Performance Of Sugar Industries In India

India is on the first rank in sugar production with 20.2 Million tones followed by EU, Brazil, USA, China, Thailand, Mexico, Australia, Cuba and South Africa. Out of the 453 sugar mills in the country, 269 are in the cooperative sector, 184 in the private sector and 67 in the public sector. Besides, 136 units in the private sector are in various stages of implementation. In India sugar production follows a 5-7 year cycle. Sugar production increases over a 3-4 year period, reaches a high, which in turn, results in lower sugar prices. As a result of lower sugar price, realizations of sugar mills, the sugarcane arrears increase. The increase in sugarcane arrears results in lower sugarcane production, resulting in lower production for the next 2-3 years. Because of lower sugar production, the prices shoot up resulting in increased area under sugarcane cultivation during the next season.