Index

Sl. Contents Page No.

No.
Foreword I
Acknowledgement II
1. Introduction 1–2
2. Objective and Methodology 3–4
Objective 3
Methodology 3–4
3. Sugar Cane Cultivation and Govt. Support Price 5 – 13
Sugarcane Cultivation 5
Sugarcane Price Policy 5
4. Overview of Khandsari Sugar & Jaggery (Gur) Manufacturing Units in 14 – 24
India
Number of Khandsari Sugar/Jaggery(Gur) Units and Sugar Production in India 14
Average Recovery of Sugar/Jaggery (Gur) from Sugarcane 15
Level of Technology 15 – 16
Product Range 17
Quality of products 18
Packaging & Marketing 19 – 20
5. Discussions with Stake Holders 25 – 41
Uttar Pradesh 25 – 35
Maharashtra 35 – 37
Madhya Pradesh 38 – 39
Karnataka 40
Ministry of Agriculture & Farmers Welfare 41
Ministry of Consumer Affairs, Food & Public Distribution, New Delhi 41
6. Model Test Lab For Testing of Khandsari Sugar and Jaggery (Gur) 42 – 46
Products
Land Building 42
Technical Requirements 42 – 43
Quality related Requirements 44 – 46
Cost of setting of Laboratory 46
7. Model Project Report on Khandsari Sugar with Steam Generating Plant 47 – 66
8. Model Project Report on Jaggery (Gur) 67 – 80
9. Government Support 81 – 85
Scheme for Financial Support 81
Scheme for Technology Upgradation Support 82 – 83
Scheme for Marketing Assistance 83 – 84
Scheme for Infrastructure Development Assistance 84 – 85
10. Way Forward- Areas of Concern and Suggested Interventions for 86 – 91
Khandsari Sugar & Jaggery (Gur) Industry
11. Tables
Table A - Sugarcane Harvested area 7
Table B - Sugarcane Yield 8
Table C - Sugarcane Production 9
Table D - Statement of Sugarcane Area of Cultivation for 2016-17 & 2017-18 10
in U.P.
Table E - Area of Sugarcane Grown in Madhya Pradesh, Year 2016-17 11
Table F - Sugarcane Area (hectare) and Crushing (LMT) in the Maharashtra 12
Table G - Availability of Sugarcane Area, Average Production, Production, 13
Cane Crushing, Sugar Production, Sugarcane Utilization of Uttar Pradesh.
Table H - Status of Khandsari Units in Uttar Pradesh 21
 Table I - No. of Mills in operation, Cane Crushed, Sugar Recovery %, Sugar 22
Production, State Wise
Table J - Sector-wise Sugarcane Crushing, Sugar Production & Sugar 23
Recovery
Table K - Test results of samples collected from Khandsari unit of Distt. 24
Lakhimpur Kheeri
12. Annexure
Annexure – I List of Accredited Food Testing Laboratories 92 – 96
Annexure – II Lab Equipment Suppliers 97
Annexure – III Availability of Technology of Sugarcane Products in India 98 – 99
Annexure – IV State Khandsari License Policy of Uttar Pradesh 100 – 105
Annexure – V State Khandsari License Policy of Madhya Pradesh 106 – 111
Annexure – VI State Khandsari License Policy of Maharashtra 112 – 113
Annexure – VII Photographs of Study Visit of Khandsari units and Meetings 114 – 124
with Stakeholders
 ACKNowLEDGErv[ENT

We wish to express our sincere thanks and gratitude to Shri U. C. Shukla, Director,

MSME-Development Institute, Kanpur for his ever energizing motivation, guidance and

supports in the preparation of "A Study Report on Khandsari Sugar / Jaggery (Cur)".

We convey our thanks to the Officers of office of Sugar Commissioners, u.P.`, M.P. &

Maharashtra and owners of prominent Khandsari Sugar / Jaggery (Gur) units, Members of

Khandsari Sugar / Jaggery (Cur) Industry Associations of Uttar Pradesh, Madhya Pradesh &

Maharashtra, Consultants and Officers of Ministry of Agriculture & Farmers Welfare and Ministry

of Consumer Affairs, Food & Public Distribution, New Delhi for providing valuable data /

information pertaining to sugarcane cultivation, sugar production, latest manufacturing

techniques and sugar price policy of India required in preparation of this report. We hope this

report will be quite useful for the growth of Khandsari Sugar / Jaggery (Gur) sector and in framing

various promotional policies by the Govt. of India and for overall growth of the sector.

We also appreciate S/Shri P. K. Shukla, P. S. Bajpai, Krishna Kumar and Mishri Lal,

Stenographers of MSME- Development Institute, Kanpur who have put his best efforts in nicely

shaping and typing of this report.

