1. Medium Term Outlook for Indian Agriculture:
Sugar Sector
Roshan Tamak
Business Head (Sugar),
Olam Agro India Ltd

2. Global Sugar Industry
Brazil and India are the highest sugar producing nations in the world

3. Global per capita consumption of sugar

4. Indian Sugar Industry a snapshot
Particulars
UOM
Crushing Season
Sugar Factories in Operation
Nos
527
529
Crushing Capacity
Million TCD
24,2
24,8
Sugarcane Crushed
mmt
239,8
256,9
Sugar Produced
Mmt
24,4
26,3
Sugar Recovery %
10,2
Yield of Sugarcane
MT/Hect
70,1
70,3

5. Sugarcane Area Contribution of Major States

6. India: Area under Sugarcane cultivation
*above numbers are in 000 Hectares
States
Season
Average
India
4520
3938
3662
4201
5151
5043
4408
4202
4944
5086
4516
Andhra Pradesh
233
209
210
230
264
247
200
158
192
204
215
Gujarat
203
176
197
214
208
188
202
Karnataka
383
243
178
219
326
296
421
430
303
Maharastra
573
443
324
501
1049
1088
770
736
964
1022
747
Tamil Nadu
261
232
336
391
352
323
314
382
312
Uttar Pradesh
2149
2030
1955
2156
2247
2179
2058
1977
2125
2162
2104
There is no significant expansion in the acreage of sugarcane

7. India- Sugar recovery %
States
Season
Average
India
10,36
10,22
10,17
10,21
10,16
10,55
10,03
10,20
10,25
10,23
Andhra Pradesh
10,10
10,31
10,65
10,05
9,70
10,12
9,89
9,28
9,75
9,79
9,96
Gujarat
10,58
10,93
10,76
10,82
10,64
10,67
10,72
10,53
9,99
10,61
10,63
Karnataka
10,79
10,19
10,11
10,57
10,87
10,28
10,70
10,91
11,14
Maharastra
11,64
10,92
11,39
11,68
11,92
11,44
11,51
11,29
11,65
11,48
Tamil Nadu
9,88
9,92
9,64
9,24
9,25
9,32
9,62
8,93
9,08
9,31
9,42
Uttar Pradesh
9,53
9,82
9,51
9,47
8,94
9,13
9,14
9,07
Sugar recovery is more or less stagnant over the decade

8. India –Sugarcane yield /hec
(In Tons per hectares)
States
Season
Average
India 69 67 64 59 65 68 66 70
Andhra Pradesh 82 83 72 75 77 78 74
Gujarat 71 73 81 76
Karnataka
103 85 80 88 90 94
Maharastra 58 63 79
Tamil Nadu
105
102 93 92
101
104
108
106
Uttar Pradesh 55 56 61 60 57 52
Sugarcane productivity is almost stagnant over the years.

9. Limitations in increasing productivity
Cyclicality in sugar Industry
Unpredictable climate
Depleting water resources
Crop competition and food security challenge
Land fragmentation and small land holdings
Depleting soil health/monoculture
Increasing cost of cultivation-inputs/labor etc
Improper sugarcane varietal mix and low sugar yield
Lack of focus on Cane research and development

10. Sugar Production and Sugar Consumption

11. India- State wise per capita consumption Wide gap from 10-28 Kg/Person
States with relatively lesser demand will soon catch up with the high sugar consumption
Wide gap from Kg/Person

12. India- Projected domestic sugar consumption
Increasing demand expected to reach 30 million tons by 2020

13. Shared Vision Consumers Farmers & Millers Policy Makers
Fulfill customers needs
Farmers & Millers
Policy Makers
Self sufficiency to meet domestic demand
Social welfare of stakeholders
Contribution to India’s energy requirement
Economic profit driven growth
Risk and cost minimization
Collaboration between each other
Towards a more efficient sugar industry

14. Potential & Opportunities

15. Action Agenda
Implementation of sugar & cane price linkage formula ( Dr Rangarajan Committee)
Integration of Indian commodity exchanges with the world market
Stable trade policy-import/export (Timely decisions)
Mandatory support for Cogen Power (tariff support/REC benefit)
Implementation of Ethanol Blending policy (10% -recently announced)
Proper coordination for research and development (IISR,SBI,VSI,UPSCR)
Integration of all Govt schemes like SDF,NFSM,RKVY for the purpose of sugarcane development and infrastructure improvement
Water harvesting/drip irrigation to be taken up as a major initiative
Development of Micro entrepreneurs/custom hiring model
Training modules for growers/staff to be developed and implemented

16. Thank you!