Chapters :

Industry & Infrastructure – 06

Sugar industry

  • Sugar industry is the second largest industry among agriculture-based industries in India after cotton. India is now the largest producer and consumer of sugar in the world.
  • Maharashtra contributes over one third of the Indian total sugar output,
    followed closely by Uttar Pradesh.
  • Sugar industry is an important agro-based industry that impacts rural livelihood of about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills. Employment is also generated in various ancillary activities relating to transport, trade servicing of machinery and supply of agriculture inputs. India is the second largest producer of sugar in the world after Brazil and is also the largest consumer. Today Indian sugar industry’s annual output is worth approximately Rs.80,000 crores.
  • There are 732 installed sugar factories in the country as on 31.07.2017, with sufficient crushing capacity to produce around 339 lakh MT of sugar. The capacity is roughly distributed equally between private sector units and co-operative sector units. The capacity of sugar mills is, by and large, in the range of 2500 TCD-5000 TCD bracket but increasingly expanding and going even beyond 10000 TCD. Two standalone refineries have also been established in the country in the coastal belt of Gujarat and West Bengal which produce refined sugar mainly from imported raw sugar as also from indigenously produced raw sugar.
  • ‘Fair and Remunerative Price (FRP) of sugarcane for 2009-10 and subsequent sugar seasons. The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) after consulting the State Governments and associations of sugar industry. Under the FRP system, the farmers are not required to wait till the end of the season or for any announcement of the profits by sugar mills or the Government. The new system also assures margins on account of profit and risk to farmers, irrespective of the fact whether sugar mills generate profit or not and is not dependent on the performance of any individual sugar mill
  • The year 2013-14 was a water-shed for the sugar industry. The Central Government considered the recommendations of the committee headed by Dr. C. Rangarajan on de-regulation of sugar sector and decided to discontinue the system of levy obligations on mills for sugar produced after September, 2012 and abolished the regulated release mechanism on open market sale of sugar. The de-regulation of the sugar sector was undertaken to improve the financial health of sugar mills, enhance cash flows, reduce inventory costs and also result in timely payments of cane price to sugarcane farmers. The recommendations of the Committee relating to Cane Area Reservation, Minimum Distance Criteria and adoption of the Cane Price Formula have been left to State Governments for adoption and implementation, as considered appropriate by them.
  • Ethanol blended petrol programme (2007)

Cement Industry

  • The first Indian cement Industry was Indian Cement Company Limited in Porbandhar in1914.
  • It is one of important industries
  • India has 209 large cement plants with an installed capacity of 378.3 million tonnes by 2016.
  • Cement industry is considered as an important industry which is a measure of development such as construction, road, urbanization etc.

Fertiliser industry
India is the third largest producer of nitrogenous fertilisers in the world.

Paper industry

  • The first mechanised paper mill was set up in 1812 at Serampur in West Bengal
  • The paper industry in India is ranked among the 15 top global paper industries.

 Silk industry

  • India is the second-largest (first being China) country in the world in producing natural silk. At present, India produces about 16%
    silk of the world.
  • India enjoys the distinction of being the only country producing all the
    five known commercial varieties of silk viz Mulberry, Tropical Tussar,
    Oak Tussar, Eri and Muga.

Petroleum and natural gas

  • First successful Oil well was dug in India in 1889 at Digboi, Assam.
    At present a number of regions with oil reserves have been identified and
    oil is being extracted in these regions.
  • For exploration purpose, Oil and Natural Gas Commission
    (ONGC) was established in 1956 at Dehradun, Uttarakhand
  • In 2018, India had 23 refineries – 18 in public sector and 3in private sector and 2 in joint venture.
  • Indian Hydrocarbon Vision 2025

To assure energy security by achieving self-reliance through increased indigenous production and investment in equity oil abroad.

To develop the hydrocarbon sector as globally competitive.

Small Scale Industries:

Small scale industries play an important role for the development of Indian
economy in many ways. About 60 to 70 percent of the total innovations in India come from the SSIs. Many of the big businesses today were all started small and then nurtured into big businesses.

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