/
+`::.-,:+.a
8 SYad
Dy. Director (Chem.) Asstt. Director Gr.I (Mech) Asstt. Director (Food)

8 (N#k#,
Asstt. Director (Chem.) Asstt. Director (El)
 1

1. Introduction

Additional Secretary & Development Commissioner (MSME), Ministry of Micro,

Small & Medium Enterprises, Govt. of India, New Delhi, has assigned MSME-
Development Institute, Kanpur to prepare a detailed ‗Techno-Economic Feasibility Report
on Khandsari Sugar & Jaggery (Gur)‘. He was of the view that, this report must be
prepared by a team of officers from Chemical, Food, Mechanical and Economic
Investigation Divisions, so as to have holistic understanding of Khandsari and Jaggery
Sector and capture all the important factors relating to the Sector in the report. Accordingly,
Director of the Institute constituted a Team of Officers of MSME-Development Institute,
Kanpur. The team comprised of-

I. Shri L.B.S Yadav, Deputy Director (Chemical)

II. Shri R.P. Chowdhary, Asstt. Director Gr I (Mechanical)
III. Shri P.K. Srivastava, Asstt. Director Gr II (Food)
IV. Shri S.K. Agnihotri, Asstt. Director Gr II (Chemical)
V. Shri Neeraj Kumar, Asstt. Director Gr II (Economic Investigation)

Sugar and Jaggery (Gur) are the most important sweetening agents and are
primarily extracted from sugarcane across the world. India is 2nd largest producer sugar in
the world whereas it is the largest producer of Jaggery and Jaggery products and
consumer in the world. India is 2nd largest producer of Sugarcane. The production of
sugarcane is to the tune of 350 million tones. Sugarcane based industry have a very
important role in strengthen the linkages to agriculture. Sugarcane based industry
provides an excellent potential in promoting the integrated development of sugarcane
industry and in transforming the rural economy as dynamic and buoyant industrialized
economy. In India Sugar and Jaggery (Gur) is primarily produced from sugarcane.

Earlier, Khandsari sugar & Jaggery (Gur) were used to be manufactured from cane
juice with traditional technology in India. It uses products available at villages and village
technicians, who have perfected process of sugar manufacturing over centuries. The
village technology uses in-house resources available in village itself, including inputs and
knowledge. Villagers have known the science of producing Khandsari Sugar from purified
cane juice since time immemorial.

It is estimated that there are approximately 50 Khandsari Sugar manufacturing units

and approx. 1,00,000 Jaggery manufacturing units in the country. These units are MSMEs.
The Khandsari Sugar sector is shrinking where as Jaggery sector is expanding in the
country.
 2

Now a days, two processes are mainly being followed in India. One is old indigenous
method and the other is modern sulphitation process. A typical Khandsari & Jaggery
industry have 1-20 furnaces. The size of the Khandsari sugar units varies between 50-
1000- tons of cane crushing capacity per day (TCD), whereas for Jaggery it ranges 1-15
TCD. The recovery of sugar ranges from 7 % (traditional process) to 9 % (modern process)
whereas recovery for jaggery it is 9 % (traditional process) to 13 % (modern process) of
cane crushed. Although the Jaggery industry has grown several folds over the decades,
there has been no organized effort to improve its performance, efficiency and recovery.

The reasons for continuation of old technology include: (i) disorganized Micro and
Small scale sector, (ii) Govt. Policy constraints, (iii) lack of education/ technical knowledge
of village entrepreneurs, and (iv) lack of willingness and affordability to adopt new technical
inputs.
The use of traditional technologies, low market price for Sugar/Gur in comparison to
Minimum Support Price(MSP)/ Fair Remunerative Price (FRP) for sugarcane are
threatening closure of several Khandsari & Jaggery units which will leads to larger
unemployment problems in rural areas of Khandsari belt.
 3

2. Objective and Methodology

Objective: The main objective of the preparation of report-

I. To have data and details of present status of MSMEs in the field of Khandsari
Sugar & Jaggery (Gur) manufacturing capturing wherein issues relating to the Policy,
Technology, Finance, Testing, Product Development, Packaging, Skilling & Marketing and
issues relating to Sugarcane Growers etc.
II. To analyze the data and details to arrive at road map for the upliftment of MSMEs
and Sugarcane Growers.
III. To prepare Model Project Reports for setting-up of Testing Lab, Khandsari Unit
and Jaggery (Gur) Unit to the State agencies, MSMEs and prospective entrepreneurs.

