Published May 14, 2024
Sugarcane competes with crops like cotton, oil seeds, and rice, affecting its supply and sugar production. When there's too much supply and low prices, this leads to price fluctuations and losses.
India's sugarcane yield per hectare is much lower than that of other major producers like Java and Hawaii, at just 64.5 tons compared to 90 and 121 tons, respectively.
The sugar industry operates seasonally, with a short crushing season lasting typically 4 to 7 months per year. This leads to economic losses, seasonal employment for workers, and underutilisation of sugar plants.
India's sugar recovery rate from sugarcane is below 10%, significantly lower than that of other major sugar-producing countries. This indicates inefficiency in the process of extracting sugar from the cane.
High sugarcane costs, inefficient technology, and small plant sizes contribute to India's high manufacturing expenses. Most sugar plants here lack economies of scale, with capacities of only 1,000 to 1,500 tons per day.
India's sugarcane industry faces challenges like low yield, inefficient processes, and small-scale plants. These factors contribute to high manufacturing costs and hinder the industry's global competitiveness.