Several Government Initiatives are Augmenting the Growth of Sugar Industry in India
According to a latest sugar industry 2018 report published by Research On Global Markets, India has produced 415 MMTs (million metric tons) of sugar in 2018, from an area of 5.2 Mn hectare, driven by a good monsoon season, and availability of high-yielding cane varieties, especially in Uttar Pradesh and Maharashtra. India is the second-largest manufacturer and largest consumer of sugar across the world. The Indian sugar market consists of 453 sugar mills, among which 252 mills operate in the co-operative sector, 134 mills operate in the private sector, and the remaining operate as public sector companies, for manufacturing sugar, ‘khandsari’ and ‘gur’.
Sugar production is expected to increase 4.2% on an annual basis to 33.8 MMTs. Sugar consumption is also expected to increase 3.9% YoY in 2018-19, and reach the mark of 27.5 MMTs; owing to growing population, higher income, and rising demand from wholesale buyers, the food processing industry, restaurants, and regular households.
According to Research On Global Markets, import of sugar in India is witnessing an increase while exports have shown a declining trend during the period 2014-2018, owing to increasing domestic consumption of sugar. Somalia, Belgium, Sudan, and Nepal are the main export destinations of sugarcane products from India. On the other hand, the highest sugar imports to India are from Brazil, Germany, China, and the USA.
Check out the Research on Global Markets report featured in this article:
Several initiatives have been undertaken by the Indian government to stabilize sugar prices, reduce cheaper imports, promote surplus stock clearance, improve the cash flow of sugar mills, ensure timely payment to farmers, and reduce sugarcane arrears. However, the Indian government sets the target for manufacturing sugar irrespective of the demand, thus leading to overproduction in the country.
Research On Global Markets also tracks the performance of the major players in the Indian sugar industry like Avadh Sugar & Energy Ltd., Bajaj Hindusthan Sugar Ltd., Balrampur Chini Mills Ltd., DCM Shriram Industries Ltd., Dhampur Sugar Mills Ltd., E.I.D. Parry India Ltd., Mawana Sugars Ltd., Shree Renuka Sugars Ltd., Triveni Engineering & Industries Ltd., and Upper Ganges Sugar & Industries Ltd., among others.
Key Highlights of the report are:
- Sugar production - volume-wise (MY 2014-2015-MY 2018-2019)
- Sugar production - country wise split (MY 2017-2018)
- Sugar consumption (MY 2014-2015-MY 2018-2019)
- Sugar consumption (volume-wise) - country wise split (MY 2017-2018)
- Key growth drivers of the market
- Key deterrents to the growth of the market
- Analysis of the competitive landscape in the sugar industry of India