Saturday 5 March 2011

Sugar Industry

History-


Sugar is one of the oldest commodities in the world and traces its origin in 4th century AD in India and China. In those days sugar was manufactured only from sugarcane. But both countries lost their initiatives to the European, American and Oceanic countries, as the eighteenth century witnessed the development of new technology to manufacture sugar from sugar beet. 
However, India is presently a dominant player in the global sugar industry along with Brazil in terms of production. Given the growing sugar production and the structural changes witnessed in Indian sugar industry, India is all set continue its domination at the global level.


Sugar consumption rate is highest in India as shown in the statistics received from USDA Foreign Agricultural Service. However, as per production is concerned, India has notched up 2nd position following Brazil, the largest sugar producer in the world. 



Maps-


The Indian sugar industry uses sugarcane in the production of sugar and hence maximum number of the companies is likely to be found in the sugarcane growing states of India including Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Andhra Pradesh. Uttar Pradesh alone accounts for 24% of the overall sugar production in the nation and Maharashtra's contribution can be totaled to 20%.

There are 453 sugar mills in India. Co-operative sector has 252 mills and private sector has 134 mills. Public sector boasts of around 67 mills. 



Overview-


The report provides a comprehensive picture of the Indian sugar market. The status of Indian sugar industry has been compared with the rest of the world in terms of raw material availability, crushing period, size of the sugar mill, production cost and prices in the report. The advantages that Indian sugar mills have over others in cost terms have been emphasized too.

Indian sugar industry is highly fragmented with organized and unorganized players. The unorganized players mainly produce Gur and Khandari, the less refined forms of sugar. The government had a controlling grip over the industry, which has slowly yet steadily given way to liberalization.

 The report provides comprehensive analysis about the structure of Indian sugar industry by explaining the above facets. Besides the classification of sugar products and by- products like molasses, their uses too have been extensively covered.

The production sugarcane is cyclical in nature. Hence the sugar production is also cyclical as it depends on the sugarcane production in the country. The report provides extensive information on the production of sugarcane, sugar and other sweeteners in the country in the recent years along with trends and analysis. This also includes a discussion about existing capacities in the country, trends in capacity additions, imports and production of by-products of sugar (molasses and cogeneration of power).

The report features a detailed demand analysis discussing the actual demand for sugar and other sweeteners, gur and khandari and their per capita consumption in India. This includes a trend analysis in demand in various regions of the country. The role of exports in the sugar industry has also been discussed.

The report gives an exhaustive cost analysis along with the pricing practices. Dual Pricing System is adopted in the Indian sugar industry, which includes sugar price in Public distribution system and the free sale sugar price. An analysis has been provided on the relationship between Indian and international sugar prices.

As the industry is a fragmented one, even leading players do not control more than 4 percent market in India. However, the situation is changing and players offlate are striving to increase their market share either by acquiring smaller mills or by going for green field capacity additions. 



Another notable trend is the shift from Gur and Khandsari to sugar in the rural areas. This should further increase the per capita consumption of sugar in India (currently around 15.6 kg). Besides the Indian urban market is slowly moving towards branded sugar. The potential in this segment seems to be very high. 

    1 comment:

    1. Yes agree with the points above. can you please tell me i need a automatic jaggery plant from where i can buy it

      ReplyDelete