: Weakness:
• India being a tropical country is • Restriction on Corporates for

ideal for growing sugar cane. sugar farming.
• Lack of producers control on
• India is the second largest sugar quality, quantity and cost of
producing country in the world sugarcane.
• Restriction on setting up ofsugar
plants in the vicinity of 15 kms
from the existing unit.
• State Govt. controls the
allocation of the sugar cane
areas for sugar units
• Sales regulated by release order
mechanism
Opportunities: Threats:
• Maximization of sugar recovery. • Highly fragmented industry.
• Greater value addition from the • Highly seasonal leading to

by products. unavailability of cane and hence
mismatch in demand supply
6.7 Orders and Acts for Sugar Industry
Essential Commodities Act, 1955: The objective of the EC Act is to control the
production, supply, distribution and trade & commerce in the essential
commodity. Under the sub-section 3(3C), levy sugar price is required to be fixed
by the Central Government having regard to:
a) The minimum price fixed for sugar cane by the Central Government;
b) The manufacturing cost of sugar;
c) The duty or tax payable thereon; and
d) The securing of a reasonable return on the capital employed in the
business of manufacturing sugar.
It is also provided that different prices may be determined from time to time for
different areas or factories or for different kinds of sugar.
Sugar Export Promotion Act: Export can be made voluntarily, But, resorting to
export of sugar, would not exempt any sugar mill either from its obligation to
supply levy sugar which is requisitioned by the Government in terms of Section
3(2) (f) of the EC Act, 1955, or to effect sale of sugar in open market in
compliance of the month-to-month release orders issued by the Government.
Sugar Cess Act, 1982: Provides for the imposition of a cess on sugar for the
development of sugar industry and for matters connected therewith.
Sugar Development Fund Act, 1982: Formation of Sugar Development Fund to

be applied for the purpose of rendering financial assistance through loans at
concessional rates for rehabilitation and modernisation of sugar factories as well
as for sugar cane development and for encouraging research aimed at

development for sugar industry by making grants.
Levy Sugar Price Equalization Fund Act (LSPEF Act), 1976: Provides for the
establishment, in the public interest, of a fund to ensure that the price of levy
sugar may be uniform throughout India and for matters connected therewith or
incidental thereto.
Excise and taxes

Some of the state governments impose purchase cess on the sugar cane
purchases made by the sugar mills, which varies from state to state. The states
of Assam, Nagaland, Rajasthan, Orissa, West Bengal & Goa which produce
small quantities of cane, however, do not levy cess on the sugar cane purchases.
The GOI charges a higher excise duty on free sale sugar in comparison to levy
quota, so as to recover the subsidy provided for PDS supply. In addition, under
the Sugar Cess Act 1982, a cess is charged to sugar sold in the domestic
market, which directly goes to Sugar Development Fund (SDF). Currently the
government levies an excise duty of Rs380 per ton on levy sugar and Rs710 per
ton on free sale sugar. In addition Rs140 per ton is levied as cess for domestic
sale of sugar.
Chapter – 5
MARKET LEADERS
7.1 Introduction
The sugar in Industry is highly fragmented with none of the market players
having more than 3 percent of the market share. Although cooperatives account
for around 43 percent of the total production in the sugar industry, their share has
gradually declined.
Sugar mills in India have capacity ranging from below 1,250 tonnes crushed per
day (TCD) of sugar cane to 10,000 TCD. The Government has now established
minimum capacity criteria for new sugar mills standing at 2,500 TCD.
Most of the private sugar industry groups are either expanding their capacities or
adding new units. The sharp rise in investment could be attributed to the Sugar
Policy announced by the UP Government in the year 2004. Under the new frame
work, a capital subsidy and reimbursement of transportation cost of sugar would
be given to the private companies, which set up new sugar manufacturing
facilities or expand the existing ones during 2005 - 07.
The Top 5 players in the Industry are:
• Bajaj Hindustan Limited

