News Highlight
According to the latest National Statistical Office (NSO) report, six sugarcane-producing northern Indian states saw a 42 per cent increase in their output value between 2011 and 2020.
Key Takeaway
- As per the National Statistical Office (NSO) report, Sugarcane production in India is shifting from South to North.
- The report, consisting of data on the output value from agriculture, forestry, and fishing, shows the cumulative production value of sugarcane in Bihar, Haryana, Punjab, Madhya Pradesh, Uttar Pradesh, and Uttarakhand increased from Rs 30,216 crore to Rs 42,920 crore in real terms over the decade.
- The sugarcane output in the five southern states of Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, and Maharashtra declined from Rs 26,823 crore to Rs 18,119 crore in the corresponding period.
- This northward shift in sugarcane production is due to the larger irrigated areas in the region and higher State Advisory Price (SAP) over and above the Centre’s Fair and Remunerative Price (FRP) being offered in the north, especially by Uttar Pradesh.
Sugarcane crop
- Temperature
- It requires a hot and humid climate with an average temperature of 21-degree celsius to 27-degree celsius.
- Rainfall
- 75-150 cm rainfall is favourable for sugarcane cultivation.
- Soil
- Sugarcane can grow in any soil which can retain moisture. The ideal soil for it is deep rich loamy soil.
- Season
- It is a long mature crop planted in February and April.
- Harvesting begins in October and November; hence it is a Kharif crop.
- Distribution
- The Satluj-Ganga plain from Punjab to Bihar contains 51% of the total area and 60% of the country’s total production.
- The black soil belt from Maharashtra to Tamil Nadu along the eastern slopes of the Western Ghats.
- Coastal Andhra Pradesh and Krishna river valley.
- The top Sugarcane Producing States
- Uttar Pradesh
- Maharashtra
- Karnataka
- Tamil Nadu
- Bihar
Sugar industry in India
- The sugar industry processes sugar cane and sugar beet to manufacture edible sugar.
Significance of the Sugar industry in India
- Source of employment
- It provides direct employment to over 5 lakh skilled and semi-skilled labourers in sugar mills and allied industries across the nation.
- By-products
- The various by-products of the sugar industry also contribute to economic growth and promote several allied industries.
- Sugarcane has emerged as a multi-product crop used as an essential raw material for producing sugar, ethanol, paper, electricity, and ancillary products.
- For livestock feeding
- Molasses from sugar cane is used for alcohol production and livestock feeding since it is highly nutritious.
- Biofuel
- In India, the vast majority of ethanol is produced from sugarcane molasses, a by-product of sugar. Therefore, ethanol-blended fuel can help in reducing crude oil imports.
- Bagasse
- Bagasse continues to be a fuel. But it’s a suitable raw material for the paper industry. 30% of cellulose comes from agricultural residues. The collection of surplus bagasse makes paper units uneconomical.
Issues and challenges of the Sugar Industry
- Low Yield of Sugarcane
- India’s yield per hectare are meagre compared to some of the significant sugarcane-producing countries of the world.
- For example, India’s yield is only 64.5 tonnes/hectare compared to 90 tonnes in Java and 121 tonnes in Hawaii.
- Uncertain Production Output
- Sugarcane has to compete with other foods and cash crops like cotton, oil seeds, rice, etc. This affects the supply of sugarcane to the mills, and the production of sugar also varies from year to year causing fluctuations in prices and leading to losses in times of excess output due to low prices.
- Short crushing season
- Sugar production is a seasonal industry with a short crushing season, usually lasting from 4 to 7 months a year.
- It causes financial loss, seasonal employment for workers, and a lack of full utilisation of sugar mills.
- High Production cost
- The high cost of sugarcane, inefficient technology, the uneconomic production process and heavy excise duty results in a high cost of manufacturing.
- Government policy and control
- The government has been controlling sugar prices through various policy interventions like export duty, imposition of a stock limit on sugar mills, change in meteorology rule etc., to balance supply-demand mismatch. But these controls have resulted in unremunerative sugar prices, increasing arrears for sugar mills, and dues to be paid to sugarcane farmers.
- Climate change
- Climate change and associated issues, such as extreme rainfall and drought, lead to the loss of crops.
Government initiatives
- Fair and Remunerative Price
- It is the minimum price that the sugar mills have to pay to farmers.
- It is determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders.
- Ratooning in sugarcane
- In this method, during the first harvest, the sugarcane is cut, leaving a little bit of the stalk in the soil with the roots. The stem soon puts out new shoots or ratoons. The second or any other successive crop obtained from the roots of the leftover crop is called ratoon.
- Sugarcane Research Institute, Coimbatore, introduced the system of ratooning to reduce the cost of sugarcane cultivation.
- Sustainable Sugarcane Initiative
- It is an innovative credit-plus approach of NABARD, which helps integrate the twin drip irrigation system with resource-efficient sugarcane agricultural practices.
Way forward
- Capital infusion
- The sector needs an infusion of capital, policy measures and structural changes—technological upgradation in old mills, especially in Uttar Pradesh and Bihar, to improve production efficiency.
- Encourage exports
- When domestic production is likely to be more than domestic consumption, the government should encourage exports through policy changes.
- Food processing
- Mills should be allowed to produce more alcohol.
- It will improve the financial situation of mills, and they could afford to pay farmers a price based on the sugar market prices.
- More research and development
- The production cost of sugar in India is one of the highest in the world. Therefore, intense research is required to increase sugarcane production in the agricultural field and to introduce new technology for production efficiency in sugar mills.
- Ethanol production
- Government should encourage ethanol production. It will bring down the country’s oil import bill, help divert sucrose to ethanol, and balance excess sugar production.
National Statistical Office (NSO)
- Foundation
- The NSO was first envisaged by Rangarajan Commission to implement and maintain statistical standards and coordinate statistical activities of Central and State agencies as laid down by the National Statistical Commission (NSC).
- About
- The NSO was formed by merging the National Sample Survey Office (NSSO), Computer Centre and Central Statistical Office (CSO).
- Composition
- There will be three Director Generals —DG (Statistics), DG (Coordination, Administration and Policy) and DG (National Sample Survey)
- Headed by
- The NSO is headed by the Ministry of Statistics and Programme Implementation (MOSPI).
Content Source: Business Standard