Inter-sectoral Dynamics of Sugarcane Production and Product Diversification for Food and Energy Security in India – An Economic Analysis

The study has analyzed the sugarcane production and its diversified processing for sugar, jaggery and coproducts based on secondary data for the period 1960–2015 and primary data collected during sugar season 2014–15. The economic analysis has revealed that sugarcane production was remunerative in the sub-tropical states. The costs on sugarcane production and sugar processing were high due to increase in input costs and over head expenses of sugar mills. The study has revealed that the sugar production and its consumption, as indicated by the CGRs, were phenomenal due to increase in the number of sugar mills and their processing capacity. It has concluded that the growth in sugar production was more due to increase in proportionate utilization of sugarcane production at the country level during the past 25 years. The study has concluded that establishment of integrated sugar-ethanol-energy complexes may be beneficial to farmers. The study has revealed that demand for jaggery and its value-added products is growing and therefore jaggery sector has to be modernized. The government has to take effective policy decisions to safeguard development of the sugar sector.