• Balrampur Chini Mills Limited
• Triveni Engineering and Industries Limited
• DCM Shriram
• Dhampur Sugar Mills
CHAPTER – 6
FUTURE OF SUGAR
INDUSTRY
9.1 Growth Potential
World sugar production during the SY 2006 is estimated to increase by 3.7

percent to 147.8 Mt, almost to the projected sugar consumption of 148 Mt. The
bulk of the growth is expected to be accounted for developing countries, led by
record harvest in Brazil, and recovery in India. Brazilian sugar production is
estimated to increase 3.5 percent in SY2006 to 30 Mt because of favourable
weather conditions. Output in China is expected to increase 6 percent to 10.7 Mt.
India’s sugar production is also expected to increase more 40 percent.
World sugar consumption is expected to increase 2 percent in SY2006 to 148 Mt,

because of expected growth in consumption in the developing countries of the
Far-East and Latin America. Sugar consumption is expected to increase in
developing countries along with the rise in income and population. Consumption
in the developed countries is expected to remain unchanged. The price of sugar
is expected to increase in the future due to conversion of sugar cane into alcohol
and fuel in Brazil. Around 55 percent of Brazilian sugar cane is converted into
alcohol for fuel.
Sugar Industry gearing-up for the future

Although the sugar industry in India is cyclical in nature, the sugar companies are
gearing their resources to tap the existing as well as future opportunities. The
sugar companies are getting higher realization from the changing demand-supply
scenario.
In respect of taxation the state governments may bring sugar under 4 percent
Value Added Tax (VAT), which might result in price in the coming years. Several
Indian companies are also expanding their capacities in order to anticipate the
future demand.
Pilot Project to cultivate sugar beet

Sugar beet a major sugar producing crop of the Europe, Russia and the US, will
also be cultivated in India in near future in the state of Maharashtra. The pilot
project will be undertaken from October, where 100 hectares of sugar beet will be
grown in two districts. Sugar recovery from sugar beet is 15 –16 percent per
tonne, while in sugarcane it is 11 percent.
Future Import duty reduction

The Government of India is planning to reduce import duty on sugar from 60
percent to 20 percent, this is being done in order to import additional one million
tonne of sugar. The WTO-bound tariff rate for sugar is 150 percen, while the
applied duty is 60 percent along with a countervailing duty of Rs. 850 a tonne.
The Governments intends to reduce the duty to 20 percent, but the countervailing
duty will remain same.
By-product Utilization:
The use of ethanol in petrol is likely to increase in the coming years. Government
of India has made it mandatory to blend 5 percent with petrol in various parts of
the country and it is likely that the same will be increased to 10 percent in the
near future. This also will benefit the Indian Oil companies by making use of
ethanol over gasoline in petrol. This utilization of ethanol will boost the
investment in the sugar industry in the coming years.
Finally, the improved financial performance, investment in expansion, higher

realization from by-products and shortage in international market will improve the
condition of the Sugar India in the coming years.
CHAPTER - 7
CHHATTISGARH
SUGAR INDUSTRY
SUGAR INDUSTRY IN
CHHATTISGARH
Chhattisgarh sugar industry has two sugar factories located in two parts of the
state. Two sugar factories in chhattisgarh are-
1. NAVEEN JINDAL (Sarangarh).

2. CHHATTISGARH S.S.K LTD.(Khurd).
The sugar production in Chhattisgarh largely depends on the rainfall experienced during monsoon.
The more the rainfall is, the better will be the sugar production. The state has been witnessing a
good monsoon followed by a heave growth in the sugar industry during 1998-2003. The production
of sugar was heavy all over India and Chhattisgarh being a novice in this industry, witnessed a good
start in the sector. Considering this growth in the sugar industry in India, the Indian Government
fixed a sum as Statutory Minimum Price (SMP) for sugarcane manufacturing and this was regulated
by Clause 3 of the Sugarcane Order. It was also approved by Commission for Agricultural Coast
and Prices (CACP) and various state governments. During 2004-05, the SMP was fixed at a rate of
Rs. 74.50 per quintal with a staple retrieval of 8.5 percent.
In 1982, the Government of India established a Sugar Development Fund with the aim to finance
the industry in order to implement better technologies in sugar manufacturing. Considering the
encouraging growth in the sugar industry in India, the Indian government decided to include few
more states of India in the production of sugar and Chhattisgarh was thereby chosen as one of
them. The government of India has sanctioned huge amounts of loans for the advancement of
sugar industry in Chhattisgarh which has borne fruit since there has been a huge growth in the
sugar industry of Chhattisgarh, though it is yet to attain its full potential.
Apart from sugar production, Chhattisgarh sugar industry is involved in sugarcane cultivation as
well. Sweets and products of sugar are heavily consumed in parts of Chhattisgarh. This has led to
an alarming rise in the sugar industry in Chhattisgarh. Both the sugar factories located in
Chhattisgarh have a crushing capacity of 2500 TCD. Sugar factories are being established in
different parts of the country including rural areas. Rural areas in India are experiencing better
growth in the sugar production. Traditional sweeteners and sugarcanes are the most wanted
products consumed by the rural population. The inhabitants in Chhattisgarh depend largely on the
sweet products not only of their festivals but also sweets and other sugar products are a basic stuff
which every household prefers there. This has been one of the most significant factors that has led
to the success of Chhattisgarh sugar industry.
.
Sugar Industry in Chhattisgarh

