chapter - iv sugarcane cultivation in...

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CHAPTER - IV

SUGARCANE CULTIVATION IN INDIA

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SUGARCANE CULTIVATION IN INDIA

Introduction:

Agriculture is one of the most significant sector of the Indian Economy.

Agriculture is the only means of living for almost two thirds of the workers in

India. The agriculture sector of India has occupied 43% of India’s geographical

area, and is contributing 16.1% of India’s GDP. Agriculture still contributes

significantly to India’s GDP despite decline of its share in India’s GDP. There are

number of crops grown by farmers. These include different food crops,

commercial crops, oil seeds etc., sugarcane is one of the important commercial

crops grown in India.

Sugarcane is the main source of sugar in Asia and Europe. Sugarcane is

grown primarily in the tropical and sub-tropical zones of the southern hemisphere.

Sugarcane is the raw material for the production of white sugar, jaggery (gur) and

khandsari. It is also used for chewing and extraction of juice for beverage purpose.

The sugarcane cultivation and sugar industry in India plays a vital role

towards socio-economic development in the rural areas by mobilizing rural

resources and generating higher income and employment opportunities. About 7.5

percent of the rural population, covering about 45 million sugarcane farmers, their

dependents and a large number of agricultural labour are involved in sugarcane

cultivation, harvesting and ancillary activities.

There are about nine States in India where sugarcane is grown on a large

extent of area. There are a number of varieties that are grown in India depending

on the suitability of the soil. The area, output and yield and sugarcane cultivation

is subjected to fluctuate in response to policies of the government and also

conditions of cultivation. Taking these into consideration, this chapter presents a

detailed discussion on the cultivation practices of sugarcane, growth of area,

output and yield.

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4.1. Sugarcane cultivation practices in India: Sugarcane plant is a coarse grass which is quite tall about 10-20 feet. A

single plant bears many stems in a tuft. It is a rhizomatous, perennial plant with

thick Solid, aerial stem. The stem clour is variable from white, yellow, black, dark

green, purple, and red or violet. It is jointed and inter nodes are smaller at the base

and increase in length, until it terminates in inflorescence. There are present prop

or shit roots at the lower nodes to give mechanical strength to the stem on the

nodes axial buds are present. Stem contains colored tissues in which many fibro

vascular bundles lie. The inflorescence called an arrow or tarsal. Five different

species of saccharum have been identified, which are important in cane breeding.

All of them are indigenous to old world saccharum officinarum, saccharum baberi,

saccharum sinense, saccharum spotaneum and saccharum robustum in which last

two species are wild.

Sugarcane is planted as stem cuttings which are between are to two feet

along and contain two or more nodes, and the first harvest is about a year. Later,

harvest is usually towards the end of rainy season when the stems are rich sugar

but the plants have not yet developed seeds. In labour cheep areas the harvesting is

by machete (broad heavy knife). Burning the crop before harvest, as the crop

removed the leaves, weeds, and vermin and generally lessens the work. Crop yield

about 50 tons of cane per acre from which about 5 tons of sugar is extracted.

4.1.1. Seed and cultivation: (a). Preparation of Land:

Plough the land thrice length wise and breadth wise and level properly.

Prepare furrows 25cm deep and 75cm apart for short duration and 90cm apart for

medium duration varieties. In hills tracts prepare pits in rows along the contour at

spacing of 30cm in the row and 75cm between the rows. For mid late varieties, an

inter row spacing of 75cm is recommended.

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(b). Selection of sets:

Select top ends of mature healthy disease free canes up to 1/3 of total length

and cut into setts of three eye buds. The seed rate is 40000 to 45000 per hectare.

(c). Seed management:

For control of fungus diseases like red rot, dip cut ends of setts in 0.25%

solution of copper based fungicide.

(d). Planting:

Plant setts end to end in the furrow, with the eye buds facing sideways and

cover with soil. In the pit system, plant 2-3 setts in each pit.

(e). Ratoon crop:

Normally not more than two ratoon crops are recommended. Burn the trash

after spreading uniformly in the area immediately after harvest of the previous

crop. Stubble shaving should be done with a sharp spade wherever the canes are

not cut close to the ground.

(f). Manuring of ratoon crop:

Ratoon crop requires a higher dose of nitrogen than the plant crop. An extra

dose of 25% nitrogen is recommended.

Manure the crop by 25th and 75th days after harvest of the previous crop.

Entire quantity of phosphorus, half of nitrogen and potash are applied as the first

dose and the remaining as the second dose. The first dose is in corporate into the

soil by digging and the second dose applied around the clump and earthling up is

done. Weeding is also done at this time. Irrigation is given as in plant crop.

(g). Water management:

Irrigate the crop 8-10 times depending upon the availability of rains. In

Chittor area more number of irrigations will be necessary. In early growth periods,

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irrigate the crop at more frequent intervals. However, avoid too much moisture

and water stagnation especially during germination and early growth phases.

(h). Nutrient management:

Apply compost or cattle manure, 10t/ha or press mud 5t/ha or dolomite

500kg/ha or calcium carbonate 750kg/ha. In addition, he following fertilizers as

N:P 205: k 20kg/ha are also recommended.

Apply organic manures such as compost/cattle manure/press mud as basal

dose preferably in furrows and mix well with soil before planting.

Apply lime/dolomite/calcium carbonate in the field before final preparation

of the land.

Apply N and K20 in two split doses, the first 45 days after planting and

second 90 days after planting along with earthing up do not apply N beyond 100

days after planting.

Apply entire dose of phosphorus as belonging to a base.

(i). Weed management:

The crop should be weed twice on 45 and 90 days after planting before

application of fertilizers. First weeding is done by digging on the ridges and by

hand in the furrows. Care should be taken to see that the furrows are not filled up

while digging so that tillering is not affected. At the time of second digging, the

crop is partially earthed up to arrest formation of late shoots. With the

commencement of the southwest monsoon, final earthling up should be done to

prevent lodging. At this time, de-trashing is to be done to prevent the possible

germination of auxiliary buds and to reduce pest infestation. Prevent lodging either

by twisting of trash or by propping.

Atrazin 2kg/ha can be applied as a pre-emergent weedicide 3 days after

planting.

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(j). Pest management:

The important pests of sugarcane found in the state are early shoot borers,

top shoot borers mealy bugs, white grubs, termites and rats. Control use pest free

sets for planting. Adhere to clean cultivation. Use traps or poison baiting for

controlling rats. Apply carbonyl 10% dust in the furrows to control termites and

white grubs.

(k). Disease management:

Red rot the most characteristic symptom of the disease is the drying up of

the canes, which when split open will show characteristic red coloration of the

internal tissues with horizontal white patches and the typical foul smell. The

disease is mainly transmitted through infected sets and flowing water and can be

checked only by prophylactic means which are given below.

1. Affected crop should be harvested as early as possible to prevent loss in

yield and deterioration in quality and also to arrest further spread of the

disease. The crop residues should be completely burnt after harvesting.

2. When infection is noticed in the field, the affected clumps should be

uprooted and burnt promptly.

3. Infected crop should never be ratooned.

4. Water should not be let into a healthy crop from diseased areas and as far as

possible; the field may be kept free of standing water by providing drainage

channels.

5. In severely affected areas sugarcane should not be cultivated at least for one

season during which paddy and tapioca can be cultivated.

6. Seed sets should not be collected from diseased crops and from diseased

areas.

7. Movement of seed materials from diseased to healthy areas should be strictly

quarantined.

