Sugar Industry in Uttar Pradesh: Efficiency Still Holds the Key

The sugar industry is a major agro-based industry of Uttar Pradesh wherecropping pattern is largely subsistence-oriented and sugarcane is one ofthe important cash crops. During 2001-02, the state had 20.35 lakh ha areaunder sugarcane out of the total 44.03 lakh ha area under sugarcane in thecountry. The sugar industry has shown considerable instability in thelevel of production as a result of inter-dependence and inter-relationshipbetween sugarcane, gur, khandsari and white sugar, leading to fluctuationsin the production of sugarcane as well as sugar. These fluctuations emanatefrom the presence of various processing sectors and the differentialgovernmental policies. Such an uncertain state of affairs is neitherconducive to sound growth of the industry nor the growers. In view ofthis scenario, it was felt necessary to carry out an investigation, which canreveal the present status of sugar industry in terms of its efficiency inoperations. The study has revealed that most of the mills were in theefficiency range of 60-80 per cent. Efficiency was higher in the privatesector (81%), followed by the public (73%) and co-operative (66%) sectors.Though this study has advocated the continuation of partial decontrolpolicy, it has urged the policymakers to streamline strategies that promotestabilization of sugarcane economy and make the state a credible supplierof sugar in the international market, benefiting growers, processors and,in turn, consumers.