Sugar Factories Details
Naveen Jindal
dt.- 8.12.97, Crushing Capacity- 2500
6, Prithvi Raj Road, New Delhi 110011, Location Sarang Garh, Dist. Raigarh, L.I.
TCD
No. 313
Chatisgarh S.S.K. Ltd dt.- 5.12.97, Crushing Capacity- 2500

Kurud, Dist. Raipur, L.I. No. 311 TCD
Pest Control | Balrampur Chini Mills

Chhattisgarh Sugar Industry has two sugar factories located in two parts of the state. Sarangarh and Khurd are the two
towns where sugar factories have been set up for manufacturing sugar. The sugar industry has just started developing in
Chhattisgarh recently.
the 2 sugar factories of Chhattisgarh are as follows:
 Naveen Jindal (located in Sarang Garh, Dist. Raigarh)
 Chhattisgarh S.S.K. Ltd (located in Kurud, Dist. Raipur) The sugar production in Chhattisgarh largely depends on the
rainfall experienced during monsoon. The more the rainfall is, the better will be the sugar production. The state has been
witnessing a good monsoon followed by a heave growth in the sugar industry during 1998-2003. The production of sugar
was heavy all over India and Chhattisgarh being a novice in this industry, witnessed a good start in the sector. Considering
this growth in the sugar industry in India, the Indian Government fixed a sum as Statutory Minimum Price (SMP) for
sugarcane manufacturing and this was regulated by Clause 3 of the Sugarcane Order. It was also approved by Commission
for Agricultural Coast and Prices (CACP) and various state governments. During 2004-05, the SMP was fixed at a rate of Rs.
74.50 per quintal with a staple retrieval of 8.5 percent.
In 1982, the Government of India established a Sugar Development Fund with the aim to finance the industry in order to
implement better technologies in sugar manufacturing. Considering the encouraging growth in the sugar industry in India,
the Indian government decided to include few more states of India in the production of sugar and Chhattisgarh was thereby
chosen as one of them. The government of India has sanctioned huge amounts of loans for the advancement of sugar
industry in Chhattisgarh which has borne fruit since there has been a huge growth in the sugar industry of Chhattisgarh,
though it is yet to attain its full potential.
Apart from sugar production, Chhattisgarh sugar industry is involved in sugarcane cultivation as well. Sweets and products of
sugar are heavily consumed in parts of Chhattisgarh. This has led to an alarming rise in the sugar industry in Chhattisgarh.
Both the sugar factories located in Chhattisgarh have a crushing capacity of 2500 TCD. Sugar factories are being established
in different parts of the country including rural areas. Rural areas in India are experiencing better growth in the sugar
production. Traditional sweeteners and sugarcanes are the most wanted products consumed by the rural population. The
inhabitants in Chhattisgarh depend largely on the sweet products not only of their festivals but also sweets and other sugar
products are a basic stuff which every household prefers there. This has been one of the most significant factors that has led
to the success of Chhattisgarh sugar industry.
For more information contact : business@mapsofindia.com

Sugar Factories Details
Naveen Jindal
dt.- 8.12.97, Crushing Capacity- 2500
6, Prithvi Raj Road, New Delhi 110011, Location Sarang Garh, Dist. Raigarh, L.I.
TCD
No. 313
Chatisgarh S.S.K. Ltd dt.- 5.12.97, Crushing Capacity- 2500

