Question

State two major problems faced by the sugar industry.

Describe the problems faced by sugar industry in India.

Answer 1

Problems faced by the sugar industry are:

• Short Crushing Season: The industry operates only for 4–6 months in a year due to the seasonal nature of sugarcane, leading to underutilization of capacity.
• Low Yield of Sugarcane: The per hectare yield of sugarcane in India is low compared to other countries, affecting overall sugar production.
• Low Sugar Recovery Rate: Indian sugarcane has lower sucrose content, leading to a low recovery rate of sugar from cane.
• Delayed Payments to Farmers: Financial difficulties in sugar mills often cause delays in paying sugarcane farmers, leading to unrest and reduced cane supply.
• High Cost of Production: Inefficient mills, outdated machinery, and high input costs result in low productivity and competitiveness.
• Uneconomic Size of Mills: Many mills are too small to operate efficiently and lack the economies of scale needed for profitability.
• Transport and Storage Issues: Poor transport facilities and inadequate storage for sugar and by-products create logistical challenges.
• Competition from Gur and Khandsari Units: Traditional units divert a part of the sugarcane meant for sugar mills, reducing the raw material supply.
• Government Controls: Price control, cane reservation areas, and export-import policies sometimes affect the functioning and profitability of mills.