Sugar India is one of the major producer–consumer of sugar in the world.

The sugar industry is the second largest agro-based industry, next to textiles in the country. About five lakh workers are directly employed in the sugar industry besides many more in industries, which utilize by-products of sugar industry as raw material. The country has 582 sugar factories with an aggregate capacity of 197.97 lakh tonne. Out of 582 sugar-producing units in the country, 410 are in the small segment, with 228 having a capacity of 2500 metric tonne Crushed per day (TCD) and 282 having a capacity of 2500 to 5000 TCD. Midsize segment has 64 units with capacities higher than 5000 TCD but below 10000 TCD, while only 8 units are large, having capacities of 10000 TCD and above. The industry is subject to statutory minimum price (SMP) for sugarcane fixed by the Central Government from year to year on the basis of the recommendations of the CACP taking into account cost of production of sugarcane, return to growers from alternative crops, fair consumer price of sugar, etc. SMP is fixed after consulting the State Governments and associations of sugar industry and cane growers. In addition to the SMP some states fix a price (generally higher then SMP) known as the State Advised Price (SAP). Under policy, a certain percentage of sugar production in factories is levied by the government on a pre-fixed price for distribution under PDS and the remaining production goes for free sale. The proportion of levy sugar has however been reduced from 40% to 10%. The Sugarcane Control Order stipulates that a new mill cannot be established within a distance of less than 1 km from an existing mill. Indian sugar exports experience wide fluctuations from year to year. With further increase in the ethanol doping to 10% from June 2007, the annual demand would rise up to about 1100 million litre. In Brazil, ethanol doping has been mandated by the government at 24%. 1/3rd of world ethanol production is from corn, the rest is produce from sugar based raw material like molasses or beet/juice molasses. Sugar’s by products are molasses & bagasse. One tonne of sugar produced generates one tonne surplus bagasse which can be used to generate 400Kwh of power. For every tonne of sugar produce 100 litre of ethanol can be produced.

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