117 CHAPTER FRAME The present chapter named as ‘Sugar Industry in Andhra Pradesh’ in the context of India is presented for comprehension the status and growth of sugar industry in Andhra Pradesh, A brief of sugar industry in the state of Andhra Pradesh, sugar cane area and production, the performance scenario of sugar factories in the state, the relative position of the state of Andhra Pradesh in the production of sugar cane, the yield, the number of sugar factories, sugar production in India and different relevant dimensions of the industry are covered SECTION-A: STATUS AND GROWTH OF SUGAR INDUSTRY IN ANDHRA PRADESH ANDHRA PRADESH-A PROFILE IN BRIEF Andhra Pradesh is the fourth largest state in the Indian union with an area of 2, 75,281 sq.km. Accounting for 8.4 per cent of the total geographical area of the country. The state is formed on 1 st November, 1956 as the first linguistic state, under the state reorganization Act of 1956. It is situated on the globe in the tropical region between 12 o 14' and 19 o 54' North latitudes and 76 o 46' and 84 o 50' East longitudes and is bordered by Maharashtra, Chhattisgarh and Orissa in the north, the Bay of Bengal in the East, Tamil Nadu to the south and Karnataka to the west 1 . It is one of the largest states in the country both in area and population. The state of Andhra Pradesh is regarded as the ‘granary’ of the south. Geographically the state can be divided into three economic regions. a) Coastal Andhra b) Rayalaseema c) Telangana. The state is predominantly agrarian. Within the agricultural sector, food crops predominate accounting for 73.3 per cent total value of agricultural output of the state. Non-food crops account for 20.96 per cent 2 . The state of Andhra Pradesh can rightly be called ‘Rice bowl” of India with its
Transcript
117
CHAPTER FRAME
The present chapter named as ‘Sugar Industry in Andhra
Pradesh’ in the context of India is presented for comprehension the
status and growth of sugar industry in Andhra Pradesh, A brief of sugar
industry in the state of Andhra Pradesh, sugar cane area and
production, the performance scenario of sugar factories in the state, the
relative position of the state of Andhra Pradesh in the production of
sugar cane, the yield, the number of sugar factories, sugar production in
India and different relevant dimensions of the industry are covered
SECTION-A: STATUS AND GROWTH OF SUGAR INDUSTRY IN ANDHRA PRADESH
ANDHRA PRADESH-A PROFILE IN BRIEF
Andhra Pradesh is the fourth largest state in the Indian union with
an area of 2, 75,281 sq.km. Accounting for 8.4 per cent of the total
geographical area of the country. The state is formed on 1st November,
1956 as the first linguistic state, under the state reorganization Act of
1956. It is situated on the globe in the tropical region between 12o14' and
19o54' North latitudes and 76
o46' and 84
o50' East longitudes and is
bordered by Maharashtra, Chhattisgarh and Orissa in the north, the Bay
of Bengal in the East, Tamil Nadu to the south and Karnataka to the
west1. It is one of the largest states in the country both in area and
population. The state of Andhra Pradesh is regarded as the ‘granary’ of
the south. Geographically the state can be divided into three economic
regions. a) Coastal Andhra b) Rayalaseema c) Telangana. The state is
predominantly agrarian. Within the agricultural sector, food crops
predominate accounting for 73.3 per cent total value of agricultural
output of the state. Non-food crops account for 20.96 per cent2. The state
of Andhra Pradesh can rightly be called ‘Rice bowl” of India with its
118
resources, fertile fields and abundant cash crops. The Godavari and
Krishna are the major rivers in the state. The Krishna and west Godavari
districts lie to the east of the Krishna River and west of the river
Godavari and are very fertile with rich irrigation facilities created by sir
Arthur cotton.
Andhra Pradesh, the fifth largest state by population in the
country, ranks seventh in respect of the number of factories and sixth in
regard to the number of persons employed3. The state’s contribution in
the matter of production of number of industrial products is quite
significant. Andhra Pradesh has monopoly in the production of ‘Barytes’.
Large occurrences of bauxite, high of graphite, china clay, copper, and
manganese and low grade iron-ore deposits have been reported.
The state is well poised for a takeoff on the industrial front. The
state of Andhra Pradesh, with agriculture as the back bone of its
economy, has in recent years been paying more and more attention to
industrialization. The main thrust in this effort has been on the
development of industries in the back ward and rural masses,
particularly agricultural labour, which are largely unemployed, in a
major part of the year. It has been decided by the government to
establish as many small scale industrial units as possible in rural areas
and backward districts and to lay emphasis on agro-based industries4.
Industries and agriculture are twin engines of economic development of
any country or state. They are two wheels to the chariot5. Agriculture
provides the raw materials for industries like sugar, cloth, jute while
industries produce machines and equipment to factories producing the
requirements of the farmer like fertilizers, pesticides and tilling
equipment as well as consumption goods. They are interdependent. The
economic growth and development pace of the state in the recent decade
have been rather uneven. On the industrial front, there has been
119
consistent progress with the production of coal, sugar, fertilizers, drugs
and pharmaceuticals, cement, machine tools and engineering goods
showing upwards trends6.
SUGAR INDUSTRY IN ANDHRA PRADESH
Andhra Pradesh (AP) abounds in the number of private sector
sugar companies in India along with Tamil Nadu and Karnataka. In the
year 1933-34, vacuum process is adopted for sugar manufacturing in the
state. Previously, the state government is planning to support cooperative
sector as against other sectors. However, with passing time, a
considerable change in the policy was noticed. Letters of Intent (L.O.I.)
were given to the deserving entrepreneurs including 20 LOIs to the
private sector companies. This gradually resulted in major benefits for
the state government as well as for India as a whole. Today, the state of
Andhra Pradesh sugar industry ranks 3rd in terms of recovery and 5th in
terms of cane crushing. As per production capacity is concerned, Andhra
Pradesh stands at the position 5th in India.
