Sugar can be produced from sugarcane, sugar-beet or any other crop having sugar content. But in India, sugarcane is the main source of sugar. At present, this is the second largest agro-based industry of India after cotton textile industry. This industry involves a total capital investment of Rs. 1,250 crore and provides employment to 2.86 lakh workers. In addition, 2.50 crore sugarcane growers also get benefit from this industry. India has a long tradition of manufacturing sugar.
Sugar industry is an important agro-based industry that impacts rural livelihood of about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills. India is the second largest producer of sugar in the world after Brazil and is also the largest consumer. Indian sugar industry is a critical industry, as on one hand it services the domestic market, the largest in the world and on the other hand, it supports 50 million farmers and their families. It is the second largest agro based industry in India.
Sugar industry in India occupies a distinctive position in the economic and social fabric of the economy. It is playing a pivotal role especially in the upliftment of the rural economy.
Future Growth of India sugar market is expected to be led by increasing sugarcane yield, rising demand of sugar by the consumers and increasing sugar recovery rate. The sugar industry in India has witnessed a growth in recent years on account of rising number of sugar factories in the country as well as the increasing sugarcane yield in the country. The surge in growth of the industry is majorly originated from the rising sugar demand by the consumers as well as the institutional sector and also forms the increasing expenditure on food and beverages.
The sugar market in terms of revenues has grown at a CAGR of 5% from FY’2010-FY’2015. The sugar industry is expected to grow at a rate of ~%, doubling its worth to INR ~ lakh Crore by 2018. The sugar market in India will grow at a respectable rate due to the increasing sugarcane yield and dropping sugar prices. The Indian sugar industry that has already started talking of a record sugar production of almost 29-30 million tonnes in the 2018-19 crop marketing year that will start from October next year.
Today Indian sugar industry’s annual output is worth approximately Rs.80, 000 crores. There are 732 installed sugar factories in the country as on 31.07.2017, with sufficient crushing capacity to produce around 339 lakh MT of sugar. The capacity is roughly distributed equally between private sector units and cooperative sector units.