Methodology: The following methodology has been adopted:

1. To collect the data, details and other relevant information, the above team visited
important clusters of Khandsari and Jaggery in Uttar Pradesh, Maharashtra and Madhya
Pradesh and met Govt. Officers, Industry Associations, MSME Entrepreneurs and Sugar
Cane Growers. The team also visited Ministry of Agriculture & Farmers Welfare and
Ministry of Consumer Affairs, Food & Public Distribution, New Delhi and had discussions at
various levels.
2. The Govt. Departments, Institutions and Associations which the team visited and
contacted are-
A. Uttar Pradesh- Principal Secretary Khadi & Village Industry, District Industry and
Enterprise Promotion Centres (DIEPCs), National Sugar Institute, Kanpur, Regional Food,
Research and Analysis Centre, Lucknow, (RFRAC), Office of Sugar Commissioner,
Lucknow, Office of Dy. Sugar Commissioner, Meerut & Lucknow, Office of Assistant Sugar
Commissioner, Lucknow, Sitapur, Moradabad and Bijnore and U.P. Gur Evam Khandsari
Manufacturing Association, Amroha & Khandsari and Gur Utpadak Sangh, Nazibabad,
Bijnore.
B. Madhya Pradesh- District Trade & Industry Centre (DTIC), Narsinghpur, Office of
Sugar Commissioner, Bhopal, Office of Commissioner of MSME, Bhopal and Assistant
Sugar Commissioner, Narsinghpur, MSME-DI, Indore and Khandsari and Gur
Manufacturers Association, Narsinghpur and Betul Districts

C. Maharashtra- District Industry Centre (DIC), Pune, Office of Sugar

Commissioner, Pune and sugarcane & Jaggery (Gur) Research Station, Kolhapur, MSME-
DI. Mumbai and Gur Manufacturers Association, District Sangli, Maharastra.
 4

Visits of Clusters of Khandsari Sugar/ Jaggery (Gur):

To have the idea about ground level realities, the team visited units situated in
different parts of Uttar Pradesh like Central, Eastern, Western & Tarai Region of Uttar
Pradesh, Taluka Karad Distt Satara, Distt, Sangli and in Distt Kolhapur in Maharashtra and
Distt Narsinghpr and Betul in Madhya Pradesh.
3. Data collection i.e. area of cultivation of Sugarcane, Working Khandsari Units and
their production capacity, units set-up under PMEGP and other financial scheme and rules
& regulation pertaining to Khandsari Industry.
4. Meeting with sugarcane growers, to acquaint with the problems faced by them.
5. To collect quality specifications for the manufacturing of Khandsari/Jaggery
(Gur)/Raab/Bura from the concerned Departments.
6. To collect the technical information like present manufacturing process, plant &
machinery suppliers, value of plant & machinery, technical details mentioned in Khandsari
Licence Order, 1967 like type of furnace, roller size, etc. list of testing labs situated in
different parts of the country and latest technology available etc.
7. To collect economic details relating to Khandsari sugar and Gur manufacturing
like financial projections, working capital. Working capital requirement etc.
8. Taxes applicable on Khandsari Industry/Gur Sector.- Mandi Samiti Shulk & other
charges.
9. Incentives provided by Central & State Government to promote Khandsari sugar
and Gur manufacturing units.
10.Study of Data and Reports on Khandsari sugar and Gur manufacturing available
on internet.
11.Discussion with sector experts/ consultants.
 5

3. Sugar Cane Cultivation and Govt. Support Price

A) Sugarcane Cultivation:

Sugarcane is an important crop in India. There are approx. 35 Million farmers

growing sugarcane and another approx. 50 million depends upon employment generated
by the sugar Mills, Khandsari units, Jaggery (Gur) and other related industries using sugar
cane. In India states like U.P, Maharashtra, Madhya Pradesh, Gujrat, Tamil Nadu,
Karnataka and Bihar growing sugarcane, play important role in the economy.

Sugar cane in India is grown in two distinct agro-climatic regions:

1. Tropical- Maharastra, Karnataka, Gujrat and Tamil Nadu

2. Sub Tropical- U.P, Madhya Pradesh, Haryana, Punjab and Bihar

Amongst the states Uttar Pradesh ranks first with 2198000 hectares of the total
Sugarcane harvested area followed by Maharastra 902000 hectares. The state wise details
are available at Table A.

The yield of Sugarcane varies area wise depending upon soil texture, availability of
irrigation resources, climatic conditions, variety of sugar cane seeds etc. The state wise
per hectare sugarcane yield details are available at Table B.

Setting up of Sugarcane breeding centers at different places in the country and

development of high yield sugarcane varieties suitable for specific region resulted in higher
production of sugarcane in our country. Central and State Govts. have many promotional
policies both for Sugar Mills and farmers. U.P. grew more than 40% of total sugarcane
produced in the country in the recent past. The state wise total sugarcane production
details are available at Table C.

The District wise sugarcane cultivation details for U.P, M.P. and Maharashtra may be
referred at Table D, Table E and Table F respectively.

Availability of Sugarcane area, average production, Cane Crushing, Sugar

Production, Sugarcane utilization etc. of Uttar Pradesh is given at Table G.