The agricultural laborers who do sugarcane harvesting and
cultivation are employed in the sugar industry in the state of Andhra
Pradesh. Today, the unprecedented growth of this industry in the state
has led to the consolidation of village resources and has facilitated
communication, employment and transport system here.
The state of Andhra Pradesh sugar industry can be classified into
two parts such as organized sector including sugar mills and
unorganized sector including manufacturers of gur (jaggery) and
khandsari. The unorganized sector is often referred to as the rural
industry. The rural industry plays major role in the level of production.
120
Under the Industries and Commerce Department, Govt. of Andhra
pradesh the Directorate of Sugar and Commissionerate of Cane has been
vested with the power to guide and deal with the sugar factories in
Andhra Pradesh. It is the responsibility of the department to encourage
sugarcane farmers and to help this developing industry contribute
effectively towards Gross State Domestic Product (GSDP). The
department also takes care of the technological advancements of the
industry.
SUGAR ECONOMY OF THE STATE
Sugarcane, which is one of the important commercial crops in the
state of Andhra Pradesh, is the basic raw material for sugar industry.
Sugar industry is one of the major agro-based industries in the state,
and mainly located in rural areas making possible the socio-economic
progress by providing substantial direct and indirect employment in the
state. As per the provisions of the state of Andhra Pradesh sugarcane
Act. 1969, the crushing seasons in the state starts in the month of
November and lasts up to 30th April of the next year.
During 2009-10, in the state of Andhra Pradesh, there are 35
sugar factories of which 8 are under the cooperative sector, 24 are under
the private sector.3 are in joint sector. There are only 28 sugar factories
in Andhra Pradesh during 1983-84 and during 2009-10, they stood at 34
in number. Andhra Pradesh occupies fifth place in respect of sugar
growing. This is one of the largest growers of sugarcane in the country.
Sugar cane is cultivated in the districts of Srikakulam, Visakhapatnam,
East Godavari, West Godavari, Krishna, Nizamabad, Kadapa, Chittor and
Guntur. The mill at Bodhan in Nizamabad district of Andhra Pradesh is
biggest in Asia. Three more units used are set up under the same
management. These three units used to pay more remunerative price to
121
cane grower when compared to others. Because of the remunerative
price, farmers had resorted to bringing more land under cultivation and
this was 2, 40,000 acres against its previous year of 3,79,000 acres in
the country as a whole of the total land under sugar cane, one-fifth
belongs to the state of Andhra Pradesh and this occupies ninth place in
the country.
TABLE-4.1: DEMOGRAPHIC PROFILE OF A.P Vs INDIA – A GLANCE 2010
SI.NO Particulars Indian total A.P. State total
1 Geographical Area :sq.Km 32,87,063 2,75,068 2 Distance a) North to South:Km 3,214 825 b) East to West:Km 2,988 3 Land frontier :Km 15,200 4 Coast line :Km 7,516 974 5 Forest Area :Sq.Km 6,33,400 47,112 6 Population (2001 census) a)Males: (millions ) 531.2 38.31 b)Females (millions) 495.8 37.41 Total (millions) 1027.0 75.72 7 Population growth rate (%) 21.34 13.86 8 Density: Population/sq.km 324 275 9 Literacy Rate : a)Males (per cent) 75.85 70.85 b)Females (per cent) 54.16 51.17 c)Total (per cent) 65.38 61.11
10 Sex ratio: Number of Female per 1000 Males
933 978
11 Per Capita Income : Rupees ( as per present prices)
SECTOR TOTAL 4418499(79.6) 4135426(80.44) 9.36 GRAND TOTAL 5549284(100.0) 5140758(100.0) 9.26
Note: figures indicate percentages to total.
Source: Government of Andhra Pradesh. ‘Review on the Performance of sugar Factories in Andhra Pradesh, 2009-10 session’, Commissioner and Director of sugar and Cane Commissioner, Hyderabad.
NUMBER OF SUGAR FACTORIES WORKING
Table-4.2 presents performance of sugar factories during
2009-10, in the state of Andhra Pradesh, there are 35 sugar factories
working in year. Out of the total 35 sugar units 24 units have been in the
private sector, it have dominant share in all the areas, crushing 79.6 per
cent (4418499 MTs), production is 80.44 per cent (4135426 QTls), sugar
recovery stood at 9.36 per cent. Against the grand total of the state cane
crushed 5549284 MTs, production accounts 5140758 QTls, sugar
recovery at 9.26 per cent. In all sectors sugar factories the Jeypore
Sugars Ltd., possess the highest share of cane crushed at 10.69 per cent,
sugar produced is 12.00 per cent, and recovery accounts 10.40 per cent.
Secondly the KCP Sugars and Industrial Corporation Ltd., Vuyyuru,
because two sugar factories from cooperative sector joined the private
sector after being privatized.
124
The capacity utilization of cane crushed by the sugar units
stands at 79.6 per cent where private sectors, 3.60 per cent of joint
venture, cooperative sector recorded as 16.77 per cent. Capacity of
Sugar produced stood at 80.44 per cent of private sector, 3.52 per cent of
the joint venture sector units. 16.03 per cent of cooperative sector. In
the case of recovery private sector unit’s accounts at 9.36 per cent, joint
venture sugar units are 9.06 per cent, and co-operative sugar units.
TABLE-4.3: SUGARCANE AREA AND PRODUCTION-INDIA Vs. AP DURING 2000-01 TO 2009-10
Note: Southern States in Andhra Pradesh, Karnataka, Kerala, Tamilnadu.
Source: Cooperative sugar, December, 2010, Vol.42, No.4, National Federation of Cooperative Sugar Factories Ltd., New Delhi.
