Evaluate the primary factors contributing to regional disparities in the sugar industry between North India and Peninsular India. What measures can be undertaken to reduce the surplus production?

Sugar industry is a major source of income for several sugarcane producing farmers.

Farmers are faced FRP (Fair and Remunerative Price) for their produce.

Regional disparities are seen in the sugar industry between North and Peninsular India - also called 'Two Indias' by economic survey.

Factors contributing to regional disparities:

Factors contributing to regional disparities:-

Less available capacity for processing sugar in north.

Due to FRP and other government initiatives such as biofuelled production this has led to surplus sugar production leading to :-

Measures that can undertaken to reduce the surplus production ':-

i) Crop diversification - incentive to grow other crops (eg) Ryther Bandhu scheme of Andhra Pradesh.

ii) Increased capacities of biofuelled producers.

iii) Minimum export price to disincentivise overproduction.

iv) Rational FRP - based on market mechanism.

v) Technological upgradation of sugar industry

vi) Use of sugarcane molasses to generate additional income. (eg) Fermentable plates

vii) Reduction in demand - health and lifestyle changes - reducing processed sugar.