8. Cultivate red rot resistant varieties.

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9. To control the fungal diseases, in general, dip the cut ends of sets in any of

the copper based fungicide solution before planting.

Other transmissible diseases like grassy shoot, ratoon stunting etc. can be

controlled by heat treatment and by implementing three tier seed programme.

4.2. Sugarcane varieties:

In India, there are number of varieties available based on suitability of

different States of the country. For example in Maharashtra CoC671 and Co86032

and in the drier parts of Tamil Nadu Co86032 are found to be the best varieties for

high productivity and sugar recovery. List of varieties released for commercial

cultivation in different States is given below.

Uttar Pradesh: CoS-687, CoS-87216, CoPlant-84211, CoS-767, CoS-802, CoS7918, CoS-8315, CoS-8432

Bihar: Bo-90, Bo-99, C0S-87268, Bo-104, CoS-767, Bo-109, Bo-106, Bo-128

Assam: Co-1008, Co BLN-9102,Co BLN-9130, Co-6907, Co- 8315, Co-1132, Cajor-1&2

Haryana: CoJ-58, CoJ-83, Co -7717, CoJ-64, CoS-8436, CoS-767, CoLK-8001, Co-975

Gujarat: Co-671, Co-85004, CoC-86008, Co-86032, Co-8021, CoLK-8001

Maharashtra: CoC-671, Co-86032, Co-8014, Co-85004 Karnataka: CoC-671, Co-91002, Co-86032, Co-8011, Co-87044 Andhra Pradesh: CoC-85038, CoA07706, CoV-92103, CoA-8801, CoA-

89082, Co-8504 Tamil Nadu: CoC-95071, CoC-671, CoJ-86141, Co-86032, Co-86249,

CoC-93076

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4.3. Sugarcane growing regions and sugarcane cultivation major states in India:

In India, sugarcane is the key raw material, planted once a year during

January to March. It is the major cost driver for the production of sugar. It being

an agricultural crop is subject to the unpredictable vagaries of nature, yielding

either a bumper crop or a massive shortfall in its cultivation from year to year.

Broadly there are two distinct agro-climatic regions of sugarcane

cultivation in India, viz., tropical and subtropical regions.

However, five agro-climatic zones have been identified mainly for the

purpose of varietal development. They are

1. North Western Zone

2. North Central Zone

3. North Eastern Zone

4. Peninsular Zone

5. Coastal Zone.

(a). Tropical Sugarcane region:

The tropical sugarcane region consists of sugarcane agro climatic zone 4

(peninsular zone) and 5 (Coastal zone) which includes the States of

Maharashtra, Andhra Pradesh, Tamil Nadu, Karnataka, Gujarat, Madhya

Pradesh, Goa, Pondicherry and Kerala.

In the coastal areas of A.P. and Tamil Nadu there are extensive sugarcane

areas with high sugarcane productivities.

Floods, water logging diseases such as red rot are the main problems.

In the tropical region, sugarcane gets more or less ideal climatic conditions

for its growth. So it contributes about 40 per cent to the total cane

production in the country.

The productivities are higher.

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The average cane yields of the major States of the region (Maharashtra,

Tamil Nadu, Karnataka, Andhra Pradesh and Gujarat) are around 80 tons

per hectare.

Maharashtra and the adjoining area of Karnataka, Gujarat and A.P. record

higher sugar recoveries.

Long hours of sunshine, cool nights with clear skies and the latitudinal

position of this area are highly favorable for sugar accumulation. Average

recoveries of Maharashtra and Gujarat are highest in the country.

Moisture stress during the early part of the cane growths mostly during

March to June is an important problem.

Smut and red rot are important disease affecting sugarcane production in

the plateau region and coastal areas, respectively.

Among the pests, early shoot borer, particularly in the late planted crops, is

considerably serious.

(b). Sub-tropical sugarcane region

Around 60-65 per cent of total cane area in the country is in the sub-tropics.

Uttar Pradesh (U.P), Bihar, Haryana and Punjab comes under this region.

Extremes of climate are the characteristic feature of this region.

During April to June, the weather is very hot and dry.

July to October is rainy season accounting for most of the rainfall from S-

W monsoon rains.

December and January are the very cold month’s temperature touching sub-

zero levels in many places.

November to March is cool months with clear sky.

The N-W zone comprising the areas in Haryana, Punjab, Western Rajasthan

and Western U.P. has very low temperature in December-January which

often causes frost.

During May and June, the temperatures are extremely high.

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Because of extremes of weather, the active sugarcane growth is restricted to

4-5 months only.

In Eastern U.P, Bihar, and West Bengal, sugarcane suffers due to floods

and water logging during monsoon months.

Several pests and diseases, particularly red rot and top borer and Pyrilla are

common and serious problem.

The cane yields are lower in the subtropics due to short growing season,

moisture stress, more pest and disease problem, floods and water logging

and very poor ratoons.

The average yield of the four major States (U.P, Bihar, Punjab and

Haryana) is around 55 tons per hectare.

(c). The major sugarcane crop growing States are:

1. Uttar Pradesh

2. Bihar

3. Assam

4. Haryana

5. Gujarat

6. Maharashtra

7. Karnataka

8. Andhra Pradesh

9. Tamil Nadu

The sugar production of sugar is spread across the country. In above States,

they are classified into three groups according to its production capacity. They are,

the high sugar producing States are Maharashtra and Uttar Pradesh. The second

category was the medium sugar producing States. They are Gujarat, Andhra

Pradesh, Tamil Nadu, Karnataka, and Haryana. The remaining States are low

sugar producing States. They were Bihar and Assam.

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As far as marketing of sugarcane is concerned there are distinctively two

ways. (1) Sugarcane directly sold to sugar factories which are used for to

production of sugar. (2) Sugarcane juice is processed and Gur (Jaggery) is

manufactured and sold to wholesale market. Two marketing channels for

sugarcane has been identified.

Channel: 1 Producer Sugar factory Wholesaler Retailer

Consumer

Channel: 2 Producer Processor (Gur) Wholesaler Retailer

Consumer

4.4. Growth in area, production & yield of sugarcane crop in India. Growth in area, production and yield is examined to know the pattern of changes taking place in sugarcane crop in India. For purpose of analysis Nine major sugarcane growing States mentioned above are considered. The growth of area, production and yield of sugarcane for the period 1970-71 to 2010-11 was examined by computing the Compound Annual Rate of Growth (CARG) for different States and for the country as a whole. The opening of the economy with different economic reforms in 1990-91is expected to have an impact on internationally traded agriculture goods which include sugarcane. To capture the impact reforms on sugarcane cultivation, the total period is subdivided into two sub periods. (i) 1970-71 to 1989-90 – pre reform period (ii) 1990-91 to 2010-11 post reform period.

