Sugar Industry is one of the largest industries in our country. GIVE REASON
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Globally in 2018, around 185 million tons of sugar was produced, led by India
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India has become largest producer of sugar cane/sugar producing 280 MnT of cane and 16.5 MnT of sugar in 1995-96, making it the largest producer of sugar in the world, representing about 20% of cane sugar production. India also produces another 10 MnT of traditional sweeteners (gur 9 MnT, khandsari 1 MnT). India also has a large consumer base, thus makes it quite vulnerable to international sugar market, in the event of surplus or deficit situation. At the sametime it has good potential and prospects.
Sugar production commenced in 1920's but it got industry status in late 20's/early 30's when India had 29 sugar mills producing just 100,000 tons of sugar. The industry, facing competition from imported sugar, sought tariff protection. Sugar production picked up under the Sugar Industry Protection Act passed in 1932 and country became self sufficient in 1935. Also cane pricing act was enforced to provide good cane price to farmer. This was followed by land reforms putting ceiling on land holdings to protect small farmers, formation of cane grower cooperatives and setting up of sugar mills jointly with farmers called as cooperative mills on ownership and sharing basis. Today this sector produces 60% of country's production.
Under the structured Industrial Development Policy, sugar industry was part of the Five-Year Plans introduced in 1951 and has been under the direct control of the Government ever since. Sugar industry is highly politicised and so closely controlled by the Government which has no parallel in the industry. Govt. control, covers all aspects of sugar business i.e. licensing/capacity/cane area, procurement/pricing/sugar pricing/distribution and Imports and exports.
Sugar scene in India has been that of protectionism. The mills, the farmers and the consumers all have been protected one way or another. Whereas the protection to farmer and consumer has been consistent, it has not been so consistent for the mill owners.
Overall government policy has given impressive results. The production has gone upto 16.5 MnT. per capita consumption up from 5 to 13 kg over a period of 3 decades. There is a potential - what is needed, is some changes in policy to make it world class player.
Sugar production commenced in 1920's but it got industry status in late 20's/early 30's when India had 29 sugar mills producing just 100,000 tons of sugar. The industry, facing competition from imported sugar, sought tariff protection. Sugar production picked up under the Sugar Industry Protection Act passed in 1932 and country became self sufficient in 1935. Also cane pricing act was enforced to provide good cane price to farmer. This was followed by land reforms putting ceiling on land holdings to protect small farmers, formation of cane grower cooperatives and setting up of sugar mills jointly with farmers called as cooperative mills on ownership and sharing basis. Today this sector produces 60% of country's production.
Under the structured Industrial Development Policy, sugar industry was part of the Five-Year Plans introduced in 1951 and has been under the direct control of the Government ever since. Sugar industry is highly politicised and so closely controlled by the Government which has no parallel in the industry. Govt. control, covers all aspects of sugar business i.e. licensing/capacity/cane area, procurement/pricing/sugar pricing/distribution and Imports and exports.
Sugar scene in India has been that of protectionism. The mills, the farmers and the consumers all have been protected one way or another. Whereas the protection to farmer and consumer has been consistent, it has not been so consistent for the mill owners.
Overall government policy has given impressive results. The production has gone upto 16.5 MnT. per capita consumption up from 5 to 13 kg over a period of 3 decades. There is a potential - what is needed, is some changes in policy to make it world class player.
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