Sugar sector must consider of diversifying its product line

LUCKNOW: For long-term sustainability, the sugar industry in Uttar Pradesh must consider of diversifying its product line. In a day-long seminar conducted on the sugar sector by the Confederation of Indian Industry, this was the popular opinion voiced by industry members as well as UP's infrastructure and industrial development commissioner, Anoop Mishra.

Apart from referring to the possible deregulation of some sugar mills in the state, Mishra talked about `net back pricing', where sugar cane prices would be directly linked with sugar prices and laid emphasis on extending the admixing of ethanol in petrol from the current 5% levels to boost the sugar business in state.

In the day-long symposium, while industry experts addressed concerns of the sugar sector, a brainstorming session, on the way forward, also followed. Head, UP state office, CII, Anil Shukla said: "In addition to the raw product, value added products is where the money is. All of it is possible by adding a few attachments to the existing sugar mill setup.'' Drawing attention to the potential of the sugar industry in tapping the food processing industry -- where UP is a big laggard -- sugar mills, Shukla suggested, could use existing infrastructure to process fruits, vegetables, or food grains.

Interestingly, UP's agrarian economy leads on several fronts, when it comes to its agricultural produce. Whether it is the production of mango -- pegged at 2.7 million tonnes in 2009 -- or its export potential -- Rs 753 crore -- or the production of potatoes, tomatoes and chillis in the state, the possibilities for creating value are immense. Shukla added: "On an average, the sugar cane crushing season lasts for 90 to 100 days. The remaining time of the year, the industry and infrastructure can be utilised for creating value through aiding the food processing industry.''

Interestingly, the export of processed food was valued at Rs 10,066 crore till 2008 in India, while the consumption of value added food was Rs 225,000 crore. Of this, according to industry experts, industry has an opportunity to tap a Rs 215,000 crore market, considering that UP has no large food processing facility in the state. As one of the largest industrial sectors of UP -- together Maharashtra and Uttar Pradesh account for nearly 60 per cent of the country's total sugar output, which totalled 26.5 million tonnes in the year ended September 2008 -- the sugar industry has the potential to grow even bigger, from its current 11% in the global sugar market.

source: TOI