Khandsari Sugar Processing Industry

Khandsari Sugar Processing Industry. Khandsari Sugar (Raw Unprocessed Sugar) Factory

Khandsari sugar may be termed as "Cottage Sugar", which is obtained in unrefined crystalline form from small scale sugar industries known as Khandsari units. Khandsari is a type of unrefined raw white sugar made from thickened sugar cane syrup. It is neither bleached nor contains harmful chemicals and additives.

·         It is full of minerals and other nutrients, making it a healthier choice than refined, chemically treated sugar.

·         Using the right kind of sugars and salt for daily use is the basis of a healthy diet.

·         A healthy and nutritious alternative to sugar

India is the birthplace, where the small scale Khandsari (sugar) industry was born and developed into a modern industry. The Khandsari sugar production, which was originally confined to the State of Uttar-Pradesh only, is now spread all over the country. It occupies an important place in the country's sugar economy. Around 45-50% of the total sugar cane produced in the country is absorbed by the Khandsari industry which provides employment to about 2.5 million people.

Market Outlook

With an annual production capacity of over 30 million metric tonne (MMT), the Indian Sugar Industry (ISI) is the second largest producer of sugar in the world. It is also the second largest agro-based industry in the country after cotton. The sugar industry contributes significantly to socio-economic development of the rural population.

Presently sugar is one of the most regulated commodities being subject to quotas, subsidies and import duties in almost every country.

Sugar come in two distinguishable groups; raw sugar and refined sugar. Sugar can be produced from sugar cane or sugar beet. Cane sugar accounts for 80% of all sugar produced in the world, 20% comes from sugar beet. Refined sugar from beets and cane is seen as the same, consequently there is no difference in sugar prices between the two.

Sugar

The state of Uttar Pradesh (UP) is expected to be the largest producer of sugar in India with its highest production estimate in decades, followed by the state of Maharashtra. In MY 2017/18, an estimated 357 MMT of sugarcane will be produced from 5.0 million hectares with sugar recovery estimated at 11.2 percent vis-à-vis 11 percent for MY 2016/17.

Apart from white crystal sugar, sugarcane is used for manufacturing traditional sweeteners like Khandsari sugar and Jaggery that are mostly consumed in rural areas. About 60% of cane is utilized for the production of sugar, about  30%  for  alternate  sweeteners,  namely  gur  and  khandsari  and  the  balance  10%  for  seeds.

Consumption:

Out-year sugar consumption is forecast at 27.5 MMT. A strong demand from bulk buyers, food processors’, quick service restaurants, sweet meat shops, households, a growing population, rising income and changing food consumption patterns should 2 Except for Maharashtra state which received good monsoon rains in the post-2017 monsoon season. Support higher consumption in the out-year. Bulk users account for two-third of total sugar consumption in India. In addition to the above, most khandsari sugar is consumed by local sweet shops and gur is mostly consumed in rural households for food, and feed use as well.

World Sugar Production, Imports, Exports and Consumption

The sugar industry in India has witnessed a growth in recent years on account of rising number of sugar factories in the country as well as the increasing sugarcane yield in the country. The surge in growth of the industry is majorly originated from the rising sugar demand by the consumers as well as the institutional sector and also forms the increasing expenditure on food and beverages.

Indian sugar industry is highly fragmented with organized and unorganized players. The unorganized players mainly produce Gur and Khandari, the less refined forms of sugar. The industry plays a vital role in the economic development of rural areas as they generate large-scale direct employment besides providing indirect employment to rural population. The sugar industry provides livelihood to more than 4 crores sugar cane grower’s factory workers and others.

Sugar industry in India occupies a distinctive position in the economic and social fabric of the economy. It is playing a pivotal role especially in the upliftment of the rural economy.

Future Growth of India sugar market is expected to be led by increasing sugarcane yield, rising demand of sugar by the consumers and increasing sugar recovery rate. The sugar industry in India has witnessed a growth in recent years on account of rising number of sugar factories in the country as well as the increasing sugarcane yield in the country. The surge in growth of the industry is majorly originated from the rising sugar demand by the consumers as well as the institutional sector and also forms the increasing expenditure on food and beverages.

Cost Estimation:

Plant capacity:                                   4.2 Tonnes/Day  

Plant & machinery:                            21 Lakhs

Working capital:                                37 Lakhs

Total Capital Investment (T.C.I):        88 Lakhs

Return of Return (ROR):                   35.25%      

Breakeven Point (BEP):                     61.50%

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