AREA UNDER SUGARCANE-POSITION OF ANDHRA PRADESH
Table-4.4 presents the relative position of the state of Andhra
Pradesh with respect to the area under sugarcane cultivation compared
to all India and also the southern states of the country. It is clear from
the table that during 2000-01 to 2009-10, the total area under
sugarcane cultivation in India marginally decreased by -0.26 per cent
where as it experienced a decline by -1.72 per cent in southern states
and -3.12 per cent in the state of Andhra Pradesh. Coming to the relative
share of Andhra Pradesh in the total area under sugarcane in the
southern states, it was 22.7 per cent during 2000-01 but stood at 19.75
per cent during 2009-10. Over the period under review, the share of the
127
state in the total of the southern states ranged between 19.75 per cent
(2009-10) and 33.7 per cent (2005-06). As against the total area under
sugarcane cultivation in the country, the share of the state ranges from
3.76 per cent to 5.7 per cent. The analysis shows that, over the years
under review, the state of Andhra Pradesh has consolidated its share in
the total area under sugarcane among the southern states and almost a
consistent decline in position is observed with respect to its share in the
southern states as well as India
PRODUCTION OF SUGARCANE-POSITION OF THE STATE
The relative position of the state with respect to the production of
sugarcane during the period 2000-01 to 2009-10 presented in table 4.5.
It can be seen from the table that the production of sugar cane
experienced a decline over the years under review. The rate of decline in
the state is -4.0 per cent as against -2.5 per cent in the southern India
states and -0.6 per cent in all India. This shows that though the total
production of sugarcane dwindled down in the state, the rate of decline is
relatively less. During the period under review, the share of the state in
the total production of sugarcane of southern states, considerably
improved from 18.8 per cent (2000-01) to 26.19 per cent (2009-10). In
the total production of country. The state accounted for a share ranging
from 4.2 per cent (2009-10) to 6.6 per cent (2004-05). Here also
consistency can be observed over the year under review
128
TABLE-4.6: YIELD OF SUGARCANE-RELATIVE POSITION OF ANDHRA PRADESH DURING 2000-01 TO 2009-10
(Tonnes per hector)
Year Andhra Pradesh
Average of Total
southern States
All India average
2000-01 81.4 92.7 68.6
2001-02 82.9 86.9 67.4
2002-03 66.2 81.45 63.6
2003-04 72.1 78.22 59.4
2004-05 74.9 87.55 64.8
2005-06 76.8 99.92 66.9
2006-07 82.2 90.8 69.0
2007-08 82.2 96.1 68.9
2008-09 78.0 91.05 61.7
2009-10 74.1 81.65 66.1
CARG (%) 77.13 89.18 65.92
Note: Southern states in Andhra Pradesh, Karnataka, Kerala, Tamilnadu. Source: Cooperative Sugar, December, 2010, Vol.42, No.4, National Federation of Cooperative Sugar Factories Ltd., New Delhi.
YIELD OF SUGARCANE
The per hectare yield of sugarcane in the state as against south
India and all India is presented in table-4.6. The all India position, as
can be seen from the table, reveals that the yield of sugarcane ranged
between 59.4 tonnes (2003-04) and 69.0 tonnes (2006-07). This shows a
dwindling trend where the least is recorded during 2003-04. But the
southern states average yield of sugarcane during the same period
ranged from 78.22 tonnes (2003-04) to 99.92 tonnes (2005-06). This
shows that the yield of sugarcane is higher in the southern states
129
compared to all India average. A look at the state of Andhra Pradesh
reveals that the yield per hectare ranged between 66.2 tonnes to 82.9
tonnes. Through the average yield in the state registered less than that of
the southern states average and it is recorded higher than the all India
average during all the under review.
TABLE-4.7: DURATION OF CRUSHING SEASON-RELATIVE POSITION OF ANDHRA PRADESH FROM 2000-01 TO 2009-10
(Figures in days)
Year Andhra Pradesh
Average of Total southern
States
All India
2000-01 114 141 139
2001-02 119 131 140
2002-03 130 122 141
2003-04 106 109 100
2004-05 97 113 96
2005-06 124 170 126
2006-07 173 209 174
2007-08 127 173 149
2008-09 72 111 87
2009-10 63 112 108
Average crushing season
112 139 126.0
Source: Cooperative sugar, December, 2010, Vol.42, No.4, National Federation of Cooperative Sugar Factories Ltd., New Delhi.
DURATION OF CRUSHING SEASON
During 2000-2001 to 2009-10, the duration crushing season of
sugar factories in the state of Andhra Pradesh as against the average of
those in southern states and India as a whole, is presented in table-4.7.
130
It is an average 139 days in southern states against 126 days all India
average, but it is only 112 days in Andhra Pradesh. Further, a relatively
short duration can be noted in the states during majority of the years
under review. The chief reason for this phenomenon is the shortage of
sugarcane to feed the crushing capacity of the factories.
TABLE-4.8: NUMBER OF SUGAR FACTORIES-RELATIVE POSITION OF ANDHRA PRADESH DURING 2000-01 TO 2009-10
Note: Southern States in Andhra Pradesh, Karnataka, Kerala, Tamilnadu. Source: Cooperative Sugar, December, 2010, Vol.42, No.4, National Federation of Cooperative Sugar Factories Ltd., New Delhi
131
TABLE-4.9: SUGAR PRODUCTION BY SUGAR FACTORIES-RELATIVE POSITION OF ANDHRA PRADESH DURING 2000-01 TO 2009-10
(In 000 tonnes)
Year Andhra Pradesh
Total southern
states
All India
AP % to southern
states
AP % to all India
2000-01 1022 4453 18519 22.9 5.5
2001-02 1048 4481 18527 23.3 5.6
2002-03 1210 4758 20140 25.4 6.0
2003-04 886 2943 13546 30.1 6.5
2004-05 982 3130 12691 31.3 7.7
2005-06 1236 5321 19267 23.2 6.4
2006-07 1680 6880 28361 24.4 5.9
2007-08 1335 6376 26356 20.9 5.0
2008-09 593 3845 14538 15.4 4.0
2009-10 515 4372 18912 23.11 2.7
CARG (%)
-6.62 -0.18 0.21
Note: Southern States in Andhra Pradesh, Karnataka, Kerala, Tamilnadu. Source: Cooperative Sugar, December, 2010, Vol.42, No.4, National Federation of Cooperative Sugar Factories Ltd., New Delhi.
