The one of the basic problems of Indian Sugar Industry is excessive sugar stocks, declining sugar sales realisation and high cost of production of sugarcane and sugar. One solution for this is export of sugar which may be possible by ecomisation of production of sugarcane and sugar. In order to correctly understand the problem, various cost components of production of sugarcane in the fields and sugar in the factories have been analysed. In this study, various steps have been suggested to economise the sugar production so as to compete in the world market. Cultivation of sugarcane can be economised by enhancing productivity, use of non-monitory and low cost production technologies, partial mechanisation of cane cultivation, multiple ratooning, inter-cropping with sugarcane and improving sugar recovery from cane. The production cost of sugar inside the factory can be reduced by expanding capacity, optimisation of staff strength and diversification involving proper utilisation of by-products.
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