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5/14/2018 Essay on Sugar Industry in India

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Essay on Sugar Industry in India

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Read this essay to learn about Sugar Industry. After reading

this essay you will learn about: 1. Development of Sugar
Industry 2. Location of the Industry 3. Dispersion of Sugar
Industry 4. Problems of Sugar Industry 5. Present Position
and Production.

Essay # Development of Sugar Industry:

In 1903, first Indian sugar mill was started in Bihar. Though,

according to some reports, pioneer attempts were made in North
Bihar to erect sugar mills. Possibly 5 sugar mills were constructed in
Bihar in 1903-1908. Since then, the industry made great improvement
in her sugar production. In 1931, only 31 mills were said to be working
in the upper Ganga plain.

Due to increase of consumption, number of mills went up to 140 in

1945. In 1960-61, total number of sugar mills increased to 173, in
1981-82, around 300. At the end of 1995, total number of sugar mills
increased in India to 385. In this period, total production increased to
8 million tonnes. During Independence, Indian sugar production was
short of its requirement.


In the First Five Year Plan period, she has to import Rs. 25 crores of
sugar annually, but after the end of the First Five Year Plan, India

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5/14/2018 Essay on Sugar Industry in India

became exporter of sugar. In the year 1965, India exported sugar

worth Rs. 30 crores.

Till mid-70’s, sugar industry contributed a handsome amount the

national exchequer through a substantial and lucrative export. India is
now the third largest producer of sugar cane, next only to Cuba and
Brazil, covering an area of 3 million hectares.

Essay # Location of the Industry:

Most of the sugar mills are located within upper and middle Ganga
plain. Peninsular India is also a leading sugar cane producing area.
Compared to the Ganga plain, production per acre is higher in the
peninsular plateau.

Maximum number of sugar mills are located in Uttar Pradesh (95),

followed by Maharashtra (80), Bihar (28), Andhra Pradesh (27),
Karnataka (24), Tamil Nadu (20), Gujarat (15), Punjab (10), Madhya
Pradesh (7), Haryana (5) and Kerala, Rajasthan and Orissa having
three mills each and West Bengal and Assam is having two mills each.


State-wise distribution of the industry are as follows:

Uttar Pradesh:

Allahabad, Lucknow, Kanpur, Gorakhpur, Shahjahanpur, Meerut,

Bareilly, Moradabad, Bulandh Shahr, Barabanki, etc.


Darbhanga, Chhapra, Gaya, Saharsh, Saran, Muzaffarpur etc.


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5/14/2018 Essay on Sugar Industry in India

Kolhapur, Solapur, Nasik, Pune, Satara.

Andhra Pradesh:

Hospet, Belari, Chikmagalur, Nizamabad, Kakinada


Tamil Nadu:

Coimbatore, North Arcot, Tiruchirapalli,


Panipat, Rohtak, Kurukhetra.


Amritsar, Ambala, Gurudaspur.

Madhya Pradesh:



Vadodara, Jamnagar, Surat.

West Bengal:

Nadia, Murshidabad.

Essay # Dispersion of Sugar Industry:

Recently sugar industry is gradually trying to disperse in the

peninsular interior and Deccan region, notably in Maharashtra, Tamil
Nadu and Karnataka.

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5/14/2018 Essay on Sugar Industry in India

Reasons for this centrifugal trend of the industry are:

1. In the south Indian peninsula, due to tropical climate, cane grows

better than in north India.

2. Production per unit land is also higher in Maharashtra and Tamil

Nadu. Per acre production in Maharashtra is 35 tonnes compared to
15 to 20 tonnes in Bihar and Uttar Pradesh. Material index regarding
recovery of sucrose content is also favourable. Recovery percentage is
one tonne of sugar from 8 tonnes of cane.

3. Due to heavy production and longer duration of maturing, south

Indian sugar plants remain open for longer periods. The mills remain
open ten per cent more compared to north Indian mills. Besides this,
productivity of the worker is also higher than in north India.

4. South Indian plants are modern and sophisticated.

5. Proximity to large south Indian market.

6. Irrigation facilities throughout the year.

7. Good transport network.

8. Export facilities.

Despite all these advantages, progress of south Indian sugar industry

is not at all satisfactory.

Number of reasons are liable for this slow growth.

These are:

1. Constant rivalry between cash crop and food-grain and sugar cane
with other cash crops like cotton, ground-nut etc.

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5/14/2018 Essay on Sugar Industry in India

2. No prior history of sugar cultivation from ancient period in this

zone. Absence of large and extensive sugar tract.

3. Cost of sugar cane production is much higher than other regions.

Essay # Problems of Sugar Industry:

Sugar industry suffers from a number of problems:

1. Cost of production is highest among the leading sugar-producing

countries. This is four times of Cuba, three times of Brazil.

2. Short crushing season that lasts only 145 days. Remaining part of
the year, the sugar mills remain closed.

3. Due to seasonal nature of the job, workers lack professional ability

and traditional skill.

4. Feudal nature of the industrial set-up.

5. Lack of substantial amount of cane, even in the peak period.

6. Low sucrose content in the cane.

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5/14/2018 Essay on Sugar Industry in India

Essay # Present Position and Production:

Sugar industry in India had witnessed a steady progress over the

years. From a paltry 29 mills in 1930-31, the number of mills has
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5/14/2018 Essay on Sugar Industry in India

reached to 138 in 1950-51 to 453 in 2002-03.

India, at present is the second largest producer of sugar, next only to

Brazil, while it is the largest consumer of sugar.

The 450 sugar mills spread over the country, with an annual
cumulative turnover of 150 billion rupees provide employment to 5
lakh workers directly and 45 million farmers in directly.

The growth of the industry is more horizontal (increase of no. of units)

rather vertical (increase of production capacity)

Overall India is a surplus-producing country and able to export a

small proportion of its production. But to huge internal demand
(around 19 million tonnes), some years the country has to import
some amount of sugar.

In 2003-04, the country was deficient of sugar production. It

produced only 13.8 million tonnes. However in 2002-03 production
was 20.1 million tonnes and the country was able to export some
amount of sugar. In 2004-05 production touched an all-time low of
12.8 million tonnes. However, in 2005-06 expected production is 18.5
million tonnes.

Related Articles:
1. Sugar Industry in India: Growth; Problems and Distribution

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5/14/2018 Essay on Sugar Industry in India

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