UP can emerge global sugar sector player: Assocham

Recommends raising plant capacities, new technologies

The Associated Chambers of Commerce and Industry of India (Assocham) has said Uttar Pradesh had the potential to emerge as a big player in the global sugar market if the state government and state sugar industry made concerted efforts.

It has recommended steps like increasing the plant capacity of the sugar mills and harnessing modern technology to boost cane and sugar production.

The sugar industry is the largest organised sector in the state and plays a significant role in the state economy.

In its report, Assocham said Uttar Pradesh sugar industry was capable to meeting the exponentially growing demand for sugar across the globe.

The overall sugar production in the state registered a whopping 90 per cent growth in 2006-07 with sugar production of almost 8.5 million tonnes (MT) compared to 4.4 MT in 2000-01.

Assocham said the state government should provide a price mechanism to farmers for cane and make price policy for mills to avoid any confrontation between the stakeholders.

Uttar Pradesh registered 125 MT of cane production in 2007-08, which fell alarmingly to 110 MT in 2008-09. Sugarcane production across India was 348 MT in 2007-08, which drastically fell to 285 MT.

“With a view to increasing sugar production to meet domestic requirements and tap the global market, we recommend the state government to set up a Research and Development unit to develop qualitatively better cane plants for higher yield and disease-resistant crops,” Assocham National Secretary General D S Rawat said.

He suggested the government also promoted marketing and international quality control aspects for export.

The state registered 2.18 million hectares area under cane cultivation of 5.06 million hectares pan-India in 2007-08. The acreage fell to 2.08 million hectares in 2008-09 against 4.42 million hectares nationally.

Uttar Pradesh sugar sector is likely to grow by compound annual growth rate (CAGR) of 6.09 per cent from 2006-07 to 2019-20. Assocham said the CAGR calculation showed that the Uttar Pradesh sugar production would probably grow from 8.5 MT in 2006-07 to 14.9 MT by 2019-20.