Compound growth rate is computed using the formula given below Y = aebx The instability in the growth is measured by eliminating the trend component from the series. To measure the instability in the growth of area, production & yield of sugarcane Cuddy’s measure of instability is used. It is defined as,

Instability Indices = C.V )2

Where C.V = Co efficient of variation R2 = Co efficient of multiple determination adjusted to degrees of freedom

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Table: 4.1 Growth rates of area under sugarcane cultivation-state wise

total period (1970-71 to 2010-11) (In ‘000 hectares)

States 1970-73 Tri annum

average

2008-11 Tri annum

average

CARG

T – value Instability indices

Karnataka 102.66 (4.14)

309.33 (6.80)

0.97 11.12* 0.08

Haryana 135 (5.44)

101.67 (2.23)

0.67 1.71*** 0.11

Assam 33.33 (1.34)

25.33 (0.56)

0.20 8.07* 0.08

Uttar Pradesh 1309 (52.78)

2087 (45.87)

1.27 19.07* 0.01

Tamil Nadu 132 (5.32)

317.33 (6.97)

1.21 16.50* 0.03

Gujarat 37.33 (1.51)

207 (4.55)

3.17 24.18* 0.03

Bihar 146.03 (5.89)

113.67 (2.50)

-1.00 4.11* 13.42

Andhra Pradesh

124.33 (5.01)

201 (4.42)

1.12 11.37* 0.04

Maharashtra 181.66 (7.33)

871.33 (19.15)

2.67 21.93* 0.03

India 2480

4550 1.87 23.15* 0.01

Source: Agricultural department of India, CMIE reports, Co operative Sugar Figures in brackets are percentage to India * Significant at 1 percent level *** Significant at 10 percent level

Table 4.1 presents details of Compound Annual Rate of Growth (CARG) of

area under sugarcane. In India the area under sugarcane crop has increased from

2480 thousand hectares to 4550 thousand hectares during the period under

consideration, registering the CARG of 1.87 per cent and instability indices are

estimated 0.01. Considering the 40 years period, the estimated growth rate of 1.87

per cent is not impressive.

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Among different States, Uttar Pradesh (U.P) State the area is very large

compared to other States. In U.P the area has increased to 2087 thousand hectares

from 1309 thousand hectares during the reference period registering CARG of

1.27 per cent and the instability indices are 0.01. In Gujarat, Maharashtra, Tamil

Nadu, and Karnataka, the CARG of area is more than that of the country. While In

Assam State where the area is comparatively low in both periods and in fact has

declined from 33.33 thousand hectares to 25.33 thousand hectares with the

negative CARG of – 0.20 and instability indices are 0.08. In Andhra Pradesh the

area has increased to 201 thousand hectares from 124.33 thousand hectares during

the reference period registering a trend CARG of 1.12 and the instability indices

are 0.04.

Among different States considered, in three States Viz., Haryana, Assam

and Bihar, the growth rate is showing declining trend as is evident from negative

growth rate.

A comparison of share of area of each State to that of country’s (in

percentage terms) reveal some interesting results. In both periods the share of

Uttar Pradesh (U.P) is highest. In fact in the initial period, more that 50 percent of

country’s area under sugarcane is concentrated in U.P, this percentage has

declined by end period. Interestingly the State Maharashtra, there is striking

increase in this percentage as is evident from value given in table 4.1

There are very little fluctuations in the area under sugarcane cultivation in

majority States as evidenced from the values of instability indices. One important

point emerges from the values is barring Haryana, Assam and Bihar, all

other states have positive CARG. Further in these States the area under

sugarcane cultivation as percentages to country has increased.

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pre – reform period (1970-71 to 89-90) (In ‘000 hectares)


average

1987-90 Tri annum

average

CARG

T - value Instability indices

Karnataka 102.66 (4.14)

236 (7.04)

1.62 15.05* 0.02

Haryana 135 (5.44)

133 (3.97)

-0.17 2.49 0.10

Assam 33.33 (1.34)

41.33 (1.23)

0.10 2.76 0.08


1774.33 (52.97)

1.27 5.60* 0.03


215.66 (6.44)

1.23 7.89* 0.03

Gujarat 37.33 (1.51)

94 (2.81)

2.67 9.86* 0.05

Bihar 146.03 (5.89)

123.86 (3.70)

-1.00 7.20* 0.02

Andhra Pradesh 124.33 (5.01)

151.66 (4.53)

0.67 0.06 0.08


329.66 (9.84)

3.41 9.36* 0.03

India 2480 3350

2.31 6.29* 0.02

Source: Agricultural department of India, CMIE reports, Co operative Sugar Figures in brackets are percentage to India * Significant at 1 percent level ** Significant at 5 percent level

Table 4.2 shows the changes in area under sugarcane cultivation between

1970-73 triennium and 1987-90 triennium. In India, the area under sugarcane

cultivation has increased to 3350 thousand hectares from 2480 thousand hectares

during period with the CARG rate 2.31 per cent and the instability indices are

0.02.

Among different States, in this period in State Uttar Pradesh the area has

increased to 1774.33 thousand hectares to 1309 thousand hectares with 1.27 per

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cent CARG. In Gujarat State area has increased to 94 thousand hectares from

37.33 thousand hectares with an impressive CARG rate 2.67 per cent and the

instability indices are 0.05. The states Bihar and Haryana have a declining trend.

Other States show a positive growth rate in area during the reference period.


post reform period (1990-91 to 2010-11) (In ‘000 hectares)

States 1990-93 Tri annum average

2008-11 Tri annum

average

CARG


Karnataka 273 (7.38)

309.33 (6.80)

-0.40 0.54 0.16

Haryana 147.66 (3.99)

101.67 (2.23)

-0.71 0.76 0.11

Assam 38 (1.03)

25.33 (0.56)

-0.30 10.49* 0.02


2087 (45.87)

1.10 5.80* 0.02


317.33 (6.97)

1.00 2.44** 0.10

Gujarat 121.66 (3.29)

207 (4.55)

2.07 8.88** 0.03

Bihar 142.33 (3.85)

113.67 (2.50)

-1.00 1.83 0.09

Andhra Pradesh 185 (5.00)

201 (4.42)

0.12 5.02* 0.03


871.33 (19.15)

1.67 5.15* 0.11

India 3700

4550 1.27 6.17* 0.02

Source: Agricultural department of India, CMIE reports, Co operative Sugar Figures in brackets are percentage to India * Significant at 1 percent level ** Significant at 5 percent level The growth rates of area under sugarcane cultivation for different States are

given in table - 4.3 for the post reform period. The area has increased to 4550

thousand hectares in triennium 2008-11 from 3700 thousand hectares for the

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country during the reference period registering CARG of 1.27 and the instability

indices are 0.02. The States Karnataka, Haryana, Assam and Bihar show declining

trends in the area during the period.

Among the States that show positive trend, Gujarat has registered

comparatively higher growth rate. There are very little fluctuations in the area

under sugarcane cultivation in majority States as evidenced from the values of

instability indices. Further, in majority of States, the fluctuations in the area under

sugarcane cultivation in relative terms are more than what is noticed for the

country as a whole.

Interestingly the fluctuations are relatively higher in Karnataka, Haryana,

and Bihar which have declining trend in growth rate. One important point

emerges from the values of trend growth rate and instability indices, that

there is no clear pattern of association between trend growth and instability

indices, as States with positive growth rate and negative growth rate show

higher values of instability indices.

Table: 4.4 Comparative picture of trend growth rate

S.No States 1970- 90 1990-11 1970-2011 1 Karnataka 1.62 -0.40 0.97 2 Haryana -0.17 -0.71 -0.67 3 Assam 0.10 -0.30 -0.20 4 Uttar Pradesh 1.27 1.10 1.27 5 Tamil Nadu 1.23 1.00 1.21 6 Gujarat 2.67 2.07 3.17 7 Bihar -1.00 -1.00 -1.00 8 Andhra Pradesh 0.67 0.12 1.12 9 Maharashtra 3.41 1.67 2.67

India 2.31 1.27 1.87

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A comparative picture of the CARG of two sub periods and total periods is

given in table- 4.4. Among the nine important States in the country, only two

States Haryana and Bihar show declining trend for the total period and also for the

two sub periods. Comparatively in the post reform period, number of States

registering declining trend growth rate are more than pre reform period.