B) Sugarcane Price Policy:

i) Fair and Remunerative Price (FRP)-

With the amendment of the Sugarcane (Control) Order, 1966, of Govt. of India, the
concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‗Fair and
Remunerative Price (FRP) of sugarcane. The cane price announced by the Central
 6

Government is decided on the basis of the recommendations of the Commission for

Agricultural Costs and Prices (CACP) after consulting the State Governments and
associations of sugar industry. In amended provisions of the Sugarcane (Control) Order,
1966, FRP of sugarcane is decided on the basis of following factors:-

a) Cost of production of sugarcane;

b) Return to the growers from alternative crops and the general trend of prices
of agricultural commodities;
c) Availability of sugar to consumers at a fair price;
d) Price at which sugar produced from sugarcane is sold by sugar producers;
e) Recovery of sugar from sugarcane;
f) The realization made from sale of by-products viz. molasses, bagasse and
press mud or their imputed value (inserted vide notification dated 29.12. 2008);
g) Reasonable margins for the growers of sugarcane on account of risk and profits.

FRP for 2017-18 sugar season has been fixed at Rs. 255 per quintal linked to a basic
recovery of 9.5% subject to a premium of Rs.2.68 per qtl for every 0.1 percentage point
increase above that level. The FRP of sugarcane payable for each sugar season from
2009-10 to 2017-18 is tabulated below:-

Sugar Season FRP (Rs. per quintal) Basic Recovery Level

2009-10 129.84 9.5%

2010-11 139.12 9.5%

2011-12 145.00 9.5%

2012-13 170.00 9.5%

2013-14 210.00 9.5%

2014-15 220.00 9.5%

2015-16 230.00 9.5%

2016-17 230.00 9.5%

2017-18 255.00 9.5%

ii) State Advised Price (SAP) -

Due to differences in cost of production, productivity levels and also requests from
farmers' groups, some states declare state specific sugarcane prices called State Advised
Prices (SAP), usually higher than the FRP. Since early 1970s, State Advised Price (SAP)
came into existence in States like UP, Tamil Nadu, Punjab and Haryana etc.
 7

Sugarcane Harvested area: Table A

(in 000, hect..)

Sl. State 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17* 2017-18*
No.
1. Andhra Pradesh 264 247 196 158 192 204 196 153 139 122 103 97
2. Assam 27 26 28 27 30 26 28 29 30 30 32 30
3. Bihar 130 109 112 116 248 218 250 258 254 244 242 247
4. Chhattisgarh 7 11 10 12 @ 9 13 8 19 36 21 31
5. Gujarat 214 211 221 154 190 202 176 174 208 157 169 183
6. Haryana 140 140 90 74 85 95 101 102 97 93 102 114
7. Jharkhand 4 6 5 7 7 7 7 6 7 10 7 7
8. Karnataka 326 306 281 337 423 430 425 420 480 450 354 400
9. Kerala 5 2 2 3 3 3 2 2 2 1 1 1
10. Madhya Pradesh 64 75 71 62 65 69 59 73 111 103 92 83
11. Maharashtra 1049 1093 768 756 965 1022 933 937 1030 987 633 902
12. Orissa 20 20 11 8 13 15 15 14 10 9 13 11
13. Punjab 99 110 81 60 70 80 83 89 94 90 88 95
14. Rajasthan 11 10 7 6 5 6 5 5 6 6 7 7
15. Tamil Nadu 391 354 309 293 316 346 347 313 263 252 207 118
16. Telangana @ @ @ @ @ @ @ 39 38 35 26 25
17. Uttar Pradesh 2247 2179 2084 1977 2125 2162 2212 2228 2141 2169 2160 2198
18. Uttrakhand 121 124 107 96 107 108 110 104 102 97 93 86
19. West Bengal 17 17 18 14 15 16 16 17 18 17 21 16
20. Others 15 15 14 15 27 20 20 22 18 19 18 18
All India 5151 5055 4415 4175 4886 5038 4998 4993 5067 4927 4389 4669
 * 4th Advance Estimate for Sugar Season 2016-17 & 1st Advance Estimate for Sugar season 2017-18 issued by Department of Agriculture & Farmers welfare
 @ Data of State Telengana included in Andhra Pradesh.
 8

Sugarcane Yield: Table B

(Ton per Hect.)

