~ 573 ~ The Pharma Innovation Journal 2021; SP-10(9): 573-574 ISSN (E): 2277- 7695 ISSN (P): 2349-8242 NAAS Rating: 5.23 TPI 2021; SP-10(9): 573-574 © 2021 TPI www.thepharmajournal.com Received: 22-07-2021 Accepted: 24-08-2021 Neha Dwivedi Ph.D. Scholar, Department of Agricultural Economics and Farm Management, College of Agriculture JNKVV Jabalpur, Madhya Pradesh, India Ashutosh Shrivastava Ph.D. Scholar, Department of Agricultural Economics and Farm Management, College of Agriculture JNKVV Jabalpur, Madhya Pradesh, India Corresponding Author Neha Dwivedi Ph.D. Scholar, Department of Agricultural Economics and Farm Management, College of Agriculture JNKVV Jabalpur, Madhya Pradesh, India Importance of sugarcane production in India and challenges faced by sugarcane industry Neha Dwivedi and Ashutosh Shrivastava Abstract Sugarcane (Saccharum officinarum) is a significant commercial crop of the world as well as India and is cultivated in more than hundred countries like Brazil, India, China, Thailand, Pakistan, Mexico, and Colombia. Almost 60% of world sugar is obtained from sugarcane and remaining from beet root. Sugarcane and sugar mill industry plays a very important role in rural upliftment and mobilization of resources in rural areas. It is a highly organized and controlled Industry. India is second largest producer of sugarcane and stands first in its consumption in worlds ranking. Even though sugarcane is high cost and water galloping crop but as it provides an assured procurement price to the farmer thus farmers are very keen in cultivating this crop, but only 10 percent sugar recovery rate and low productivity are major challenges in front of sugarcane industry. Besides all these issues it still promises a source for bio-fuel, ethanol, bio-manure and bio-electricity the very need for future energy source as the natural sources of these are diminishing day by day. Thus, sugarcane is surely a crop of future and its role in Indian GDP can’t be neglected. There is a wide scope for research and implementation of crop specific policies in this area and it will contribute to sustainable development in this sector. Keywords: sugarcane production, challenges faced, sugarcane industry Introduction Importance of sugarcane in Indian Agriculture Sugarcane (Saccharum officinarum) is one of the most important commercial crops across the world because of its strategic position and immense uses in the daily life of any nation as well as for industrial uses aimed at nutritional and economic sustenance. Sugarcane contributes about 60 percent of the total world sugar requirement while the remaining 40 percent come from sugar beet. Sugarcane Industry in India is second largest agro-based industry after the cotton industry. A large number of human resources is absorbed sugarcane and sugar related Industry either directly or indirectly. Approximately 7.57%of the rural population is engaged in sugarcane industry. The recent annual turnover for this industry is about 90 thousand crores. Sugarcane and its products contribute a about 1.1 percent to the national GDP which is significant considering that the crop is grown only in 3 percent of the gross cropped area, besides providing the employment sugarcane industry has contributed significantly in socio- economic development in the rural India by building school, medical centers and improved transportation facilities in those area where these sugar industries were established. the sugarcane industry of India is self-sufficient to meet huge domestic demand of the country with surplus to import too. The major reason for its popularity among farmer it involves less risk compares to other crop and assures the returns to some extent. Sugar Industry in recent situations Sugarcane and sugar production in India have moved on a cyclical upward trend. In a sugar cycle of roughly 5 years, the industry faces over-production for 3 to 4 years continuously and after this usually experiences lower production foe one or two year, this cycle goes on. The industry experiences such surpluses as this crop is very much popular among farmers because of assured procurement prices and assured buyers for their produce. The returns on cultivating sugarcane are 60-70% more than most other crops. Sugarcane farmers get the gull promised price that has been fixed by governments in form of FRP and SAP. There are no middlemen present between the producers and sugar mills thus sugarcane farmers are keenly interested in continuously growing this crop, even though sometimes payments get delayed as in most cases farmers receives at least two thirds the amount for their produce in a timely manner. Sugarcane crops can withstand weather uncertainties as it is a sturdy crop if situation is not at most harsh