Table: 4.5 Growth rates of production of sugarcane state wise - total period

(in ‘000 tones) States 1970-73

Tri annum average

2008-11 Tri annum

average

CARG


Karnataka 8572.33 (7.05)

26670.33 (8.78)

2.47 10.41* 0.11

Haryana 6040 (4.97)

6467 (2.13)

1.00 5.46* 0.10

Assam 1261.66 (1.04)

1086.33 (0.36)

-2.00 5.14 0.18

Uttar Pradesh 53584.33 (44.07)

116952.67 (38.52)

2.00 18.60* 0.02

Tamil Nadu 10727.33 (8.82)

33539.67 (11.05)

3.00 16.50* 0.04

Gujarat 1871.26 (1.54)

14668 (4.83)

4.60 17.52* 0.05

Bihar 5142.63 (4.23)

4603 (1.52)

-0.16 0.78 0.50

Andhra Pradesh

9870.23 (8.12)

15792 (5.20)

2.41 10.52* 0.06

Maharashtra 12727.67 (10.47)

71082.33 (23.41)

3.42 0.003 0.09

India 121600

303630

3.00 19.33* 0.03


The production of the sugarcane in India has increased to 303630 thousand

tons from 121600 thousand tones in registering CARG of 3.00 during the period

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under reference. Considering the 40 years the estimated growth rate is marginal,

the estimated instability indices do not suggest much variation. The performance

in Gujarat, Maharashtra and Tamilnadu is fairly good than other States.

The production of sugarcane in States considered for analysis shows that

barring Assam, have positive trend. In Uttar Pradesh, the production has increased

to 116952.67 thousand tons from 53584.33 thousand tones during reference period

with the CARG of 2.00 per cent. In Assam State, the production has declined from

1261.66 thousand tones to 1086 thousand tones in during the period with

registering a decline CARG -2 per cent. The figures of the estimated instability

indices of production of sugarcane cultivation in majority of States do not show

wide instability. The performance in Gujarat, Maharashtra and Tamilnadu is fairly

good than other States.

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Table: 4.6 Growth rates of production under sugarcane-state wise (1970-71 to 89-90) (in ‘000 tones)


average

1987-90 Tri annum

average

CARG


Karnataka 8572.33 (7.05)

19174 (9.20)

3.50 18.26* 0.01

Haryana 6040 (4.97)

6393.33 (3.07)

-1.00 1.65*** 0.12

Assam 1261.66 (1.04)

1804.66 (0.87)

1.12 5.09* 0.09

Uttar Pradesh 53584.33 (44.07)

92999.67 (44.61)

2.17 10.58* 0.02

Tamil Nadu 10727.33 (8.82)

22663 (10.87)

3.06 8.16* 0.04

Gujarat 1871.26 (1.54)

7981.66 (3.83)

4.17 15.20* 0.03

Bihar 5142.63 (4.23)

5574.23 (0.28)

-1.00 1.69*** 0.11


10463.66 (5.02)

1.20 5.82* 0.09

Maharashtra 12727.67 (10.47)

28164 (13.51)

4.72 6.65* 0.07

India 121600

208450

2.87 11.53* 0.02

Source: Agricultural department of India, CMIE reports, Co operative Sugar Figures in brackets are percentage to India * Significant at 1 percent level *** Significant at 10 percent level

Table 4.6 gives data relating to production of sugarcane during the period

1970-71 to 89-90, the production of the sugarcane in India has increased to

208450 thousand tons in triennium 1987-90 from 121600 thousand tons in

triennium 1970-73 with the CARG rate 2.87 and the instability indices are 0.02,

indicating very marginal fluctuations.

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The CARG of sugarcane production of Maharashtra, Gujarat,

Karnataka and Tamil Nadu is more than that of the country’s rate of growth.

In fact, the performance of Maharashtra and Gujarat is good. The

production of sugarcane has phenomenal increase these two States. There is

an increase in the share of these States in country’s total sugarcane

production. Thus, the increase in sugarcane production that is observed for

the country can be attributed to the better output performance from these

four States.

The production of sugarcane in majority of States has positive trend as is

evident from the values of CARG. But in Haryana, Bihar the production has

declining trend. In Uttar Pradesh state, the production has increased to 92999.67

thousand tons from 53584.33 thousand tones in this during period with the trend

CARG 2.17. In Andhra Pradesh State, the production in absolute terms has

increased from 9870.23 thousand tones to 10463.66 thousand tones, registering

CARG of 1.20 per cent.

119

Table: 4.7 Growth rates of production under sugarcane-state wise

(1990-91 to 2010-11)

(in ‘000 tones) States 1990-93

Tri annum average

2008-11 Tri annum

average

Compound growth rate

T-value Instability indices

Karnataka 22520.33 (9.34)

26670.33 (8.78)

0.01 -0.75 0.21

Haryana 7783.33 (3.23)

6467 (2.13)

0.08 1.40 0.08

Assam 1508 (0.63)

1086.33 (0.36)

-1.34 6.44* 0.05


116952.67 (38.52)

1.00 3.19* 0.04

Tamil Nadu 23810.33 (9.88)

33539.67 (11.05)

1.21 2.31** 0.10

Gujarat 10570.33 (4.39)

14668 (4.83)

1.47 11.21* 0.01

Bihar 6970.66 (2.89)

4603 (1.52)

-2.00 4.40* 0.06


15792 (5.20)

1.12 4.77* 0.05

Maharashtra 35062 (14.55)

71082.33 (23.41)

3.00 2.56* 0.22

India 241020 (100)

303630 (100)

1.10 3.61* 0.05


Table 4.7 gives data relating to sugarcane production for the period 1990-

91 to 2010-11. The production of the sugarcane in India has increased to 303630

thousand tons in triennium 2007-10 from 241020 thousand tons in 1990-93 with

the trend CARG 1.10 per cent, with very little variation as indicated by the value

of instability indices.

120

Barring Assam all States in India have registered an increasing trend

as revealed by positive CARG. In fact, the performance of Gujarat,

Maharashtra and Tamil Nadu is impressive as the trend growth rates are

higher than that of country as a whole. State wise distribution of output show a

mixed pattern as some States have significantly improved their share while there is

decline in case of some other States. As far as proportion of individual State to that

of nation is concerned the share of U.P has decreased while that Maharashtra,

there is increase. The State which improved their positions are Karnataka, Tamil

nadu, Gujarat and Maharashtra, while Haryana, Assam, Bihar and Andhra Pradesh

the share has declined.

Table: 4.8 Comparative picture of trend growth rate

S.No States 1970-2011 1970-90 1990-2011

1 Karnataka 2.47 3.50 0.01

2 Haryana 1.00 -1.00 0.08

3 Assam -2.00 1.12 -1.34

4 Uttar Pradesh 2.00 2.17 1.00

5 Tamil Nadu 3.00 3.06 1.21

6 Gujarat 4.60 4.17 1.47

7 Bihar -0.16 -1.00 -2.00

8 Andhra Pradesh 2.41 1.20 1.12

9 Maharashtra 3.42 4.72 3.00

India 3.00 2.87 1.10

The comparative picture of CARG reveals that it is state Bihar the

trend growth rate show declining trend in both the periods and for overall

period. The estimated values of CARG suggests that during the post reform

period 1990-2011, there is less growth than the first period i.e. the increase in

production of sugarcane is comparatively higher in first period (table-4.8).

