Issues and Prospects of Sugar Industry: An Evidence from India

Issues and Prospects of Sugar Industry: An Evidence from India

Ajit Dhar Dubey (DDU Gorakhpur University, India)
DOI: 10.4018/978-1-4666-7470-7.ch016


This chapter explains the sugar industry of Uttar Pradesh, which plays a significant role in the economy. An attempt has been made to critically analyze the role of cane growers and the significant number of employees who are directly employed in this industry. Statistical figures suggest that, during 2010-12, the sugar industry in Uttar Pradesh paid around.78.27 Crores of Rupees as cane price to the growers and around .15 Crores of Rupees as wages to about 30,000 persons employed directly in the industry. The industry contributed more than 20.8 Crores of Rupees to government exchequer in the form of cane cess and excise duty on sugar and molasses in addition to another sizeable amount by way of commercial taxes, income tax, and other levies. An in-depth study is carried out to understand decent working time conditions of these cane workers who are the major factors for increasing production in this sector. The study focuses on increasing the productivity of these cane workers by effective allocation of time based on gender and age.
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In the same year a total of 3.44 lakh tonnes of sugar was produced worth about Rs.129 crores at the issues price in 1984. Leaving aside all this 1.55 lakh tonnes of molasses (a raw material for alcohol and prospective source of renewable energy). 13.36 lakh tonnes of baggase (a raw material of paper industry if not used as fuel) and 1.34 lakh tonnes of press-mud (a good manure) was also produced by the industry as by-products, which accounted for another several crores of rupees Uttar Pradesh, specially North Uttar Pradesh cannot afford to lose sugar industry at any cost. It is so important vehicle for carrying progressive influences into the country side of Uttar Pradesh that no other agro-based industry can compete with it. Sugar factories came into existence in Uttar Pradesh in the beginning of 20th century, when indigo plantation disappeared. The industry developed very firstly during 1930, when the total number of sugar factories rose to 36. Table 1 shows the increase in the number of sugar factories since 1931-32 to 2012-13.

Table 1.
Number of working sugar factories in Uttar Pradesh
Uttar Pradesh121933343441
All India3156111128137153

Sources: Indian Finance Year Book, 2013, P.272.

Table 1 shows that up to 2012-13 there was a continuous increase in the number of sugar factories in Uttar Pradesh In 2012-13, the number rose to 41 the fortune of the industry in Uttar Pradesh has been fluctuating.


Objectives Of The Study

One of the essential factors for unrestricted growth and functioning of sugar industry is a satisfied, committed and trained labour force. Achievement of this objective is possible only if the labour issues are analyzed empirically in the right perspective with minute details. In this respect the other objectives of this study are:

  • 1.

    To focus its attention to the historical development of sugar industry and condition of labourers in pre-independence India and afterwards.

  • 2.

    To make a comprehensive comparative study of condition of sugar mills workers in pre and post-independence period to workers in other industries.

  • 3.

    To study the wage structure and Decent Working Time Index in this industry.

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