Sl. State 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016- 2017-18*
No. 17*
1. Andhra Pradesh 82.2 78.5 74.1 77.9 81.8 79.4 78.5 71.8 76.7 76.3 76.7
2. Assam 37.7 39.3 39.2 35.8 38.2 36.7 37.1 36.6 34.6 36.2 36.6
3. Bihar 35.4 44.3 43.4 51.5 51.8 51.0 49.9 55.3 51.8 63.7 57.8
4. Chhattisgarh 2.5 2.5 2.4 @ 2.7 2.8 2.8 2.6 1.9 2.3 2.5
5. Gujarat 72.0 70.2 80.5 72.4 63.1 72.1 72.1 68.9 70.8 70.7 69.3
6. Haryana 63.3 57.0 72.1 71.1 73.3 73.6 73.5 73.9 72.0 84.7 76.6
7. Jharkhand 25.0 69.8 63.9 65.3 65.3 66.0 77.2 67.1 70.9 73.3 73.3
8. Karnataka 85.8 83.0 90.3 93.8 90.3 84.1 90.3 91.2 84.1 66.5 76.0
9. Kerala 109.0 138.0 95.0 90.3 87.7 83.0 110.5 94.5 138.0 140.0 50.0
10. Madhya Pradesh 42.4 41.9 40.9 41.0 38.8 44.8 43.5 41.1 51.3 51.4 44.2
11. Maharashtra 80.9 79.0 84.9 84.9 84.9 74.6 82.1 82.2 74.7 80.0 75.0
12. Orissa 54.8 58.7 61.3 69.5 59.0 63.5 66.9 72.3 64.1 62.7 66.4
13. Punjab 60.8 57.7 61.7 59.6 70.7 71.3 75.0 74.9 73.4 82.4 81.3
14. Rajasthan 59.4 55.4 57.3 59.6 75.2 80.4 72.6 68.2 88.5 69.9 73.4
15. Tamil Nadu 107.5 106.2 101.5 108.4 111.5 97.7 103.7 106.8 101.2 83.2 104.6
16. Telangana @ @ @ @ @ @ 86.6 88.0 68.7 82.9 69.8
17. Uttar Pradesh 57.2 52.3 59.33 56.7 59.6 59.9 60.5 62.1 67.0 67.0 72.7
18. Uttrakhand 62.0 52.2 60.9 60.7 58.4 61.7 57.1 60.4 60.7 69.6 69.5
19. West Bengal 74.8 91.0 71.5 75.6 105.1 101.1 114.4 117.0 122.1 98.9 95.0
20. Others 45.3 40.3 40.4 35.5 51.1 51.4 48.3 59.0 48.7 45.5 47.4
All India 68.9 64.6 70.0 70.1 71.1 68.3 70.5 71.5 70.7 69.9 72.3

 * 4th Advance Estimate for Sugar Season 2016-17 & 1st Advance Estimate for Sugar season 2017-18 issued by Department of Agriculture & Farmers welfare.
 @ Data of State Telengana included in Andhra Pradesh.
 9

Sugarcane Production: Table C

(In 000’ Tonnes)

Sl. State 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17* 2017-18*
No.
1. Andhra Pradesh 20296 15380 11708 14964 16686 15568 12009 9987 9353 7854 7439
2. Assam 980 1100 1059 1075 994 1028 1075 1099 1038 1159 1099
3. Bihar 3855 4960 5033 12764 11289 12741 12882 14034 12649 15416 14269
4. Chhattisgarh 28 25 29 @ 24 37 22 49 68 49 78
5. Gujarat 15190 15510 12400 13760 12750 12690 12550 14330 11120 11950 12688
6. Haryana 8860 5130 5335 6042 6959 7437 7499 7169 6692 8640 8729
7. Jharkhand 150 349 447 457 457 462 463 470 709 513 513
8. Karnataka 26240 23328 30443 39657 38808 35732 37905 43776 37834 23541 30400
9. Kerala 218 276 285 271 263 166 221 149 138 140 50
10. Madhya Pradesh 3180 2975 2535 2667 2677 2642 3173 4567 5281 4730 3670
11. Maharashtra 88437 60648 64159 81896 86733 69648 76901 84699 73680 50644 67624
12. Orissa 1096 646 490 903 885 952 937 723 577 815 730
13. Punjab 6690 4670 3700 4170 5653 5919 6675 7039 6607 7252 7721
14. Rajasthan 594 388 344 368 451 402 363 409 531 489 514
15. Tamil Nadu 38071 32804 29746 34252 38576 33919 32454 28093 25494 17218 12348
16. Telangana @ @ @ @ @ @ 3376 3343 2405 2155 1745
17. Uttar Pradesh 124665 109048 117140 120545 128819 132427 134689 133061 145385 144783 159722
18. Uttrakhand 7686 5590 5842 6498 6311 6785 5940 6165 5886 6477 5981
19. West Bengal 1272 1638 1001 1134 1681 1617 1945 2106 2075 2076 1520
20. Others 680 564 606 959 1021 1027 1063 1062 926 819 854
All India 348188 285029 292302 342382 361037 341198 352142 362330 348448 306720 337694

 4th Advance Estimate for Sugar Season 2016-17 & 1st Advance Estimate for Sugar season 2017-18 issued by Department of Agriculture & Farmers welfare.
 @ Data of State Telengana included in Andhra Pradesh.
 10

Statement of Sugarcane Area of Cultivation for 2016-17 & 2017-18 in U.P.: Table D

