The Problems and Remedies of Sugar Industry in Tamilnadu

Abstract

Agriculture is the backbone of the Indian economy and despite concerned industrialization in the last six decades; agriculture occupies a place of pride. Agriculture provides employment to around 65 percent of the total work force in the country. Indian agriculture also arises from the role it plays in India's trade. Agricultural products like tea, sugar, oil seeds, tobacco, spices etc., constituted the main item of export of India. Sugar is a sector of significant importance to the national economy. While consumption of sugar has been growing historically, the production has been cyclical. At present, the sugar industry is regulated across the value chain. Investments in by--products are at a nascent stage, and the sector has struggled to generate a return on invested capital in excess of its cost of capital in most years, primarily due to a high mandated fixed cane price and a volatile sugar price. In this case, to motivate the farmers to grow cane, various financial incentives or subsidies are required to be offered by the sugar mills besides cane price and transport subsidy notify by the government sourcing of the raw materials beyond the commenced area that requires permissions from the regulating authority. It will create the confidents among the farmers to grow sugarcane and it solves the problems of sugar mills in the state.