132
TABLE-4.10: CANE CRUSHED BY SUGAR FACTORIES- RELATIVE POSITION OF ANDHRA PRADESH DURING 2000-01 TO 2009-10
(Figures In 000 tonnes)
Year Andhra Pradesh
Total southern
states
All India AP % to southern
states
AP % to all India
2000-01 9867 43430 176742 22.7 5.5
2001-02 10467 44119 180321 23.7 5.8
2002-03 11980 45945 194324 26.0 6.1
2003-04 8597 29022 132511 29.6 6.4
2004-05 9217 30992 124771 29.7 7.3
2005-06 12303 53441 188672 23.0 6.5
2006-07 17323 69926 279249 24.7 6.2
2007-08 13201 62856 249906 21.0 5.2
2008-09 5993 35703 144978 16.7 4.1
2009-10 5546 44076 185548 12.58 2.9
CARG (%)
-5.5 0.14 0.48
Note: Southern States in Andhra Pradesh, Karnataka, Kerala, Tamilnadu. Source: Cooperative Sugar, December, 2010, Vol.42, No.4, National Federation of Cooperative Sugar Factories Ltd., New Delhi.
133
TABLE-4.11: RECOVERY RATE OF SUGAR-RELATIVE POSITION OF ANDHRA PRADESH DURING 2000-01 TO 2009-10
(In %)
Year Andhra Pradesh
Average of Total southern States
All India
2000-01 10.36 9.4 10.48
2001-02 10.01 9.4 10.27
2002-03 10.10 9.4 10.36
2003-04 10.32 8.0 10.22
2004-05 10.65 10.13. 10.17
2005-06 10.05 10.04 10.22
2006-07 9.71 9.85 10.17
2007-08 10.12 10.11 10.55
2008-09 9.89 9.93 10.03
2009-10 9.28 9.71 10.20
CARG% -1.09 0.32 -0.27 Note: Southern States in Andhra Pradesh, Karnataka, Kerala, Tamilnadu. Source: Cooperative Sugar, December, 2010, Vol.42, No.4, National Federation of Cooperative Sugar Factories Ltd., New Delhi.
SHARE OF THE STATE IN THE NUMBER OF SUGAR FACTORIES
Table-4.8 presents the relative position of the state with respect
to the number of sugar factories during 2000-01 to 2009-10. As evident
from the table, the number of sugar factories in India and also in the
states recorded a growth rate of 1.17 per cent and 1.68 per cent
respectively. But in the state of Andhra Pradesh declining and increasing
trend of fluctuations is observed during the period at rate of zero per
cent.
But the relative position of the state reveals that the state
accounts for 26.1 per cent (2003-04) to 33.3 per cent (2005-06) of the
134
total factories in the southern states. The states share, in the number of
sugar factories in India, ranged between 7.1 per cent (2009-10) to 8.5 per
cent (2004-05). It is also revealed that, over the years under review, there
observed a decline in the relative share of the state and recorded the
decline in the lowest during 2009-10. The reasons being the closer of
some factories due to the decline in the area under sugarcane
cultivation and consequent non-availability of raw material, availability of
the factories, and incapacity for diversification into the areas of by-
products, etc.
[[THE PRODUCTION OF SUGAR-RELATIVE SHARE OF A.P
Table-4.9 presents the relative position of the state with respect to
the production of sugar factories during 200-01 to 2009-10. It can be
seen from the table that the production of sugar in the state which was
1022 thousand tonnes during 2000-01 experienced an increase to 1,680
thousand tonnes (2006-07) and stood at 515 thousand tonnes during
2009-10. It is observed that the volume of production experienced a
decline in the state of Andhra Pradesh and country as whole but in case
of southern states marginally increasing.
A further analysis shows that the share of the state in the total
sugar production of the southern states ranged between 15.4 per cent
(2008-09) and 25.4 per cent (2002-03) with respect to all India sugar
production the states share ranged between 2.7 per cent (2009-10) to 7.7
per cent (2004-05). It can also be observed that the share of the state in
all India production of sugar is more or less constant.
COMPARATIVE POSITION OF CANE CRUSHED IN ANDHRA PRADESH
The position of the state of Andhra Pradesh with respect to the
cane crushed by sugar factories compared to the south India and all
India is presented in table-4.10. As evident from the table, the total cane
135
crushed in the state was 9867 thousand tonnes during 2000-01 which
constitute 22.7 per cent of the total south India and 5.5 per cent of all
India. During 2009-10, a total of 5546 thousand tonnes of cane were
crushed in the state. This constitutes 12.58 per cent of the total
southern states and 2.9 per cent of all India. Actually, the total cane
crushed by sugar factories experienced a downward trend over the years
under reference. The rate of decline is recorded at 0.14 per cent and 0.48
per cent respectively in south India and all India. But it is at -5.5 per
cent with regard to the state of Andhra Pradesh. This shows that though
the total cane crushed in the state experienced a decline, the rate of
decline is comparatively less.
It can be observed from the table that during the period under
reference, the share of the state in the total cane crushed in India ranged
between 2.9 per cent (2009-10) to 7.3 per cent (2004-05). Moreover, in
the total sugarcane crushed in south India, the share of the state ranged
between 12.58 per cent (2009-10) to 29.7 per cent (2004-05). The
analysis helps to observe that the state of Andhra Pradesh accounts for
considerably larger share of the cane crushed by sugar factories.