Kurud, Dist. Raipur, L.I. No. 311 TCD
10. REFERENCES
• “Food Industry Report” ICRA Research Analysis (www.icra.com)
• Directorate of Sugar (www.directorateofsugar.com)
Capitaline Database
• (www.indiancommodity.com)
• “Sugar Industry” HDFC Securities Limited (www.site.securities.com)
• “Sugar manufacturing” World Bank Group
• FICCI “Food and Beverages Survey”
• “Global Competitiveness Analysis of India Sugar” Report December 2001.
• Indian Sugar Mills Association (www.isma.com)
• “Little Sweet: Indian Sugar Sector” Fitch Rating, Food/India Special Report
(www.site.securities.com)
• “Sugar Industry Sector Report” B&K Research Report 19th April, 2006
(www.site.securitie.com)
• “Sugar Sector Report” Karvy Stock Broking Limited
(www.site.securities.com)
• CIER – Industry Statistics (www.site.securites.com)
• Dhampur Sugar (www.sugarindia.com)
• Sugar Sector (www.mcxindia.com)
• “Industry Monitor Budget Issue” ICRA Information, Grading and Research
Service, March 2005. (www.icraindia.com)

• (www.wikipedia.com)
BIBLIOGRAPHYS
1. DIMAT LIBRARY.
2. ARTICLES IN NEWSPAPER(ET)
SUGAR GLOSSARY
Brix: A unit used to express the concentration of solids in aqueous sugar solutions.
Clarification: The process of separating insoluble suspended matter and some soluble
substances from cane juice, to produce a clear juice.
Fiber: Fiber is the cane plant’s vegetable skeleton in which juice is stored and through which
plant food, dissolved in water, is distributed throughout the plant. In the milling process, the
fiber cells are ruptusred, thus freeing the juice. The fiber content of sugar cane varies
according to variety. The normal range is 10% to 16%. A medium and consistent fiber content
is desirable in commercial varieties.
Filter Mud: In clarifying cane juice, the insoluble matter extracted from the juice forms a mud,
which is removed from the clarifiers, filtered and washed to recover the sugar it contains.
Filter mud consists of 25% solids and 75% water. The solids consist of mainly field soil, fiber,
calcium phosphate, denatured protein and a small amount of sugar.
Molasses: The black syrup, commonly known as molasses or ‘C’ syrup, remaining after the
sugar syrup has been boiled and passed through the centrifugal for the last item in a mill or
refinery. The sugar it contains cannot be removed economically. A typical analysis of final
molasses includes sucrose (34.1%), reducing sugars (16.5%), ash (11.3%), water (21.8%)
and various sugar, gums and acids (16.3%). The ash includes calcium, magnesium,
potassium, silicon, iron, and phosphorous and other elements in the form of inorganic salts.
Fructose: A sugar, which occurs in, fruit, the nectar of flowers, honey, and in cane juice and
sugar products. It is formed in equal quantity with glucose when sucrose is inverted. In
solution, it rotates polarized light to the left. It has the chemical composition C6H12O6.
Glucose: A sugar, which occurs naturally in grapes, honey, sweet fruits, and in cane juice
and sugar products. It can also be made from wheat. In the human body, sucrose is
converted into glucose and fructose before being used to provide energy. It has the chemical
composition C6H12O6 and may also be called dextrose.
HFCS: High Fructose Corn Syrup. This is the most common name for starch-based
fructose/glucose syrups. Corn is the starch base of these syrups. Other suitable but not as
widely used starch sources include rice, wheat and tapioca. In Europe HFCS is referred to as
iso-glucose.
Inversion: The conversion of sucrose, with the addition of water, into a mixture of equal
amounts of glucose and fructose. The action is one of hydrolysis and may be carried out by
the action of the enzyme invertase, or by heating with dilute acids. The liquid product from
this process is called invert sugar.
Juice: Cane juice consists of water with sugar and other substances dissolved in it and a
proportion of insoluble particles suspended in it.
Non-Centrifugal Sugar: In some areas of the world sugar cane juice is merely evaporated to
produce a crude raw sugar; the sugar crystals are not removed from the mother syrup in
centrifugals. The sugar is generally consumed where it is produced. Some of these sugars
are known as Jaggery, Gur, Piloncilo and Muscovado. Jaggery and Gur are made in India by
evaporating cane juice in an open pan. The juice is evaporated to almost dryness and is then
cast in open moulds or loaves. A large amount of sugar consumed in India is in this form.
Refined Sugar: Sugar, which has passed through the refining process (involving removal of
impurities) making it more suitable for direct human consumption or use in the manufacture of
other foods. Also known as white sugar.
Sucrose: Commonly referred to as sugar. A carbohydrate having the chemical composition

