Question

Why is indian sugarcane production cost high?

Answer 1

Maharashtra is the highest sugar producing state of India. It's sugarcane yield in 2011-2012 was 80.1 t/ha ,compared to the yield of 59.6 t/ha for the second highest producing state Uttar Pradesh and national average of 70.3 t/ha. The average sugar recovery rate of the four sugarcane cultivation methods in Maharashtra was 11.32 % in 2011-2012 ,the recovery rate of Adsali sugarcane was even higher at 12.3 %. The Maharashtra average was way above that of UP at 9.16 % and all India rate of 10.2 % . In fact the land productivity adjusted for recovery rate is even higher for Maharashtra at 98.8 t/ha (161.14 t/ha for Adsali) compared to 61.04 t/ha for UP . The yield per month when adjusted for recovery rate is 7.56 t/ha/month compared to 6.33 t/ha/month for UP.

Answer 2

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Higher production at a time when Fair and Remunerative Price (FRP) increased will reduce the profitability of mills. According to the Indian Sugar Mills Association (ISMA) sugar production data for the current sugar season until the mid of December 2017 shows a 30 percent increase in sugar

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