SUGAR RECOVERY RATE
The recovery rate of sugar in the state of Andhra Pradesh as
against the average of the southern states and all India is presented in
table-4.11. As evident from the table, the average sugar recovery rate in
India, during 2000-01 to 2009-10 ranged between 10.03 per cent and
10.55 per cent in the case of southern states, it is between 8.0 per cent
and 10.13 per cent. The recovery rate of sugar factories in Andhra
Pradesh during the same period ranged between 9.28 per cent and 10.65
per cent. The comparative view of the recovery rates reveals that the state
of Andhra Pradesh registered relatively an impressive recovery rate
especially when compared to the average of the southern states.
136
TABLE-4.12: STATE-WISE CANE CRUSHED BY CENTRIFUGAL SUGAR FACTORIES IN SOUTHERN STATES DURING 1994-95 TO 2009-10
(Figures in thousand tonnes)
S.NO
STATES 1994-95
1999-00
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2009-10 Rank
CARG
1 2 3 4 5
Andhra Pradesh
Kerala
Karnataka
Pondicherry
Tamilnadu
9290 (21.3)
132 (0.3)
11893 (27.3)
710 (1.6)
21415 (49.2)
11717 (25.4)
159 (0.3)
14815 (32.1)
626 (1.3)
18693 (40.6)
9217 (29.5)
-
10283 (32.9)
185 (0.5)
11492 (36.8)
12303 (22.8)
-
17953 (33.3)
371 (0.6)
23185 (43.0)
17323 (24.5)
-
25151 (35.6)
715 (1.0)
27452 (38.8)
13201 (20.8)
-
26685 (42.0)
576 (0.9)
22970 (36.2)
5993 (15.4)
-
16104 (41.4)
166 (0.4)
16606 (42.7)
5546 (16.2)
-
23977 (70.3)
225 (0.6)
4328 (12.7)
2 - 1 4 3
-3.17
-
4.47
-6.93
-9.51
Total
43,440 (100.0)
46,010 (100.0)
31,177 (100.0)
53812 (100.0)
70641 (100.0)
63432 (100.0)
38869 (100.0)
34076 (100.0)
-1.5
Note: Figures in Brackets Indicates Percentage to Total.
Source :Indian sugar ,December,2010,Vol.No.LX,No Nine ,the Indian Sugar Mills Association, New Delhi .
137
TABLE-4.13: STATE-WISE SUGAR PRODUCTION DIRECTLY FROM CANE IN SOUTHERN STATES DURING 2000-01 TO 2009-10
(Thousand tonnes)
S. NO STATES
2000-
01 2001-
02 2002-
03 2003-
04 2004-
05 2005-
06 2006-
07 2007-
08 2008-
09 2009-
10 2009-
10 Rank
CARG
1 2 3 4 5
Andhra Pradesh
Kerala
Karnataka
Pondicherry
Tamilnadu
1022 (22.9)
7
(0.15)
1613 (36.15)
38
(0.85)
1781 (40.0)
1048 (22.3)
5
(0.1)
1550 (34.5)
39
(0.8)
1839 (41.0)
1210 (25.4)
7
(0.14)
1868 (39.2)
34
(0.7)
1644 (34.5)
886 (30.0)
-
1116 (37.9)
20
(0.6)
921 (31.2)
982 (31.1)
-
1040 (33.0)
18
(0.5)
1108 (35.1)
1236 (23.1)
-
1943 (36.3)
28
(0.5)
2142 (40.0)
1680 (24.2)
-
2660 (38.3)
59
(0.8)
2540 (36.6)
1335 (20.7)
-
2900 (45.1)
50
(0.7)
2540 (33.3)
593 (15.3)
-
1654 (42.8)
16
(0.4)
1598 (41.3)
515 (11.7)
-
2558 (58.5)
19
(0.4)
1280 (29.7)
3 - 1 4 2
-6.62 -
4.71
-6.69
-3.24
Total 4461 (100.0)
4481 (100.0)
4763 (100.0)
2943 (100.0)
3148 (100.0)
5349 (100.0)
6939 (100.0)
6426 (100.0)
3861 (100.0)
4372 (100.0)
-0.20
Note: Figures in Brackets Indicates Percentage to Total.
Source :Indian sugar ,December,2010,Vol.No.LX,No Nine ,the Indian Sugar Mills Association, New Delhi .
138
CANE CRUSHED BY THE CENTRIFUGAL FACTORIES
The sugarcane crushed by the centrifugal sugar factories in the
state of Andhra Pradesh, relating to the southern states, for the period
between 1994-95 to 2009-10 is presented in table-4.12. It can be seen
from the table that the cane crushed in the state which is 9290 thousand
tonnes during 1994-95 stood at 16.2 thousand tonnes during 2009-10.
During the review period, the cane crushed ranged from 15.4 per cent
(2008-09) to 29.5 per cent (2004-05). Under study period cane crushing
is declining with annual growth rate of -3.17 per cent.
A further analysis of the data reveals that among the southern
states, the state of Karnataka is leading, with respect to cane crushing,
with its share around 70 per cent. The state of Andhra Pradesh and
Tamilnadu follow with second and third places respectively. Sothern
states is observed to account between 31,177 thousand tonnes and
70,641 thousand tonnes of the sugarcane crushed capacity. Moreover, in
the total Sothern states growth rate is reduced to-1.5 per cent.
SUGAR PRODUCTION IN SOUTHERN STATES
Table-4.13, presents the relative position of the state with respect
to production of sugar by sugar factories in southern states during 2000-
01 to 2009-10. It can be seen from the table that the production of sugar
in the state which is 1022 thousand tonnes during 2000-01 experienced
an increase to 1680 thousand tonnes during 2006-07 and stood at 515
thousand tonnes during 2009-10. It is observed that the production of
state ranged between 11.7 per cent during 2009-10 to 30.0 per cent
during 2003-04. As evident from the table the volume of production
experienced a decline in the total southern states as well as in the state
of Andhra Pradesh. The decline in the growth rate of sugar production in
139
Andhra Pradesh is -6.62 per cent and total southern states are -0.20 per
cent.
