Karnataka Sugar Industry

Karnataka Sugar Industry ranks 3rd in terms of its contribution of sugar in the total sugar production in the country. The Sugar Industry in Karnataka is able to manufacture sugar in such huge quantities due to the fact that sugarcane is abundantly available in the state. In fact, Karnataka stands 4th in the country in the cultivation of sugarcane.

The Sugar Industry in Karnataka has around 41 sugar factories which are distributed all over the state. The various locations of the sugar factories of Karnataka Sugar Industry are Konnur, Varuna, Koppa, Madapura, Dandeli, Jambagi, Hosur, Margur, Yelgur, Siddapur, and Arsanghatta. The major benefits of Karnataka Sugar Industry are that it has generated many facilities in the state such as communication, employment, and transport. It has also benefited the state by helping in the development of the rural areas of the state by mobilizing the various resources of the villages. The major sugar factories of Karnataka Sugar Industry are:

Bannari Amman Sugar Ltd. with the sugarcane crushing capacity of 5000 TCD

Davangere Sugar Company Ltd. with the sugarcane crushing capacity of 2500 TCD

Sri Chamundeswari Sugars Ltd. with the sugarcane crushing capacity of 4000 TCD

Godavari Sugar Mills Ltd. with the sugarcane crushing capacity of 7500 TCD

Mysore Sugar Company Ltd. with the sugarcane crushing capacity of 5000 TCD

Athani Farmers Sugar Factory Ltd. with the sugarcane crushing capacity of 2500 TCD The Sugar Industry in Karnataka can be divided into 2 groups that are the unorganized sector which comprises of the producers of the traditional sweeteners such as gur and khandsari and the organized sector which consists of the sugar mills. The manufacture of khandsari and gur is considered to be rural industry and are produced in huge quantities. The gur and khandsari are consumed mostly by the rural people as sources of nutrition and also as sweeteners. The total sugar production of Karnataka Sugar Industry came to 17.98 lakh tons in 2002-2003, in 2003-2004 the figure came to 11.57 lakh tons, and in 2004-2005 the figure stood at 13 lakh tons.

The Sugar Industry in Karnataka contributes around Rs. 36 crore per year to the state exchequer in central excise duty. It also contributes more than Rs. 900 crore in the form of turnover tax and sales tax to the state exchequer. The state government in an attempt to boost Karnataka Sugar Industry has set up the Karnataka Sugar Institute (KSI) which has emerged as a center for education and training for sugar technology. The Karnataka Sugar Institute also provides important support to the Sugar Industry in Karnataka by doing R&D in the various aspects of sugarcane processing and production.

Karnataka Sugar Industry has contributed a great deal to India's total level of sugar production and thus has helped the country to meet its demand for sugar. The Karnataka state government must make more efforts in order to boost the sugar industry in karnataka.

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Sugar Industry in Karnataka