Economics of Sugarcane Value Chain and Policy Capsules on Value-Added Products

Sugarcane is cultivated as a multi-utility crop for food, fodder, fuel, energy and fibre. It is a renewable resource that can be sustainably grown for sugar and value-added products. The sugarcane value chain comprises price, farmers, producers, traders and end consumers. The study has reported different outputs of sugarcane production in India with a focus on the optimum value creation. The value chain includes sugar, Gur, Khandsari and Jaggery, molasses, bagasse, ethanol, sugarcane tops/trash and others. Sugarcane value chains are much more complex than other crops. This analysis exposes inefficient activities and production expertise which hampers value chain activities. Moreover, the vicious cycle of sugar prices contributes to uneven income dispersal. Additionally, the existing policies do not adequately support sugarcane farmers for high-value chain approach. Therefore, the study has recommended policies for enhancing value chain activities and improving efficiency in sugarcane production through implementing recent cultivation methods, employing artificial intelligence, increasing sugarcane production capacity through precision farming, rejuvenating off-farm activities for value chain production and increasing market share by different value chain approach is necessary in the coming decade in order to sustain sugarcane value chain for benefits of the end users and producers.