A further analysis shows that among all the southern states
Karnataka stands in the first place with a share of 58.5 per cent and
annual growth rate of 4.71 per cent, second and third places are
assumed by Tamilnadu and Andhra Pradesh respectively regarding
production during 2009-10.
140
TABLE-4.14: STATE-WISE NUMBER OF CENTRIFUGAL FACTORIES OPERATION IN SOUTHERN STATES DURING 2000-01 TO 2009-10
Note: Figures in Brackets Indicates Percentage to Total. Source :Indian sugar ,December,2010,Vol.No.LX,No Nine ,the Indian Sugar Mills Association, New Delhi .
141
TABL-4.15: STATE-WISE TOTAL NUMBER OF LICENSED & INSTALLED SUGAR FACTORIES IN SOUTHERN STATES POSITION DURING 2009-10
(Figures in no’s)
S.NO States Total number of existing licensed sugar factories
Total number of installed sugar factories
Rate of installation
Public
Pvt Co-op Total Public
Pvt Co-op Total
1 2 3 4 5
Andhra Pradesh
Kerala
Karnataka
Pondicherry
Tamilnadu
1 0 3 0 3
28 1
44 1
26
14 1
15 1
16
43 2
64 2
45
1 (100)
- 3
(100) - 3
(100)
27 (96.4)
1
(100)
37 (84.0)
1
(100)
26 (100)
15 (107.1)
1
(100)
24 (160)
1
(100)
16 (100)
43 (27.56)
2
(1.28)
64 (41.02)
2
(1.28)
45 (28.84)
100
100
100
100
100
Total
7 100 47 156 7(100) (4.48)
92(92.0) (58.97)
57(121.2) (36.53)
156 (100.0)
100
Note: 1 this excludes the factories which had a remained closed for the last five years. 2. Figures in the brackets indicates installation rate (installed/licensed *100). 3. Figures in lower brackets indicate percentages to southern states total. Source: Hand Book of Sugar statistics, October, 2010, Indian Sugar Mills Association, New Delhi.
142
FACTORIES IN OPERATION IN SOUTHERN STATES
Table-4.14, presents the relative position of the state with respect
to the number of sugar factories in southern states during 2000-01 to
2009-10. As evident from the table, the number of sugar factories in
southern states and also in the state of Andhra Pradesh recorded growth
rate of 1.76 per cent and consistentently maintain zero per cent
respectively. But in the case of Pondicherry a decline trend is observed
during the period at rate -6.69 per cent.
But the relative position of the state reveals that the state accounts
for 31.8 per cent (2000-01) to 26.7 per cent (2009-10) of the total
factories in the southern states. The state share, in the number of
factories in southern states, ranged between 26.7 per cent during 2009-
10 to 33.0 per cent during 2005-06. It reveals that, over the years under
review, the Karnataka (41.2 per cent) and Tamilnadu (31.2 per cent)
stands first and second place. The state of Andhra Pradesh stands third
place (26.7 per cent) against operations of sugar factories in southern
states.
POSITION OF LICENSED AND INSTALLED SUGAR FACTORIES IN SOUTHERN STATES
The licensed and installed sugar factories (public, private, co-
operative sector) state of Andhra Pradesh, relating to the southern states,
for the period between 2009-10 is presented in table-4.15. It can be seen
from the table, that the total number of existing licensed sugar factories
in southern states are 156. In this public, private and co-operative
sectors are 4.48 per cent (7), 58.97 per cent (100) and 36.53 per cent (47)
respectively. Further analysis of table shows top share of existing
licensed sugar factories are in Karnataka 64 ( 41.02 per cent) with first
143
place, second and third positions are Tamilnadu 45 (28.84) per cent and
state of Andhra Pradesh (43) 27.56 per cent.
As evident from the table, state of Andhra Pradesh installed 100
per cent of public sector, 96.4 per cent of private sector, and 107.1 per
cent of co-operative sector sugar factories are installed. This analysis
shows that the ratios of installed sugar factories in all the total southern
states are in public sector (100 per cent), private sector are (92.0 per
cent) and (121.2 per cent) in co-operative sector. But rate of installation
of sugar factories in all southern states are 100 Per cent.
144
TABLE-4.16: STATE-WISE PRODUCTION OF SUGAR CANE IN SOUTHERN STATES DURING 2000-01 TO 2009-10
(Thousand tonnes)
S.NO STATES
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2009-10
Rank
CARG
1
2
3
4
5
Andhra Pradesh
Kerala
Karnataka
Pondicherry
Tamilnadu
17690 (18.7)
276 (0.2)
42923 (45.5)
200 (0.2)
33188 (35.2)
18082 (21.4)
270 (0.3)
33017 (39.2)
197 (0.2)
32620 (38.7)
15387 (21.2)
313 (0.4)
32485 (44.7)
210 (0.2)
24165 (33.3)
15070 (30.6)
291 (0.5)
16015 (32.5)
148 (0.3)
17656 (35.9)
15739 (29.2)
283 (0.5)
14276 (26.5)
127 (0.2)
23396 (43.4)
17656 (24.4)
917 (1.2)
18262 (25.3)
157 (0.2)
35107 (48.6)
21692 (23.5)
440 (0.4)
28670 (31.1)
160 (0.1)
41124 (44.6)
20296 (23.8)
218 (0.2)
26240 (30.8)
160 (0.1)
38071 (44.7)
15322 (36.3)
256 (0.6)
23157 (54.9)
160 (0.3)
32220 (76.5)
11707 (16.0)
117 (0.1)
29112 (40.0)
-
31807 (43.7)
3
4
2
1
-4.04
-8.22
-3.80
-2.44
-0.42
Total 94277 (100.0)
84186 (100.0)
72560 (100.0)
49180 (100.0
53821 (100.0)
72099 (100.0)
92086 (100.0)
84985 (100.0)
42117 (100.0)
72743 (100.0)
-2.55
Note: Figures in Brackets Indicates Percentage to Total. Source :Indian sugar ,December,2010,Vol.No.LX,No Nine ,the Indian Sugar Mills Association, New Delhi .