121

In this period also the performance of Maharashtra, Gujarat is

impressive as the CARG of production is exceeding than that of what is

noticed for the country as a whole. The States Assam and Bihar, in this period

also have declining trend.

As far as changes in the distribution of output, it is noticed that the

share of Maharashtra has significantly increased from 14.55 per cent to 23.41

per cent. In both the periods the contribution of the State of Uttar Pradesh is

highest, despite the fact that there is a declining the share. In case of Andhra

Pradesh also there is a marginal decline in the share from 5.52 per cent to

5.20 per cent.

Table: 4.9 Growth rates of yield under sugarcane cultivation-state wise total period

(1970-71 to 2010-11) (In tons /hectares)


average

2008-11 Tri annum

average

CARG

T-value Instability indices

Karnataka 83.06 86.70 0.21 14.51* 0.06

Haryana 44.73 64.17 1.45 11.96* 0.04

Assam 37.93 44.27 0.41 8.77* 0.11

Uttar Pradesh 40.9 56.27 1.48 13.09* 0.02

Tamil Nadu 81.23 104.87 2.08 6.46* 0.03

Gujarat 49.9 72.99 2.87 14.08* 0.10

Bihar 35.1 40.53 0.16 6.08* 0.10

Andhra Pradesh 79.63 78.20 1.55 12.90* 0.05

Maharashtra 70.9 81.83 1.60 8.59* 0.08

India 489.20 665.54 1.46 12.19* 0.02

Source : Agricultural department of India, CMIE reports, Co operative Sugar Figures in brackets are percentage to India * Significant at 1 percent level

122

Having discussed growth in Area and output, the focus now turns to discuss

growth of yield. The yield of sugarcane in India has increased to 66554.33 tons/

hectare in triennium 2008-11 from 48920 tons/ hectare in triennium 1970-73

registering CARG rate 1.46 per cent and the value is significant at one per cent

level.

Among States, in Uttar Pradesh State the yield of sugarcane has increased

to 56.27 tones /hectare from 40.9 tones /hectare during the period registering trend

CARG of 1.48. In Bihar State, the yield has increased to 40.53 tones /hectare from

35.1 tones /hectare during the reference period with registering CARG rate 0.16

per cent and the instability indices are 0.10. In Andhra Pradesh State, the yield has

decreased from 79.63 tons/hectare to 78.20 tons/hectare during the period

registering CARG of 1.55 per cent.

Barring the State of Maharashtra, the trend growth rate of sugarcane per

hectare yield has positive growth, with abysmally less fluctuations in yield over

the period as is evident from the values of instability indices.

123

Table: 4.10 Growth rates of yield under sugarcane cultivation-state wise pre – reform

period (1970-71 to 89-90) (In tons /hectares)


average

1987-90 Tri annum

average

CARG


Karnataka 83.06 81.60 0.09 7.16* 0.01

Haryana 44.73 46.90 0.47 5.01* 0.12

Assam 37.93 43.70 0.76 4.83* 0.09

Uttar Pradesh 40.90 52.43 0.98 8.67* 0.02

Tamil Nadu 81.23 105.26 2.19 5.07* 0.04

Gujarat 49.90 84.76 2.26 19.49* 0.03

Bihar 35.10 44.96 0.41 5.30* 0.11

Andhra Pradesh 79.63 68.90 0.68 7.10* 0.09

Maharashtra 70.90 85.16 0.97 8.13* 0.07

India 489.20 622.03 1.02 16.13* 0.04

Source: Agricultural department of India, CMIE reports, Co operative Sugar Figures in brackets are percentage to India * Significant at 1 percent level State wise growth rates of yield for the first period are given in table- 4.10.

From the above table, it is clear that the yield of sugarcane in India has increased

to 622.03 tons/ hectare in 1987-90 from 489.20 tons/ hectare in triennium 1970-73

registering CARG of 1.02 per cent.

Among different States, the increase in absolute terms is high in Tamil

Nadu and low in Assam State. In Tamil Nadu the yield increased to 105.26 tones

/hectare from 81.23 tones /hectare during the period with registering CARG of

2.19 and instability indices is 0.04. In Assam State, the yield has increased to

43.70 tones /hectare from 37.93 tones /hectare during the reference period with

registering CARG of 0.76 and the instability indices are 0.09. In Karnataka and

Andhra Pradesh the yield growth is showing negative trend.

124

In majority of sugarcane growing States, there are very little changes in

yield of sugarcane during the reference period. As evidenced from the values of

instability indices. The fluctuations are relatively higher in Haryana, Bihar,

Andhra Pradesh and Maharashtra States.

Table: 4.11 Growth rates of yield under sugarcane cultivation-state wise

post – reform period (1990-91 to 2010-11) (In tones/hectares)


average

2008-11 Tri annum

average

CARG


Karnataka 82.5 86.70 0.19 9.30* 0.07 Haryana 52.5 64.17 0.67 4.29* 0.03 Assam 39.76 44.27 0.24 4.88* 0.06 Uttar Pradesh 56.23 56.27 -0.21 5.80* 0.03 Tamil Nadu 104.13 104.87 0.47 4.30* 0.01 Gujarat 86.76 72.99 -0.21 9.14* 0.06 Bihar 48.9 40.53 -0.57 6.27* 0.06 Andhra Pradesh 71.73 78.20 0.71 5.32* 0.03 Maharashtra 80.9 81.83 -0.17 7.18* 0.09 India 651.0 665.5 0.19 5.50* 0.04

Source: Agricultural department of India, CMIE reports, Co operative Sugar Figures in brackets are percentage to India * Significant at 1 percent level State wise CARG of yield in reform period are given in present table: 11.

From the above table the yield of sugarcane in India has increased to 665.54 tons/

hectare in 2007-10 from 651.00 tons/ hectare in 1990-93 with registering trend

CARG of 0.19 per cent and the instability indices are 0.04.

In this period, the yield of sugarcane is high in Tamil Nadu and low in

Assam State. In Tamil Nadu the yield increased to 104.87 tones /hectare from

104.13 tones /hectare during the period with registering trend CARG of 0.47 per

cent and instability indices is 0.01. In Assam State, the yield has increased to

44.27 tones /hectare from 39.76 tones /hectare during the reference period the

125

estimated CARG is 0.24 per cent and the instability indices are 0.06. In Gujarat

and Bihar, the CARG of yield show declining trend. In Gujarat the yield has

decreased from 86.76 tones /hectare in 1990-93 to 70.97 tones /hectare in 2008-11,

the CARG is negative -0.21 per cent and 0.06 instability indices. In Bihar State

the yield is decreased from 48.9 tones /hectare in 1990-93 to 40.53 tones /hectare

in 2008-11 with registering trend growth rate is -0.57 per cent.

There are very little changes in yield of sugarcane during the reference

period. In majority States as evidenced from the values of instability indices. The

fluctuations in the yield under sugarcane in number of States are less than what is

noticed for the country as whole.