S.No. Name of the District Sugarcane Area Sugarcane Area Average Growth(%)
2017-18 2016-17 for year 2017-18
1. Saharanpur 91984 75466 21.89
2. Muzaffarnagar 131954 126872 4.01
3. Shamli 53868 51039 5.54
4. Meerut 120624 108815 10.85
5. Ghaziabad 18525 17094 8.37
6. Bulandsahar 54747 45941 19.17
7. Bagpat 71449 70515 1.32
8. Hapur 24724 20864 18.50
9. Bijnore 212687 210269 1.15
10. Rampur 30026 26709 12.42
11. Moradabad 57926 54489 6.31
12. Amroha 69195 65972 4.89
13. Sambhal 38383 32818 16.96
14. Aligarh 11920 10941 8.95
15. Mathura 389 302 28.81
16. Bareilly 93637 78646 19.06
17. Pilibhit 87787 69987 25.43
18. Shahjahanpur 81990 62829 30.50
19. Budaun 22969 20652 11.22
20. Etah (Kashiramnagar) 5011 4201 19.28
21. Farrukhabad 9979 9925 0.54
22. Kanpur 7254 6615 9.66
23. Raebareli 2775 2360 17.58
24. Sitapur 170138 145384 17.03
25. Lakhimpur Kheri 288567 258356 11.69
26. Hardoi 48972 37505 30.09
27. Barabanki 9352 7452 25.50
28. Faizabad 54817 49599 10.52
29. Sultanpur 8713 7940 9.74
30. Jaunpur 2887 2452 17.74
31. Ghazipur 3893 3609 7.87
32. Varanasi 2828 2815 0.46
33. Bahraich 68358 60135 13.67
34. Gonda 70238 63811 10.07
35. Balrampur 87307 76071 14.77
36. Basti 52962 48897 8.31
37. Siddharthnagar 1122 1036 8.30
38. Gorakhpur 2439 2005 21.65
39. Maharajganj 16385 15255 7.41
40. Kushinagar 76387 67717 12.80
41. Deoria 7529 6962 8.14
42. Mau 9564 8406 13.78
43. Azamgarh 13591 12120 12.14
44. Balia 3372 3111 8.39
Western U.P. 567875 516606 9.92
Central U.P. 1066512 950216 12.24
Eastern U.P. 664657 587138 13.20
Total 2299044 2053960 11.93
 11

Area of Sugarcane Grown in Madhya Pradesh, Year 2016-17: Table No E

S.No. District’s Sugarcane

1. Jabalpur 2824
2. Katni 43
3. Balaghat 640
4. Chhindwara 5125
5. Seoni 480
6. Mandla 1300
7. Dindori 0
8. Narsinghpur 48066
9. Sagar 239
10. Damoh 129
11. Panna 19
12. Tikamgarh 2089
13. Chattarpur 354
14. Rewa 13
15. Sidhi 0
16. Singroli 5
17. Satna 0
18. Shahdol 22
19. Umaria 0
20. Anuppur 6
21. Indore 111
22. Dhar 1013
23. Jhabua 18
24. Alirajpur 13
25. Khargone 1000
26. Barwani 2543
27. Khandwa 157
28. Burhanpur 5165
29. Ujjain 4
30. Mandsaur 5
31. Neemuch 0
32. Ratlam 6
33. Dewas 24
34. Shajapur 0
35. Aagar 0
36. Morena 403
37. Sheopurkala 2
38. Bhind 9
39. Gwalior 629
40. Shivpuri 284
41. Guna 168
42. Ashoknagar 51
43. Datia 4597
44. Bhopal 1588
45. Sehore 481
46. Raisen 282
47. Vidisha 92
48. Rajgarh 0
49. Hoshangabad 4827
50. Harda 124
51. Betul 6624
Non-Reported 0
Total 91574
 12