C12H22O11. It comprises two simple sugars - glucose and fructose.
Syrup: In refineries, syrup refers to the less pure solution, which is spun off crystals in
centrifugals. In the milling process syrup is the name of the product stream after it leaves the
evaporators and before it enters the pans.
Vaccum Pan: Cylindrical steel vessel in which a steam heated surface is used to boil sugar
syrups under partial vacuum at relatively low temperatures.
Source: www.sugarindia.com

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Sugar Industry Report Industry Analytics

“SUGAR INDUSTRY IN INDIA”

Submitted in partial fulfillment of the requirement of Chhattisgarh

Guided By: Submitted By:

Prof. Shhipra Sarkar Ms. NUPUR AGRAWAL

Disha Institute Of Management And Technology (DIMAT)

This is to certify that Ms NUPUR AGRAWAL,Of DIMAT, MBA Semester –I has

Internal Guide Academic Head

Ms. NUPUR AGRAWAL

PERFORMANCE OF SUGAR INDUSTRY

ORDERS ANSD ACTS OF SI

TOP 5 PLAYERS IN INDUSTRY

7. CHAPTER 7- CHHATTISGARH SUGAR INDUSTRY

Raw Materials Processed

2.3 The Manufacturing Process

1) Planting and harvesting

• Sugar cane requires an average temperature of 75 degrees Fahrenheit

Many developed countries do harvesting of both cane and sugar beet by

2) Preparation and Processing

• After the cane arrives at the sugar mills, it is mechanically or physically

After being purified, the clear juice undergoes vacuum evaporation to

3) Juice extraction pressing

4) Purification of juice—clarification and evaporation

• Crystallization is the next step in the manufacture of sugar. Crystallization

sugar crystals, called massecuite, is discharged into large containers

• The high-speed centrifugal action used to separate the massecuite into

7) Drying and Packaging

packed in the familiar packaging we see in grocery stores, in bulk

Mill sanitation is an important factor in quality control measures. Bacteriologists

3.1 Industry Description

The Sugar industry is described as industry, which is involved in the production

Sugar is typically one of the most significant contributors to dietary energy

As concerned with economic importance, sugar is an important source of export

Sugar is also called as Sucrose in technical terms. As sugar varies in quality, it is

Sugar products commonly used worldwide are as follows:

Granulated: Granulated Sugar is pure crystal sugar it can be classified into

Invert Sugar: It is a mixture of glucose and fructose in liquid form. It absorbs

Pharma Sugar 'Sucrose IP': It is a pharmaceutical grade sugar that complies

Jaggery or Gur or whole sugar is a pure, wholesome, traditional, unrefined,

3.3 By – Products of Sugar Industry

 Molasses – Molasses is used primarily in the production of alcohol

Source: Karvy Stock Broking Limited

5.1 History of the Indian Sugar Industry

The advent of modern sugar processing industry started by direct vacuum-pan

The post-protection story of India’s Sugar Industry is interesting. From a scanty

5.2 The Current Industry Scenario

5.3 Contribution to National Economy

5.4 Export & Imports

The Central Government took the following measures to promote export of

• Exemption from compulsory levy obligation on the export of sugar.

SECTOR WISE MILLS IN OPERATION IN INDIA

Table 7. Number of Sugar Mills in Operation in India and Average Capacity

Number of sugar mills Average ton crushed

Table 8. Number of Sugar Units in Operation

Period No. of Units % Increase in Average % Increase in

2003 453 52% 3340 102

5.5 India’s Supply – Demand Scenario

Table 10. Demand-Supply Position of India from SY 2001-02 to SY 2005-06

Mn/tones SY 01-02 SY 02-03 SY 03-04 SY 04-05 SY 05-06

Opening Stock 10.7 11.3 11.6 8.5 4.5

SMP 62.1 69.5 73.0 74.5 79.5

5.6 Sugar Production

5.7 Sugar Consumption