Table: 4.12

Comparative picture of trend growth rate S.No States 1970-2011 1970-1990 1990-2011

1 Karnataka 0.21 0.09 0.19

2 Haryana 1.45 0.47 0.67

3 Assam 0.41 0.76 0.24

4 Uttar Pradesh 1.48 0.98 -0.21

5 Tamil Nadu 2.08 2.19 0.47

6 Gujarat 2.87 2.26 -0.21

7 Bihar 0.16 0.41 -0.57

8 Andhra Pradesh 1.55 0.68 0.71

9 Maharashtra 1.60 0.97 -0.17

India 1.46 1.02 0.19

The comparative picture of trend growth rate reveals that for the

country trend growth rate is high in the first period i.e. pre reform period

compare than post reform period. The estimated values of CARG suggests

that during the post reform period 1990-2011, there is less growth than the

126

first period i.e. the increase in yield of sugarcane is comparatively higher in

first period. In this period also the performance of Gujarat and Tamil Nadu

is impressive as the CARG of yield is exceeding than that of what is noticed

for the country as a whole. The States Uttar Pradesh, Gujarat, Bihar and

Maharashtra have declining CARG in the post reform period. For the State

of Andhra Pradesh, the performance is comparatively good in Pre reform

period.

4.5. Sugarcane cultivation in Andhra Pradesh:

(a). Growth of Area under sugar cane cultivation:

This study as pointed out earlier is carried out in Visakhapatnam district of

Andhra Pradesh State. District wise analysis of sugarcane cultivation in A.P is

attempted. For this, Eight major sugarcane cultivating districts are considered.

Compound growth rate and Co efficient of Variation (C.V) are estimated.

127

Table: 4.13 Growth rates of area under sugarcane cultivation-Districts wise

1970-71 to 2010-11 (Area in ‘000 hectares)

Districts 1970-73 Tri annum

average

2008-11 Tri annum

average

CARG

T – value CV

Visakhapatnam 19174 (15.42)

41880.33 (20.84)

3.12 12.54* 31.29

East Godavari 16264 (13.08)

18788 (9.35)

0.80 12.16 17.59

West Godavari 20964 (16.86)

37630.67 (18.72)

2.17 6.60* 22.69

Krishna 10293 (8.28)

15923.67 (7.92)

0.67 3.47* 26.93

Chittor 15733.67 (12.65)

35156 (17.49)

1.87 9.53* 29.57

Medak 7931.33 (6.38)

24497.67 (12.19)

1.97 2.07*** 28.06

Nizamabad 16139.33 (12.98)

19164.33 (9.53)

-0.27 4.40* 25.98

Andhra Pradesh

124330

201000

1.12 11.37* 20.00

Source: Statistical abstract of Andhra Pradesh, CMIE reports, Co-operative sugar, Directorate of Economics and Statistics Figures in brackets are percentage to India * Significant at 1 percent level *** Significant at 10 percent level

Table 4.13 presents details of CARG of area. In Andhra Pradesh, the area has increased from 124330 thousand hectares in triennium 1970-73 to 201000 thousand hectares in triennium 2008-11. In this period the CARG is 1.12 per cent, the C.V being 20.00 per cent.

Among the major sugarcane growing districts, in Visakhapatnam district, the area under sugarcane cultivation has increased to 41880.33 hectares in triennium 2008-11 hectares from 19174 in triennium 1970-73. In this period, compound annual growth rate 3 per cent and the C.V. is 31.29. Surprisingly, the value of growth rate and C.V is maximum in Visakhapatnam district. Nizamabad

128

is the only district wherein the area growth rate showing deceleration (-0.27 per cent) with 25.97 C.V. value. In both initial and end period, the share of area under sugarcane cultivation of Visakhapatnam district, to that of State in relative terms is maximum. In fact this share has increased during the period under reference. Further, the major sugarcane growing districts in A.P, have positive CARG without wide fluctuations in area.

Table: 4.14 Growth rates of area under sugarcane-District wise



average

1987-90 Tri annum

average

CARG

T – value C.V


29610.67 (19.52)

2.01 5.02* 9.97


13085.33 (8.63)

1.00 7.11* 19.94

West Godavari 20964 (16.86)

23767.33 (15.67)

-0.23 3.22* 15.85

Krishna 10293 (8.28)

13051.67 (8.62)

0.33 4.71* 15.14

Chittor 15733.67 (12.65)

23494.67 (15.49)

1.21 7.80* 10.98

Medak 7931.33 (6.38)

24025.67 (15.84)

3.01 5.25* 25.07

Nizamabad 16139.33 (12.98)

24493.33 (16.15)

1.37 2.10** 20.15

Andhra Pradesh 124330 151660 0.67 0.06 8.00 Source: Statistical abstract of Andhra Pradesh, CMIE reports,

Co-operative sugar, Directorate of Economics and Statistics Figures in brackets are percentage to India * Significant at 1 percent level ** Significant at 5 percent level

Table 4.14 presents details of CARG of area between 1970-71 to 1989-90

(pre reform period). In Andhra Pradesh, the area has increased from 124330

129

thousand hectares in triennium 1970-73 to 151660 thousand hectares in triennium

1987-90. In this period CARG is estimated at 0.06 and the C.V. is 8.00.

In Andhra Pradesh State the Medak and Visakhapatnam districts are having

the highest cultivated area under sugarcane cultivation. In Medak district, the area

under sugarcane cultivation is increased to 24025.67 hectares in triennium 1987-

90 hectares from 7931.33 during period under reference. In this period the growth

rate is 3.01 per cent, the value of C.V is 25.07. In Visakhapatnam district, the area

has increased from 19174 hectares in triennium 1970-73 to 29610.67 hectares in

triennium 1987-90 with trend growth rate 2.01 per cent, value of C.V is 9.97. (All

districts barring West Godavari has positive trend growth in pre reform period).

The value of C.V. of different districts does not reveal wide fluctuations in

area.

130

Table: 4.15 Growth rates of area under sugarcane-District wise



average

2008-11 Tri annum

average

CARG

T – value C.V


41880.33 (20.84)

1.01 1.14*** 18.49


18788 (9.35)

1.00 1.76*** 14.57

West Godavari 30810.67 (16.65)

37630.67 (18.72)

0.87 3.66* 14.33

Krishna 19321.33 (10.44)

15923.67 (7.92)

-1.00 1.27*** 22.32

Chittor 31006.33 (16.76)

35156 (17.49)

0.00 0.31*** 20.29

Medak 34964 (18.90)

24497.67 (12.19)

-0.62 2.55** 24.28

Nizamabad 31610 (17.09)

19164.33 (9.53)

-1.02 2.92* 21.26

Andhra Pradesh 185000

201000

0.12 5.02* 8.00

Source: Statistical abstract of Andhra Pradesh, CMIE reports, Co-operative sugar, Directorate of Economics and Statistics

Figures in brackets are percentage to India * Significant at 1 percent level ** Significant at 5 percent level *** Significant at 10 percent level Table 4.15 presents details of CARG of area during the period 1990-91 to

2010-11. In Andhra Pradesh, the area has increased from 185000 thousand

hectares in triennium 1990-93 to 201000 thousand hectares in triennium 2008-11.

In this period the growth rate is 5.02 and value of C.V is 8.00.

In Andhra Pradesh State the Visakhapatnam districts has larger extent of

cultivated area under sugarcane cultivation in both periods. In Visakhapatnam

district, the area under sugarcane cultivation is increased to 41880.33 hectares in

triennium 2008-11 hectares from 38359 hectares in triennium 1990-93. In this

131

period the CARG is 1.01 per cent and the value of C.V is 18.49. During this

period, districts Krishna, Medak and Nizamabad have registered negative growth

rate revealing a deceleration trend.

