sugar industry in india

1. SUGAR INDUSTRY
VIKASH YADAV
MBA 2ND SEM
SPCJ INSTITUTE

3. Sugar Industry =
Production + Processing + Marketing Of Sugar
• 100% sugar =80% sugarcane +20% sugar beet
• 2018 total sugar production 185 million tons
• India total production in 2018 = 35.9 million
tons

6. NATURE OF SUGAR INDUSTRY
• Seasonal In Nature
• Ideally Suited Cooperative Industry
• Manual Work Oriented
• Bulky Raw Material
• Transportation
• Demand Of Sucrose Rich Sugarcane

7. SUGAR PRICING IN INDIA
• MSP –Minimum Support Price
(After Harvesting)
• FRP- Fair And Remunerative Price
(Before Sowing)
FRP (19-20) =Rs 275/quintal

8. Demand and supply cycle

9. REGULATORY BODIES
• Central Government-: Regulates Pricing,
Subsidy, Loan Waivers, Exports To Earn
Foreign Currency.
• State Government -: Regulates Pricing,
Allocates Mills Based On Area And
Capacity, Potential Area For Sugarcane,
Ensures Funds Utilisation For The Welfare
Of Farmers.
• Indian Sugar Millers Association (ISMA)

10. STRENGTH
• sugar is more profitable than any other cash
crop.
• Favourable govt. policy because it is a essential
commodity
• Employment opportunity
• Ancillary activities employees nearly 5 lakhs
WEAKNESS
• labour is highly unutilised
• Use of old technology both mills and
transportation
• Currency risk

11. OPPORTUNITIES
• High value of by-products(bagasse)
• Huge potential to increase productivity
• Labour laws needed to be amended to deal
with surplus labour
THREAT
• Obsolete technology
• Quality of soil detiorate due to over use of
fertilizers
• Perishable crops need good transportation
• Ground water vulnerability

12. PESTEL
POLITICAL FACTOR :- Operates Under High
Political Pressure , Farmers Usually Deals
Through Cooperative Industry, On Which Local
Political Parties Have Strong Influence .They
Protect Interest Of Sugar Producer And Came
Up With FRP System.
ECONOMICAL FACTOR :- annually adds 1% of
GDP in govt. treasury through various sources
such as customs, excise, taxes and cess.

13. SOCIAL FACTOR :- Directly Employees 2
Million And Indirectly Employment
Generation Through Various Ancillary
Services.
TECHNOLOGICAL FACTORS :- GOI Taking
Initiatives For Upgradation Of Sugar Mills,
Increase The Plant Efficiencies And Energy
Saving.
ENVIRONMENTAL FACTOR :- Ethanol Emits
Less Carbon Dioxide Than Petrol Or Diesel.

14. LEGAL FACTOR :-The Industry Operates
Under Strict Legal Regulations, Although In
Some Cases It Affects The Industry And
Producers, Mostly It Ensures Financial
Support And Regulation To Balance The
Domestic Demand – Supply.

15. EMERGING TRENDS
• Analysing The Trend Production Will
Grow In Coming Years Also
• Adopting New Technologies While
Harvesting, Processing, Packaging And
Transportation
• Market Of Developed Economy Is
Saturated
• People Focusing On Their Health
• Alternative Of Regular Sugar