Dairy Development :

Sugarcane Commodity
Presented by :
Group - B5

P39134 Juned Ahmed

P39107 Shruti Takalkhede
p39129 Ashmi Kuvera
P39085 Nikita
p39216 Preeti Verma
P39219 Roshan
p39094 Prudhvi Raj Arelli
P39108 Siddharth
Uniqueness of Commodity

– Tropical regions with hot and humid climate is most suited for sugarcane
– Eight months of high temperature and frost free weather condition is a must for
sugarcane growth
– Lighter soil with heavy clay and heavier soils are suitable for sugarcane
cultivation, when provided with adequate irrigation
– The production of sugarcane solely depends upon the extent of the rainfall
received
– It is an annual crop planted during February to April and harvested during
October to March
 Area, Production, Procurement

PRODUCTION – Sugarcane is produced in over 100 countries, mostly in

developing nations in tropical regions of the world
approx. 135 to 145 million ton
28% – Brazil & India Together Account for About 60 Percent of
39% Global Sugarcane Production
– The major sugarcane producing states in India are Uttar
3%
Pradesh, Maharashtra, Tamil Nadu, Karnataka, Andhra
5%
Pradesh, Bihar, Gujarat, Haryana, Punjab and
7%
18% Uttarakhand

Brazil India China

Thailand Pakistan Other
Area, Production, Procurement

Top 10 country wise area and production

Source:
http://www.agritech.tnau.ac.in/expert_s
ystem/sugar/botany&climate.html
 Area, Production, Procurement

State wise area and production

The local trading hubs of sugarcane in India are:
Rajasthan (East Champaran, West Champaran)
Bihar (Gopalganj, Madhubani, Nawada, Saran, Siwan, Patna,
Purnea, )
Gujarat (Rajkot)
Manipur (Thoubal)
Orissa (Bargarh, Sonepur)
Tamil Nadu (Coimbatore, Villupuram)
Uttar Pradesh (Pilibhit)
West Bengal (Kolkata) and Delhi

Source:http://www.agritech.tnau.ac.in/expert_system/sugar/bota
ny&climate.html
 Current status of pricing/returns
being realized by farmers
– The fair and remunerative prices for sugarcane is Rs 275 per quintal for the 2019-20 marketing year
(October-September)
– This price was increased from Rs 255 to Rs 275 in year 2018 by Cabinet Committee on Economic
Affairs (CCEA) with the recommendation of Commission for Agricultural Costs and Prices (CACP)
– The FRP is the minimum price that sugar mills have to pay to sugarcane farmers
– Factors for fixation of FRP of sugarcane are:
• Cost of production of sugarcane
• Inter-crop price parity
• Recovery of sugar from sugarcane
• Price at which sugar is sold by sugar producers
• Reasonable margins for the growers of sugarcane on account of risk and profits
• The realization made from sale of byproducts or their imputed value
• Availability of sugar to consumers at a fair price
 Issues faced by farmers pertaining
to the selected commodity

– Low yield per hectare

– Seasonality - High Fluctuations in production
– Inadequate irrigation, small and fragmented holdings
– Cost of production
– labour intensive cultivation
– Exploitation of farmers due to monopoly & lack of competition.
– Lack of technical training to farmers and fertilizers
Ways by which a farmer tried to
safeguard & ensure returns

– Crop insurance – (Gov and private players- eg. PMFBY)

– Diversifying the markets – (apart from mills , selling at open
market)
– Marginal farmers selling to Big farmers and middle men.
– Market linkage – Aggregators
Possibilities of Value Addition in
the selected commodity
Sugar cane can be processed into various raw material as
well as ready to consume products like :
– Gur
– Molasses
– Baggases
– Cattle Food and Alcohol
Trade dynamics for the selected
commodity

– Higher prices in domestic market – need for policy

change
– 2nd largest producer and 4th largest exporter in world
(mostly to middle east and east Africa). India is export
surplus.
– Price realization is less in those countries
Thank you