28 April, 2020
7 Min Read
Sugar Industry in India
Part of: GS-I- Geography (PT-MAINS-PERSONALITY TEST)
Sugarcane farmers are facing a payments crisis running into thousands of Crores of Rupees. In Maharashtra alone the state’s sugar mills failed to disburse the entire amount of Rs 7,450.9 crore as payment for cane to farmers as the ‘fair and remunerative price’(FRP), according to Maharashtra government’s commissionerate of sugar. Similar situation regarding delays in Uttar Pradesh led to recent farmer protest bringing in light the crisis in sugar industry.
Sugar Industry’s Location in India
Problems of Sugar Industry
Fair and Renumerative Price
State Advised Price (SAP)
The sector needs infusion of capital, but also policy measures and structural changes. Technological upgradation in age old mills especially in Uttar Pradesh and Bihar to improve efficiency in production. Major sugar producing States like Maharashtra and Karnataka have migrated to the progressive revenue-sharing formula other states should also introduce revenue-sharing formula to ensure farmers receive a share in the profits. When domestic production is likely to be in excess of domestic consumption government should encourage exports through policy changes.
Source: Web/Aspire resource
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