145
TABLE-4.17: STATE-WISE SUGAR PRODUCTION AND RECOVERY IN SOUTHERN STATES 2009-10
S.NO States
Production (thousand
tonnes)
Production Rank
Recovery Recovery Rank
1 2 3 4 5
Andhra Pradesh
Kerala
Karnataka
Pondicherry
Tamilnadu
515(11.7) -
2558(58.5)
19(0.4)
1280(29.2)
3 - 1 4 2
9.28 -
10.67
8.30
8.97
2 - 1 4 3
Total
4372(100) 9.30
Note: Figures in the parenthesis indicates percentage to total.
Source: Hand Book of Sugar statistics, October, 2010, Indian Sugar Mills Association, New Delhi.
146
TABLE-4.18: SECTOR-WISE DISTRIBUTION OF EXISTING SUGAR MILLS IN SOUTHERN STATES 2009-10
(Figures in no’s)
S.NO State
Joint stock sector
Public sector Co-op sector Total Relative position
(percentage) 1 2 3 4 5
Andhra Pradesh
Kerala
Karnataka
Pondicherry
Tamilnadu
28(65.1)
1(50)
44(68.7)
1(50)
26(57.7)
1(2.3) -
3(4.6) -
3(6.6)
14(32.5)
1(50)
15(23.4)
1(50)
16(35.5)
43(100)
2(100)
62(100)
2(100)
45(100)
27.9
1.2
40.2
1.2
29.2
Total
100(64.9) 7(4.5) 47(30.5) 154(100) 100.00
Note: Figures in the parenthesis indicates percentage to total. Source: Hand Book of Sugar statistics, October, 2010, Indian Sugar Mills Association, New Delhi.
147
PRODUCTION OF SUGARCANE IN SOUTHERN STATES
Table-4.16 presents the relative position of the state with respect
to production of sugar by sugar factories against southern states during
2000-01 to 2009-10. It can be seen from the table that the production of
sugar in the state which is 17690 thousand tonnes (18.7 per cent) during
2000-01, experienced an increase to 21692 thousand tonnes (23.5 per
cent) and stood at 11707 thousand tonnes (16.0 per cent) during 2009-
10. It is observed that the volume of production experienced a decline in
the state of Andhra Pradesh as well as southern states.
A further analysis shows that the share of the state in the total
sugar production of the southern states ranged between 16.0 per cent
during 2009-10 to 30.6 per cent during 2003-04, with respect to
southern states sugar production ranged between 42117 thousand
tonnes during 2008-09 to 94277 thousand tonnes during 2000-01. The
rate of decline is recorded at -2.55 per cent and -4.04 per cent
respectively in southern states and Andhra Pradesh.
PRODUCTION AND RECOVERY IN SOUTHERN STATES
The recovery rate of sugar in the state of Andhra Pradesh as
against the average of the southern states during 2009-10, is presented
in table-4.17. As evident from the table, the average sugar recovery rate
and production in southern states, during 2009-10 stood at 9.30 per
cent and 4372 thousand tones. In this analysis also shows that
regarding recovery Karnataka is the first place with 10.67 per cent and
Andhra Pradesh and Tamilnadu is second and third places respectively.
In area of total production southern states, first position is Karnataka
with 58.5 per cent, second and third positions are Tamilnadu with 29.2
per cent and 11.7 per cent respectively. The comparative view of the
148
recovery rates reveals that the state of Andhra Pradesh registered
relatively consistent recovery rate especially when compared to that of
the average of the southern states.
EXISTING SUGAR MILLS IN SOUTHERN STATES
The distribution of exiting sugar mills (joint stock sector, public
sector, and co-operative sector) in the state of Andhra Pradesh, relating
to the southern states for the period between 2009-10 is presented in
table-4.18. It can be seen from the table that the existing number of
sugar mills in the state which is 43 with relative position of 27.9 per
cent, out of 154 existing sugar mills in southern states. in particularly
the state of Andhra Pradesh joint sector sugar mills are 65.1 per cent,
public sector sugar mills are 2.3 per cent, co-operative sector sugar mills
are 32.5 per cent, against total southern states of existing sugar mills in
joint sector is 64.9 per cent, public sector stood at 4.5 per cent, co-
operative sector account 4.5 per cent respectively.
As evident from the table that out of the total existing sugar mills
in southern states relative positions Karnataka is the first position share
of 40.2 per cent, second and third are positions are Tamilnadu and
Andhra Pradesh with the share of 29.2 per cent and 27.9 per cent
respectively.
149
TABLE-4.19: CANE CRUSHED BY SELECT SUGAR FACTORIES DURING LAST TEN YEARS DURING
Note: figures in upper brackets indicate percentage to private sector total and those in lower brackets to state grand total Source: Review on the performance of sugar factories in Andhra Pradesh, 2009-10 season, commissioner & director of sugar &cane commissioner, A.P., Hyderabad.
150
POSITION OF PRIVATE SECTOR AND THE RELATIVE STATUS OF SELECT PRIVATE SECTOR SUGAR UNITS
An assessment of the position of private sector sugar industry in
the state of Andhra Pradesh and the relative status of the selected sugar
units under study is made with respect to the cane crushed, production
of sugar, recovery, in the forthcoming presentation for the period
2000-01 to 2009-10.
