Industry brainstorms crisis in sugar sector

The glut in the sugar market has kept sugar prices comparatively low affecting the profitability of sugar companies

Sugarcane, which is a leading cash crop supporting about 50 million farmers' households in India, is currently in the vortex of crisis.

While cane arrears have become an annual phenomenon putting growers to hardships, the glut in the international and domestic sugar market have kept sugar prices comparatively low affecting the profitability of sugar companies.

To brainstorm challenges facing industry, Sugar Technologists' Association of India (STAI) organised an all India seminar on 'Diminishing Sugarcane Productivity and Sugar Recovery in Northern India: Opportunities & Challenges' in association with National Sugar Institute (NSI), Kanpur here today.

In recent years, India has clocked record production of sugarcane and sugar, however productivity and sugar recovery in Northern India has remained stagnant for over a decade.

Compared to average yield of 100 tonnes/hectare in Tamil Nadu, Maharashtra & Karnataka, average yield in UP has averaged 59 tonnes/hectare despite being the largest sugarcane producing state in the country.

With challenges of growing population, increasing food and fodder needs, degradation of natural resources, climate change etc, there is an urgent need to enhance sugarcane yield and productivity to meet future sugar requirements, STAI president Dr G S C Rao said.

He suggested reduction in cost of production of sugar was vital towards achieving sustainability.

"Latest technologies in sugarcane processing, energy conservation devices to enhance power export and having options to produce ethanol with raw/white sugar are few measures to reduce the cost of sugar production," NSI director Narendra Mohan said.

"The prevailing crisis is due to glut in global sugar market, which should be preempted with multi-pronged strategies, including exports, product diversification, incentives etc," Dr Rao told Business Standard on the sidelines.

UP Agriculture Production Commissioner (APC) V N Garg said sugar institutes, millers and farmers should work in tandem for sustainable development of sugar industry.