Early,monsoon,likely,ensure,bu business, insurance Early monsoon is likely to ensure a bumper sugarcane crop in
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The southern states particularly Tamil Nadu (TN) and Karnataka are also expecting an increase in the sugarcane production in the marketing year beginning October 2013 on the back of good monsoon and enough availability of water in their reservoirs. Farmers too look interested -The very fact that sugarcane prices are better than that of many other commercial crops will make the farmers interested in this tropical crop. As a rough estimate, sugarcane gives double the returns compared to many other crops!However, the excess rainfalls and the prospects of a larger cane area do not excite the sugar industries. Because supplies will be far more than demand, sugar prices are likely to remain down. Domestic sugar industries have to find out new markets for the excess supply to ensure that prices do not dwindle. And they will also keep on asking for government help if the supply exceeds the demand in the coming year.It is to be noted that sugarcane constitutes the primary raw material for a typical sugar factory; going by the estimates sugarcane is used to produce almost 80% of sugar in the country; rest of the sugar is produced using sugar beet. The tropical crop sugarcane is produced in several states, such as Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, etc., of India. Maharashtra and Uttar Pradesh are the top two sugarcane producing states. They are also home to a large number of sugar factories. These factories produce different varieties of sugar such as M31, L 30, and L 31; the different varieties or grades cater to different segments of sugar consumers such as common households and FMCG companies. Many sugar companies set-up their plants within easy reach of sugarcane fields; this helps farmers take their freshly cut crop to the plants because once cut sugarcane begins to lose its sugar content, which causes loss to the sugar factory. As of now, everything looks great for the sugarcane producers and the sugar consumers in the country, which also happens to be the largest consumer of sugar in the world.
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