Sugarcane Area (hectare) and Crushing (LMT) in the Maharashtra: Table F

Sl. District Crushing State Season 2012-13 Season 2013-14 Season 2014-15 Season 2015-16 Season 2016-17 Season 2017-18 Season 2018-19
No Capacity average (Estimated)
. Tons/day Cultivated Crushing Cultivated Crushing Cultivated Crushing Cultivated Crushing Cultivated Crushing Cultivated Crushing Cultivated Crushing
Area (ha) (LMT) Area (ha) (LMT) Area (ha) (LMT) Area (ha) (LMT) Area (ha) (LMT) Area (ha) (LMT) Area (ha) (LMT)
1. Ratnagiri 95 44
2. Sindhudurg 1350 1350 1408 1098
Konkan Region 1350 1350 1503 1142 0.00 0.00 0.00
3. Kolhapur 100950 143300 142000 110.65 141768 115.8 144979 135.4 145286 146.77 132631 101.24 143905 133.09 `151530 134.35
4. Sangli 50750 68500 60700 63.73 70300 72.7 74497 77.4 83966 80.00 72358 51.18 80176 80.31 81369 89.92
5. Satara 48700 68500 59800 55.68 75782 62.3 69999 75.8 65504 77.97 50329 54.33 80644 88.66 85758 70.25
6. Pune 68000 124700 137700 93 108625 94.8 127830 119.7 118430 99.43 95903 51.27 113140 114.74 121175 83.50
7. Solapur 122800 164800 144200 126.42 144781 102.1 205514 191.3 183147 118.11 64744 35.96 100505 169.26 148016 162.49
Pune Region 391200 569800 544400 449.48 541256 447.75 622819 599.59 596333 522.26 415965 293.98 518370 586.06 587848 540.51
8. Ahmednagar 75000 112300 115500 88 99305 83.2 122000 119.8 112415 92.89 60972 35.06 104404 135.11 133381 85.60
9. Nasik 21250 22800 24600 14.11 21612 9.7 22000 10.2 18958 11.62 11216 4.43 11865 11.63 14936 10.11
10. Dhule 2500 4700 5300 3317 2060 0.00 4508
11. Nandurbar 8750 8100 10800 5.16 10000 8.9 12164 10.3 14123 10.68 10952 6.71 17387 11.18 82.55 8.50
12. Jalgaon 13000 11000 11000 3.99 7683 5.7 12355 6.3 9974 5.44 9163 2.44 9330 3.86 9718 5.30
Nasik Region 120500 158900 167200 111.26 138600 107.55 171836 146.59 157530 120.63 96811 48.64 142986 161.78 166290 109.51
13. Aurangabad 18200 14700 14800 5.69 15373 5.5 13902 14.8 15306 10.19 14644 3.03 21325 16.69 13909 15.30
14. Jalna 14000 15000 12800 10.76 11083 7.1 21110 16.8 26096 12.61 16430 5.86 23792 20.96 9407 20.22
15. Beed 28750 38700 51400 18.69 27299 15.7 37549 26.1 36073 12.37 12292 3.78 36050 34.45 28463 35.90
16. Parbhani 18250 24900 17000 13.57 25567 11.1 32000 18.2 28481 10.71 9000 1.86 25000 17.75 75571 50.60
17. Hingoli 7500 14700 9000 9.01 18037 8.2 17146 10.4 15191 8.46 5000 2.47 9500 11.25 15470 11.29
18. Nanded 18250 21400 12800 8.11 28057 10.5 23529 13.2 18792 9.33 14501 3.68 23000 13.83 18188 15.60
19. Osmanabad 41000 30300 52200 26.35 43635 24.0 39817 40.8 22687 14.16 12000 1.29 35000 38.76 67613 51.20
20. Latur 26500 33800 46400 33.62 61479 29.0 46397 33.6 41478 14.74 9000 1.34 40000 35.70 67637 52.30
Aurangabad Region 172450 193500 216400 125.8 230530 111.14 231450 173.91 204104 92.57 92867 23.31 213667 189.37 296258 252.41
21. Buldhana 3300 100 100 277 342 535 257
22. Akola 100 0 97 100 65 `45
23. Washim 100 0 214 209 256 154
24. Amrawati 500 640 300 1.08 816 453 321 430 121
25. Yavatmal 10000 6700 4200 4.35 7720 3.2 8663 4.9 13579 2.76 12493 2.43 14127 5.53 10234 2.50
Aurangabad Region 13800 7640 4600 5.43 8536 3.23 9704 4.86 14551 2.76 13779 2.43 14704 5.53 10234 2.50
26. Wardha 1250 2920 2100 2.02 3418 1.6 3099 1.6 3079 1.71 3017 1.11 2167 0.91 2916 1.31
27. Nagpur 3750 2500 300 2.95 3094 2.5 4245 2.1 4362 2.79 4599 2.08 4268 5.53 4689 2.34
28. Bhandara 1850 5900 2900 2.68 8065 2.6 6680 1.8 4361 1.12 4210 0.92 3574 1.30 3508 1.75
29. Gondiya 1400 200 2491 1530 955 667 1128
30. Chandrapur 0 328 154 102 50 26
31. Gadchiroli 0 181 181 68 0
Nagpur Region 6850 12720 5500 7.65 17577 6.62 15889 5.46 12927 5.62 12543 4.11 11163 7.74 11113 5.41
State Total 704800 942560 938100 700 936499 676 1053048 930 986795 743.85 633468 372.47 902032 950.49 1071744 910.34
 13

Availability of Sugarcane Area, Average Production, Production, Cane Crushing, Sugar Production, Sugarcane
Utilization etc. of Uttar Pradesh: Table G

