An Economic Analysis of Area, Production and Yield of Sugarcane in India
- Country : India
- Subject : Economics
In India, sugarcane is the key raw material for the production of sugar. Sugarcane is grown in the tropical and sub tropical region of the India. Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Gujarat are the major sugarcane producing states in the tropical regions of India. Subtropical regions include Uttar Pradesh, Bihar, Punjab, Haryana and Madhya Pradesh. Sugarcane is the chief raw material for sugar industry and accounts for about 70 % of the total cost of production of sugar. The purpose of this paper is to examine and better understand the dynamics of area production and productivity of sugarcane in India. The paper is based on secondary data and made use of semi log regression model to test the significance of growth rate of selected variables. Paper concludes that both area and production of sugarcane fluctuate considerably from year to year. This is due to variations in climatic conditions, the vulnerability of areas cultivated under rain fed conditions, fluctuations in prices of sugar, gur and Khandsari and the changes in returns from competing crops. Despite this instability, both area and production of sugarcane have increased considerably during the post independence period. However the stagnation in sugarcane yield is a matter of grave concern.