Table: 4.16 Growth rates of production under sugarcane-District wise

1970-71 to 2010-11 (Production in tons)


average

2008-11 Tri annum

average

CARG

T – value C.V

Visakhapatnam 189817.67 (19.23)

229233.7 (14.52)

1.02 5.58* 24.03


126220.7 (7.99)

0.12 3.30* 20.03

West Godavari 210380.33 (21.31)

284527.3 (18.02)

1.82 5.28* 27.68

Krishna 96963.67 (9.83)

122760.7 (7.77)

2.01 6.87* 30.48

Chittor 121244.67 (12.28)

250810.7 (15.88)

2.01 9.25* 34.43

Medak 52790 (5.35)

211168.7 (13.37)

3.10 7.55* 41.92

Nizamabad 139035 (14.09)

463515.7 (29.35)

2.17 8.80* 21.92


1579200

2.41 10.52* 24.00


Figures in brackets are percentage to India * Significant at 1 percent level The production of sugarcane in different districts of Andhra Pradesh State

during the study period is in positive trend as the evidence from the values of

CARG given in table- 4.16 show. Considering forty years, the trend growth of

output of sugarcane does not indicate an impressive performance both at the

State and for majority of districts. Among the major sugarcane growing

districts, the compound annual rate of growth in respect output Medak

district has registered highest growth, and C.V value is also maximum for

Medak indicating high growth and wide fluctuation during the period under

132

reference. Visakhapatnam district, the CARG is positive, the C.V value does

not reveal much fluctuations.

Table: 4.17 Growth rates of production under sugarcane-Districts wise 1970-1990

(Area in ‘000 hectares) Districts 1970-73

Tri annum average

1987-90 Tri annum

average

CARG

T–value C.V

Visakhapatnam 189817.67 (19.23)

156562.33 (14.96)

-1.12 2.70* 17.16


102559.67 (9.80)

-0.83 5.04* 17.98

West Godavari 210380.33 (21.31)

189362.67 (18.10)

-1.87 2.99* 17.16

Krishna 96963.67 (9.83)

112997 (10.80)

1.27 6.21* 14.39

Chittor 121244.67 (12.28)

182968.67 (17.49)

1.72 3.56* 11.94

Medak 52790 (5.35)

117008.33 (11.18)

3.20 1.11 44.04

Nizamabad 139035 (14.09)

126430 (12.08)

-0.87 1.75*** 22.01

Andhra Pradesh 987023 (100)

1046366 (100)

1.20 5.82* 9.00


Figures in brackets are percentage to India * Significant at 1 percent level *** Significant at 10 percent level

The production in Visakhapatnam, East Godavari, West Godavari and

Nizamabad districts of Andhra Pradesh State in pre reform period is in negative

trend as the evidence from the values of CARG reveals. There is deceleration of

sugarcane production in all the districts considered for analysis barring Chittor and

Medak. The district Medak registered a higher positive trend growth rate.

133

In Visakhapatnam district, the production has decreased from 189817.67

tons in triennium 1970-73 from 156562.33 tons in triennium 1987-90 with the

CARG -1.12 and the C.V is 17.16.

Table: 4.18 Growth rates of production under sugarcane-Districts wise



average

2008-11 Tri annum

average

CARG

T – value C.V


229233.7 (14.52)

2.12 4.30* 17.48


126220.7 (7.99)

1.01 3.20* 21.92

West Godavari 205137.33 (15.43)

284527.3 (18.02)

1.10 2.97* 25.38

Krishna 141627.33 (10.65)

122760.7 (7.77)

0.87 8.60* 19.04

Chittor 195189.33 (14.68)

250810.7 (15.88)

1.87 8.30* 27.60

Medak 135996.33 (10.23)

211168.7 (13.37)

3.40 7.27* 26.42

Nizamabad 140705.33 (10.58)

463515.7 (29.35)

3.14 2.45** 21.33


1579200 1.12 4.77* 12.00


Figures in brackets are percentage to India * Significant at 1 percent level ** Significant at 5 percent level

During post reform period, the production of the sugarcane in Andhra

Pradesh has increased to 1579200 tons in triennium 2008-11 from 1329567 tons in

triennium 1990-93 with the CARG 1.12 and the value of C.V is 12.00.

Nizamabad district having major production, i.e. the production has

increased to 463515.7 tons in triennium 2007-10 from 140705.33 tons in

triennium 1990-93 with CARG 3.14 and the value of C.V 21.33. In contrast to the

134

period 1970-1990, the period 1990-2011, the performance shows an encouraging

trend in terms sugarcane production.

Table: 4.19 Growth rates of yield under sugarcane cultivation-Districts wise 1970-2010

(yield in Kg/ ha) Districts 1970-73

Tri annum average

2008-11 Tri annum

average

CARG

T – value C.V

Visakhapatnam 9688.67

9787.12

0.32 6.26* 6.22

East Godavari 7909.67

9148.33

0.87 9.12* 12.50

West Godavari 9940.33

10072.33

0.12 8.11* 10.30

Krishna 9490

9734.67

0.22 12.00* 16.61

Chittor 8316

8926

0.41 3.02* 9.79

Medak 6978.33

8256.33

0.71 4.12* 9.38

Nizamabad 8490.33

5109

0.82 3.21* 8.52


78200

0.67 3.90** 11.61


Figures in brackets are percentage to Andhra Pradesh * Significant at 1 percent level ** Significant at 5 percent level

District wise growth rates of yield are given in present table- 4.19. From the

above table the yield of sugarcane in Andhra Pradesh has decreased from 79630

kg/hectare in triennium 1970-73 to 78200 kg/ hectare in triennium 2008-11 with

registered CARG 0.67 per cent. There is a marginal fluctuation in the yield over

the period as revealed by value of C.V. The yield performance for the State and

for all the major sugarcane growing districts is not impressive for the reference

period.

135

In Andhra Pradesh the high yield is in West Godavari in both periods. The

yield in West Godavari district has increased to 10072.33 kg/hectare in triennium

2008-11 from 9940.33 kg/hectare in the triennium 1970-73. The value of C.V is

estimated at 10.30 which shows that there are marginal fluctuations in the yield

during reference period. From the values of CARG, it can be concluded that

yield of sugarcane in major sugarcane growing districts and for the State is

more or less stagnant, with little fluctuations.

Table: 4.20 Growth rates of yield under sugarcane cultivation-Districts wise 1970-90

(yield in Kg/ ha) Districts 1970-73

Tri annum average

1987-90 Tri annum

average

CARG

T – value C.V


5237.67

-1.31 6.19* 24.38


8054

1.21 6.26* 5.63


8307.33

-1.31 5.02* 11.14

Krishna 9490

9348

-0.57 4.33* 10.01

Chittor 8316

7438

-0.80 19.5* 6.76

Medak 6978.33

7707.67

-1.17 10.1* 10.78

Nizamabad 8490.33

7976.67

1.87 17.2* 10.90


68900

-1.87 17.2* 10.90


Figures in brackets are percentage to India * Significant at 1 percent level

District wise growth rates of yield are given in table- 4.20. From the above

table the yield of sugarcane in Andhra Pradesh has decreased from 79630

136

kg/hectare in triennium 1970-73 to 68900 kg/ hectare in triennium 1987-90 with

registering trend growth rate -1.87 and C.V value is 10.90.

