Tamil Nadu Sugar Industry

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About Tamil Nadu Sugar Industry



The Agro based sugar mills play an important role in the economic growth of rural areas with the sole aim to generate large scale direct employment. Apart from that, a lot of indirect employment to rural population is also provided. Tamil Nadu Sugar industry is responsible for about 10% of the total sugar production in India. Majority of sugar units in Tamil Nadu lies with the cooperative sector, with some private players' also gathering momentum.

At present, the sugar industry in Tamil Nadu stands in a total mess similar to that of the other rural industries. The sugar industry had faced a boom in the 1980s but the crisis era started from 1990, all after the economic liberalization. With the surge in the procurement price of sugarcane, surplus production and reduction in the open market sugar price, directed the industry and the sugar factories, thereafter to have a glut of stocks.

At present the Tamil Nadu sugar industry comprises of 41 Sugar Mills in Tamil Nadu, with 16 of them in the co-operative sector, 3 sugar mills in public sector and 22 Sugar Mills in the private sector. At present, around 38 Sugar Mills are operational, while 3 mills viz. Madurantakam Co-operative Sugar Mill (from 2001-02 season) Madura Sugars (from 2002-03 season) and Arunachalam Sugar Mills (from 2003-04 season) have stopped functioning.

Sugar production in Tamil Nadu



Year Area registered
(Lakh Hectare)
Sugarcane crushed
(LMT)
Sugar produced
(LMT)
Recovery %
2003-04 1.40 92.80 9.20 9.92
2004-05 2.56 114.92 11.09 9.65
2005-06 2.97 231.46 21.38 9.24
2006-07 3.03 274.49 25.39 9.25
2007-08 2.89 229.68 21.41 9.32
2008-09 2.25 166.41 16.16 9.71


Nine new integrated Sugar complexes in Tamil Nadu



Name of Mills Taluk District
Kothari-Sathamangalam Ariyalur Ariyalur
Rajshree- Semmedu Gingee Villupuram
Sakthi-Modakurichi Erode Erode
Dharani- Kalaianallur Sankarapuram Villupuram
Empee Sugars-Idaikal Ambasamudram Tirunelveli
Shree Ambika-Manjini Attur Salem
Dhanalakshmi
Srinivasan-Udumbiyam
Veppanthattai Perambalur
Bannariamman- Kolunthampattu Thandarampattu Tiruvannamalai
Madras Cements Vengur Tirukoilur Villupuram


Setting up new integrated Sugar complexes in Tamil Nadu



The Sugar industry in Tamil Nadu have come out as a tool for economic translation and the Government had therefore decided set up nine new sugar mills in the state. The new mills have been set up following the guidelines and they will function as integrated Sugar complexes. Till now, three projects viz. Sakthi Sugar Mills, Erode, Kothari Sugar Mills, Ariyalur and Rajshree Sugars and Chemicals Ltd., Gingee have been accomplished and commissioned and it is estimated that the rest of the mills will start their crushing operations during the 2009-10 season. The State Government delimitated the Cane areas for establishment of nine new integrated Sugar complexes with different options of co-generation, distillery and ethanol production, tissue culture lab, soil testing lab and bio-composting.

Location Of Sugar Factory
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