SUGAR INDUSTRY TECHNICAL SOLUTIONS
W.R.AHER. (B.E. M.I.E. B.O.E.)
EX.-TECHNICAL ADVISER, STM PROJECTS LTD,NEW DELHI.
INDIAN SUGAR INDUSTRY- FUTURE CORRECTIVE
ACTIONS FOR ATMANIRBHAR BHARAT.
INTRODUCTION: The
sugar mills are fed up due to excess sugar stock and FRP of sugarcane and interest
burden. Farmers are facing problem of delayed payments from sugar mills.
Customers are facing high prices of sugar in market. Now government has planned
for ATMANIRBHAR BHARAT ABHIYAN. We have to support it by finding solutions and to
overcome the troublesome situation.
Production of sugar of Indian sugar Industry is highest
in the world, next to Brazil. This year as per the estimates available in the
start of season2020-21 about rainfall and cane plantation, it was predicted
that season will be of 150-160 days. But in actual practice about 40% sugar
mills had closed their season within 100-120 days only. Thus this had caused
serious impact on economy of sugar mills because break even of sugar mill is
achieved only by running sugar mill operation up to150-160 days only. Therefore,
it is relevant to discuss pros and cons of sugar industry problems, for
corrective action in future.
During this crushing season about 530 sugar mills were operated
in India, 320 lakh ton sugar production is achieved in season 2020-21 and
15 lakh ton sugar will be diverted through B Heavy transferred to Ethanol.60
lakh MT sugar will be exported.
Indian sugarcane acreage during 2020-21 sugar season (SS) is estimated at 52.25 lakh hectares, registering 8 percent growth, as compared to 48.41 lakh hectares recorded during the 2019-20 sugar season. The government had fixed sugarcane FRP at Rs 275 per quintal for 2019-20 marketing year. Then,"The CCEA has approved the sugarcane FRP for the 2020-21 at Rs 285 per quintal," Information and Broadcasting Minister Prakash Javadekar said in a media.
MSP for sugar sale is Rs.2900/- per quintal since last crushing season. In the later stage government announced, Sugar mills cannot sale the sweetener below Rs 31 per kg.The Centre has hiked the minimum selling price (MSP) of sugar by Rs 2 per kg .The above statistics is not viable solution to sugar mills for paying FRP. This does not mean that every time sugar mills should ask Governments’ aid. Sugar mills and farmers shall discuss among them about past miserable events for better future.
FARMERS AND SUGARMILLS SHOULD PAY ATTENTION TO FOLLOWING CORRECTIVE ACTIONS TO BE “ATMANIRBHAR” IN FUTURE.
PROPOSED CORRECTIVE ACTIONS:
1) Cane development schemes shall be implemented with negligible capital investment and incentive schemes shall be declared for farmers for seed, fertilizers and pesticides.
2) Watershed development in the command area should be implemented to increase sugarcane plantation area with the help of government.
3) Sugar mills should stop capacity enhancement programme in future. Optimisation of sugar mill capacity by vertical growth is need of the day. Ethanol units shall be installed for which central government is providing financial assistance.
4) Sugar mills to provide financial assistance to farmers for ponds in their field.
5) Sugar mills have to increase their mill efficiency, reduce steam consumption and reduce the total sugar losses.
6) Excess employment of workers is to be stopped. Unwanted and unaccounted expenditures shall be controlled.
7) Interest burden due to sugar stock is to be minimised by professional sugar sale management.
8) Sugarcane FRP shall be paid in three instalments. First instalment with in fifteen days after cane, Second instalment before June end and third instalment after Dashahara as per payment practice in Gujarat. This will reduce interest burden of sugar mills and it will help farmers to pay dues timely.
9) Bye product units shall be run for longer period.
10) Pending government irrigation schemes should be implemented.
11) Sugar mills shall be run at least 150 days and crush high recovery, matured and registered cane.
12) There exists a potential in terms of increase in
productivity, extraction and production, is to be utilised.
13) Like in the past planners/policy makers/farmers
producers - should get together to form a policy of sugar and sugarcane price
and taxes also, acceptable to politicians. I.e. FRP of sugarcane and MSP of
sugar sale shall be linked to each other by techno economically developed
formula.
14)
Decontrol may not be the answer - at the same time
present pricing policy has to go to provide level playing field for all
sweeteners.
15)
Govt. can procure sugar from market and subsidies
for stock piling, to reduce interest burden of sugar mills.
16)
For the good of consumer, farmer and the mills
sugar price should move in a band, meaning monthly inflow to market to be
regulated by Government’s balanced export/import policy.
17)
Mills and farmers shall work together for
plantation of high recovery and high yield sugar cane varieties and extraction
through better harvesting and transportation with minimum cut to crush time.
18)
To become internationally competitive - i.e. cost
effective and quality producer, to be ready for free marketing in future.
CONCLUSION: With consistent policy and competitiveness India can be a regular player
in the international market. Farmers and mills will be in financially sound
position. Farmers’ unrest and agitations will be stopped automatically.
Customers, farmers and sugar mills will be in win- win position.
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Excellent article !!
ReplyDeletePoints raised are practical and need of hour
ReplyDelete1 Days of plant operations should be made in a way so it operate min of 150-160 days and max of 200 days
Higher days effects next crop
2 Cane price and sugar price linkage is must for healthy financial condition in long term
3 we have huge potential of power generation , Steam equipment / turbines of 45 bar or less must be planned to phase out , Govt must out incentive to speed up & motivate sector Therecshould Not be direct steam bleed to process Factory & Govt must ensure action to reduce & stop
4 Milling efficiency , bagasse saving must be a part of main steam focus for future power capacity setup
Points raised by you are well valid and need discussion & implementation
Sugar industry explained in all angles for prosperity of all stakeholders.
ReplyDeleteAher sir ,
hats off to your study and knowledge.
Very nice blog. Sugar industry shall see the suggestions seriously
ReplyDeleteSugar Industry in Java should be effesince so the suggestions should be implemented seriously
ReplyDeleteYour study is very usefull
As discussed over phone For survival of sugar industry, To my opinion group of like minded. Should write article in various areas and the same should be corrected and integrated finally. Broad views are required.
ReplyDeleteNo doubt your efforts are valuable and appreciable.
Dinesh Kadhav
Very good article
ReplyDeletePoints raised are relevant, practical and need of hour .one point should also seen as Sugar plants has great potential of power generation with same available fuel Govt must work out , motivate & subsidised sugar plant to enhance power plant if higher capacity to generate extra power ranging from 3 me to 30 mw based on plant cavity
ReplyDeleteRead as MW (Me)
ReplyDeleteKnowledgeable Article
ReplyDeleteVery nice article. Point raised are very practical. Need to take cognigence by the concern authority
ReplyDeleteAgriculture produce Sugar cane is the only Cheapest when compared other Agro prudcts vegitables, chillies etc are more than RS 15/ kg where as Sugar cane is Only RS 3/kg long term crop . Petrol price is below 39 per lit , Governments raised to more than 100 per lit gradually . It is very bad . There are somany Sugar Units in A.P;Telangana Tamilnadu Orissa States stopped more than 15 years back due to no Cane . They all run for more than 50 to 70 years with crore of rupees investment . They are now idle .What is the wrong . Who are responsible ?
ReplyDelete