Inter- and Intra-sectoral Linkages and Priorities for Transforming Sugar Sector of India

The paper has looked into the nature and extent of linkages that exist between different sub-sectors of sugar industry in India. Specifically, it has analyzed the linkages between sugarcane cultivators and processing units (sugar mills), sugar mills and gur and khandsari units, sugar mills and by-product industry of ethanol and power generation, and sugarcane and livestock sector. The paper has observed that Indian sugar sector's priorities and linkages are oriented towards ensuring availability of sugar for the domestic market and the sugar profile of the country has been different from that of major competing countries. The degree to which sugar mills and growers are integrated is the key factor in understanding various sugarcane-marketing methods that have evolved. The most important factor influencing farm-factory relations in India is the cane marketing wherein different aspects such as harvesting, cane supply arrangements, various Marketing Acts and Orders, transportation, price fixation and cane price payments play important roles. The gur and khandsari sector although provides cushioning effect to the sugar sector during surplus years, has not assumed significance to the extent as may affect the viability of sugar mills. Molasses are used for the production of alcohol in the country and in the event of its shortage, gur is diverted for making country liquor. The other renewable energy sector attached with the sugar industry is that of ethanol, and there is tremendous growth potential in this sector to make E10 blending an achievable option. Technological changes to enhance the capability of sugar mills are required to harness huge power potential in cogeneration. The emphasis on sugar industry financing sugarcane research, ICTs in cane marketing, awareness about quality jaggery production, use of press mud as manure, development of feeds from sugarcane tops, intercropping of pulses and mechanization of planting and harvesting operations are the areas required for integrating and transforming the sugar sector of India.