Barring the East Godavari all major sugarcane growing districts are

showing negative compound annual growth rates. Visakhapatnam district has also

registered negative CARG -1.31 per cent with value of C.V 24.38. Among

different district, the yield fluctuations during the reference period are maximum

in case of Visakhapatnam district. Thus, during the pre reform period, the yield of

sugarcane in major sugarcane growing districts and for the State, have

deceleration.

Table: 4.21

Growth rates of yield under sugarcane cultivation-Districts wise 1990-2010 (yield in Kg/ ha)

Districts 1990-93 Triennium average

2008-11 Triennium average

CARG

T – value C.V


5860.67

1.12 5.80* 10.53


9148.33

1.21 3.79* 10.82


10072.33

2.01 5.53* 11.71

Krishna 9380.33

9734.67

0.18 9.60* 9.70

Chittor 7848

8926

0.18 9.10* 10.03

Medak 7015.67

8256.33

0.87 4.05* 11.67

Nizamabad 7759.67

5109

0.16 7.25* 9.95


78200

0.83 5.23* 7.70


Figures in brackets are percentage to India * Significant at 1 percent level

137

District wise growth rates of yield are given in table: 21. From the above

table the yield of sugarcane in Andhra Pradesh has increased to 78200 kg/hectare

in 2008-11 to 71730 kg/hectare in 1990-93 with registering CARG 0.83.

In West Godavari district the yield increased to 10072.33 kg/hectare in

triennium 2007-10 from 7728.67 kg/hectare in triennium 1990-93 with the CARG

2.01 per cent and the value of C.V is 11.71.

There are very little fluctuations in yield of sugarcane during the reference

period in majority districts as evidenced from the values of C.V. The fluctuations

in the yield under sugar cane in relative terms are more than what is noticed for the

State as whole. During the post reform period, the yield growth rate is positive

Vis-à-vis pre reform period.

4.6. Response of sugarcane cultivation to Price:

Economics theory relating to the role of price mechanism, assumes that

each economic unit tries to maximize profits. Profit maximization governs the

behavior of the producers. Some economists believed that, this assumption holds

good in case of non-agricultural enterprises than that of agriculture sector.

However, in agriculture for commercial crops, the output which is totally

marketed, price plays an important role in the decision of farmers to grow or to

increase area under a particular commercial crop or not. Further, a number macro

and micro level factors are expected to influence the decision of crop pattern by

farmers. The important macro level factors include (a) output price (b) price of

inputs and subsidies. Taking these considerations, government of India has created

the Committee of Agriculture Costs and Price. The main responsibility of this

committee is making an assessment of Cost of Production of important crops that

are widely cultivated in the country and announce of remunerative price before

agriculture season starts. Sugarcane is one such crop whose price is decided by the

committee, the sugar factories are expected to pay this price while purchasing cane

from sugarcane growers. The hypothesis is in case of agricultural products, the

138

area and output will be responsive to price, if a little time is allowed for

adjustment.

Taking this hypothesis into consideration, this study endeavors to examine

the impact of cane price as decided by CAPC, on area and output under sugarcane

cultivation. For this purpose we considered, the area and sugarcane price,

correlation is estimated between these two variables. Assertion is that the

lucarativeness of the crop depends on price the farmers received and the cost of

production. Since a significant portion sugarcane is purchased by sugar factories.

Table: 4.22 Correlation between MSP and OUTPUT & MSP and AREA

Time Period Correlation between MSP and Output

Correlation between MSP and Area

India 1970-2011 56.20 63.31 1970-1990 63.31 85.10 1990-2011 67.41 89.13

Andhra Pradesh 1970-2011 53.20 68.40 1970-1990 56.30 72.40 1990-2011 67.20 81.10

Visakhapatnam 1970-2011 51.60 57.50 1970-1990 43.10 59.40 1990-2011 46.40 54.40

Correlation between (1) price and Area (2) Price and Output is estimated. The results are given in table-4.22. This analysis revealed that at the country level the values indicate strong correlation than that of AP State and Visakhapatnam district. Among the two variables considered, the area response to MSP is observed to be more positive than output response to MSP. This is noticed for the total period and also for the two sub periods. This pattern of relationship is found at the National, State and district level. Thus the hypothesis can be said to be as true. Further, the response of area and output is observed to be marginally high in post reform period than pre reform period.

139

Graphs:

Figure: 4.1 India - For total period

Figure: 4.2

India - For pre reform period

140

Figure: 4.3 India - For post reform period

Figure: 4.4 Andhra Pradesh- For total reform period

141

Figure: 4.5 Andhra Pradesh - For pre reform period

Figure: 4.6 Andhra Pradesh - For post reform period

Figure: 4.7 Visakhapatnam - For total reform period

142

Figure: 4.8 Visakhapatnam - For pre reform period

Figure: 4.9 Visakhapatnam - For post reform period

143

Conclusion

To estimate the trend growth rate of area, output and yield of sugarcane

crop. The total period is divided into two periods. (i) 1970-71 to 1989-90 – pre

reform period (ii) 1990-91 to 2010-11 post reform period. One important point

emerged from the values is barring State Haryana, Assam and Bihar, all other

states have positive CARG in area. Comparatively in the post reform period,

number of States registering declining trend growth rate are more than pre reform

period. The CARG of sugarcane production of Maharashtra, Gujarat, Karnataka

and Tamil Nadu is more than that of the country’s rate of growth. The estimated

values of CARG suggest that during the post period 1990-2011, there is less

growth than the first period. In this period also the performance of Maharashtra,

Gujarat is impressive as the CARG of production is exceeding than that of what is

noticed for the country as a whole. In both the periods the contribution of the State

of Uttar Pradesh is highest, despite the fact that there is a decline in the share. In

case of Andhra Pradesh also there is a marginal decline in the share from 5.52 per

144

cent to 5.20 per cent during the period under consideration. The comparative

picture of trend growth rate reveals that it is India’s trend growth rate is high in the

pre reform period compare than post reform period. In this period also the

performance of Gujarat and Tamil Nadu is impressive as the CARG of yield is

exceeding than that of what is noticed for the country as a whole. The States Uttar

Pradesh, Gujarat, Bihar and Maharashtra have declining CARG in the post reform

period.

In both initial and end period, the share area under sugarcane cultivation of

Visakhapatnam district, to that of state in relative terms is maximum. In fact this

share has increased during the period under reference. The value of C.V. of

different districts does not reveal wide fluctuations in area. Considering forty

years, the trend growth of output of sugarcane does not indicate an impressive

performance both at the State and for majority of districts. Among the major

sugarcane growing districts, the CARG in respect output Medak district has

registered highest growth, and C.V value is also maximum for Medak indicating

high growth and wide fluctuation during the period under reference.

Visakhapatnam district, the CARG is positive, the C.V value does not reveal much

fluctuations. From the values of CARG, it can be concluded that yield of

sugarcane in major sugarcane growing districts and for the State is more or less

stagnant, with little fluctuations.

145

References:

1. Fao stat citation 2009

2. Government of India (2010) ‘Economic Survey 2009-10’, New Delhi.

3. Jain .com

4. Department of economic analysis and research- NABARD, Mumbai-2010.

5. Http://www.ikisan.com/links/ap_sugarcane

6. Ministry of Agriculture India, New Delhi.

7. Directorate of Economics and statistics, Andhra Pradesh.

8. Center for monetary and Indian Economy (CMIE)

9. Ministry of Agriculture Andhra Pradesh, Hyderabad.

10. Journal of Sugar

chapter - iv sugarcane cultivation in...

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