POSITION WITH RESPECT TO CANE CRUSHED
Table 4.19 presents the sugarcane crushed in the state of Andhra
Pradesh and in turn by the private sector and the selected sugar units
during the decade under review. As evident from the table, the total cane
crushed in the state fluctuated over the years. It is 9.86 lakh MTs during
2000-01 and increased to 17.32 lakh MTs. (2006-07) but stood at 5.54
lakh MTs during 2009-10. The fluctuations are mainly due to the
changing crop pattern and the oscillating preferences and minimum
support prices offered for sugarcane.
As evident from the table that out of the total sugarcane crushed in
the state, the share of the private sector ranged between 67.57 lakh
(2000-01) to 86.09 per cent (2003-04) . Moreover, it is also evident that
the private sector has consolidated its share of cane crushed in the state
consistently over the years. This analysis shows that private sector is
dominant in the state. Coming to the four selected units under study, it
can be seen from the table that they account for 23.82 per cent (2006-07)
to 40.42 per cent (2000-01) of the total cane crushed by the private
sector sugar mills in the state. The analysis helps to observe that the
private sugar units account for an increasingly dominating share (67.57
per cent to 86.09 per cent) of total sugarcane crushed in the state. In
turn, among the private sector sugar mills, the four units study also
account for greater share of 23.82 per cent to 40.42 per cent of the cane
crushed. This shows the status of private sector sugar industry in the
state of Andhra Pradesh.
151
TABLE-4.20: NET SUGAR PRODUCED BY SELECT SUGAR FACTORIES DURING 2000-01 TO 2009-10 IN ANDHRA PRADESH
Note : Figures in upper brackets indicate percentage to private sector total and those in lower bracket to state grand Total Source: Review on the performance of sugar factories in Andhra Pradesh, 2009-10 season, Commissioner & Director of sugar & cane Commissioner, A.P., Hyderabad.
152
TABLE-4.21: STATEMENT SHOWING THE AVERAGE PERCENTAGE OF SUGAR RECOVERY BY SELECT SUGAR FACTORIES DURING 2000-01 TO 2009-10 CRUSHING SEASONS IN ANDHRA
Source: Review on the performance of sugar factories in Andhra Pradesh, 2009-10 season, Commissioner & Director of sugar & cane commissioner, A.P., Hyderabad.
153
PRODUCTION OF SUGAR
Table-4.20 presents the sugar produced in the state of Andhra
Pradesh and the relative position of the private units and the selected
units under study. As evident from the table, the total sugar production
in the state which is 10.22 lakh QTs during 2000-01 gone up to 16.80
lakh QTs during 2006-07and stood at 5.14 lakh QTs during 2009-
10.Coming to the private sector sugar mills, the total sugar produced,
during 2000-01 to 2009-10 ranged between 4.13 lakh QTs and 14.14
QTs. The share of the private sector mills during the period ranged
between 68.81 per cent and 91.45 per cent. The four units selected for
the study produced 3.9 lakh QTs during 2000-01, which increased to
36.83 lakh QTs (2006-07) and stood at 13.36 lakh QTs during 2009-10.
Their relative share in the total sugar production by the private sector
ranged between 26.04 per cent during 2006-07, 43.97 per cent during
2000-01. The analysis brings out the observation that the private sector
sugar units in general and selected sugar factories in particular account
for a lion’s share of the total sugar produced by the sugar factories in the
state.
SUGAR REOVERY SCENARIO
The scenario of sugar recovery in the state by the private sector
sugar mills and four selected units presented in table-4.21. As can be
visualized from the table, the average rate of sugar recovery by the sugar
factories in the state of Andhra Pradesh ranged between 9.26 per cent
during 2009-10, 10.65 per cent during 2004-05, coming to the private
sector, during the period under reference, the recovery rate is in the
range of 9.36 per cent during 2009-10, 11.00 per cent during 2004-05.
Moreover, it is also clear that during every year under review, over the
decade, the average recovery rate in the private sector sugar mills in the
state recorded above the state average. This shows that the sugar
154
recovery performance of the private sector sugar mills has been at an
impressive edge. Further, a look at the selected units also shows that,
with the exception of Delta sugars (during 2007-08 to 2009-10), the rest
of the units recorded an impressive sugar recovery rate over the year
under reference. It is further observed that the average sugar recovery
rate of the selected units under study also stood the average rate of
private sector mills in the state and the state average.
REFERENCES
1. Andhra Pradesh (http://en.wikipedia.org), 2010. 2. Lakshmana Rao, V. “Economic Growth of Andhra Pradesh”, Chugh Publications, Allahabad,
1988, p. 28. 3. Chaturvedi, R.C., “The Sugar Economy”, Cooperative Sugar, Vol.Xii, No.6, National Federation
of Cooperative Sugar Factories Ltd, Jan-March, 2003. 4. The Ninth Plan (Draft), Planning Commission, Government of the India, New Delhi. 5. Govt. A.P., ‘A Dale News Factures Publication’, Andhra Pradesh Year Books, Hyderabad, 1990,
p. 69. 6. Sundari Sheela, K., Andhra Pradesh on the March, Andhra Pradesh, Vol.Ix, No.4, Department of
Information and Culture, Government of Andhra Pradesh, February, 2004.
![Untitled-1 [] · Nagarjuna Sagar Dam õ3NãgerjunasagaóSite Jammar . ANDHRA AUTHORITY . ANDHRA AUTHORITY . ANDHRA AUTHORITY . ANDHRA AUTHORITY . ANDHRA AUTHORITY . ANDHRA AUTHORITY](https://static.documents.pub/doc/80x56/5fa86894420206628339e79d/untitled-1-nagarjuna-sagar-dam-3ngerjunasagasite-jammar-andhra-authority.jpg)
