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Economic Impact
Sugarcane is a vital cash crop in India, contributing substantially to the agricultural GDP. It also plays a key role in the country’s bioenergy sector, particularly in ethanol production, supporting India’s renewable energy goals.
In the 2023 fiscal year alone, Sugarcane accounted for 776 billion Indian rupees (around 9 billion USD)
Sugarcane in Energy Production
Gasoline in India contains at least 22% bio-ethanol.
While most of India's energy comes from coal, it has been shown in Brazil that bagasse produced annually has the potential to meet 20% of Brazil's energy consumption in 2020.
Current technologies can produce over 100 kWh per ton of bagasse, and with further technological advancements, energy plants can produce from 200 to over 300 kWh per ton of bagasse.
*A brief flow chart of the production chain of sugarcane in India. Not a detailed map of the entire process.
Diverse Production System
India’s sugarcane industry varies regionally, with cultivation practices ranging from small-scale farms to large commercial operations. This diversity provides a comprehensive case study of sugarcane’s role in different socio-economic settings.
Different regions, like the tropical south and sub-tropical north, use distinct farming methods due to their differences in climate and soil. Since sugarcane is a tropical crop, states within the tropical belts have a more favorable agro-climatic condition for its growth. As a result, sugarcane is extensively grown in southern India, with significantly higher yields and sugar extraction than in subtropical locations.
Farmers also adopt various cropping patterns, like intercropping and crop rotation, to maximize production yields. Integration of waste from livestock and fisheries as natural fertilizer are also used to further boost income and sustainability in some areas.
The efficient use of sugarcane by-products, like molasses and bagasse, in energy production and other consumer products adds more diversity to how this crop is produced and utilized.
Stakeholder Map of the Sugarcane Supply Chain in India:
Sugar is one of the commodities listed in the Essential Commodities Act 1955. The Indian government comprehensively regulates the purchase of sugarcane and sale of sugar. Regulations are applied along the entire value chain, including land demarcation, sugarcane procurement, sugarcane price, sugar production and sugar sales by mills in domestic and international markets.
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