S.L. Details Units 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 1014-15 2015-16 2016-127 2017-18
No.
1 2 3 4 5 6 7 8 9 10 11 12 13
1. Sugarcane Lakh Hec. 21.40 17.88 21.01 22.51 24.24 23.60 21.32 20.52 20.54 22.99
Area
2. Average Ton/Hec. 51.77 58.80 56.34 59.35 61.63 62.74 65.15 66.47 72.38 74.25*
Production
3. Sugarcane Lakh Ton 1107.82 1051.26 1183.98 1335.72 1493.98 1480.93 1389.02 1364.12 1486.57 1707.08*
Production
4. Sugarcane Lakh Ton 454.82 567.34 643.81 768.55 815.06 701.17 744.54 645.66 827.16 1017.88*
crushing
5. Sugar Lakh Ton 40.64 51.79 58.87 69.74 74.85 64.95 71.01 68.55 87.73 110.13*
Production
6. (%) 8.94 9.13 9.14 9.07 9.18 9.26 9.54 10.62 10.61 10.82*
7. Sugarcane (%) 41.05 53.97 54.38 57.54 54.56 47.35 53.60 47.33 55.64 59.63*
utilization %
8. Day to day Lakh 7.72 7.72 7.67 7.68 7.61 7.51 7.46 7.51 7.50 7.65
cane crushing T.C.D.
capacity
9. No. of total 132 128 125 124 122 119 118 117 116 119
Mill
(a) Corporation No. 14 11 0 0 0 1 1 1 1 1
(b) Sahkari No. 25 25 23 23 23 23 23 24 24 24
(c) Private No. 93 92 102 101 99 95 94 92 91 94
10. Price of cane
(S.A.P.*)
i. Early Rs./Quintal 145 170 210 250 290 290 290 290 315 325
maturing
ii. Common Rs./Quintal 140 165 205 240 280 280 280 280 305 315
variety
iii. Un Rs./Quintal 137.50 162.50 200 235 275 275 275 275 300 310
suitable

SAP-State Advised Price

Source: Office of Sugarcane Commissioner, Lucknow
 14

4. Overview of Khandsari Sugar & Jaggery (Gur) Manufacturing

Units in India
Khandsari Sugar Units are situated in the states of Uttar Pradesh, Madhya Pradesh,
Maharashtra, Karnataka and Gujrat. The brief details of number of units, average recovery of
sugar/jaggery from sugarcane, level of technology, product range, quality of products,
packaging and marketing are as follows.

A. Number of Khandsari Sugar/Jaggery(Gur) Units and Sugar Production

in India:

The Licensed Khandsari units manufacturing Sugar /Jaggery (Gur) are largest in Uttar
Pradesh. These are 1057 units and out of which only 157 are functional. Members of
Khandsari Associations of U.P., Maharashtra and M.P. in discussion informed that in India
Khandsari units manufacturing Sugar are very few and as per their data such units are only
40 to 50. The data for Jaggery (Gur) manufacturing unit is not available with associations or
the state agencies as a large no. of units are in unorganized sector and also unregistered
too. It is estimated that there are approx. 1,00,000 jaggery (Gur) units in the country. The
Details of Khandsari Licensed units in the state of U.P. are given at Table H.

Sugar mills are widely spread out in about 10 states. The sugar is mainly produced by
the network of sugar mills and Khandsari sugar manufacturing units spread throughout the
country.

Sugar industry is an important agro-based industry that impacts rural livelihood of

about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar /
Khandsari Sugar Mills. Employment is also generated in various ancillary activities relating
to transport, trade servicing of machinery and supply of agriculture inputs. India is the
second largest producer of sugar in the world after Brazil and is also the largest consumer.
Today Indian sugar industry‘s annual output is worth approximately Rs.80,000 crores.

There are 735 installed sugar factories in the country as on 31.01.2018, with sufficient
crushing capacity to produce around 340 lakh MT of sugar. The capacity is roughly
distributed equally between private sector units and co-operative sector units. The capacity
of sugar mills is, by and large, in the range of 2500 TCD-5000 TCD bracket but increasingly
expanding and going even beyond 10000 TCD. Two standalone refineries have also been
established in the country in the coastal belt of Gujarat and West Bengal which produce
refined sugar mainly from imported raw sugar as also from indigenously produced raw
sugar.
The data details sugar produced in the country are given at Table I.
 15

B. Average Recovery of Sugar/Jaggery (Gur) from Sugarcane:

Sugar is the major produce of sugarcane. The top three sugarcane producing states,
viz Uttar Pradesh, Maharashtra and Karnataka contributed about 80 percent of sugar
production of the country. These states have 68 percent of operating sugar mills of the
country. Even though Uttar Pradesh is the largest producer of sugarcane, its sugar
production is lower as compared to Maharashtra. This is because of sugar recovery in Uttar
Pradesh (10.87 percent) is lower than Maharashtra (11.24 percent).

Sugar recovery for other states are- Karnataka (10.61 percent), Gujarat (10.20
percent) and Telangana (10.99 percent). This shows that sugar recovery in tropical states
(Maharashtra, Andhra Pradesh, Tamil Nadu, Karnataka, Gujarat, Madhya Pradesh, Goa,
Pondicherry and Kerala) of the country is slightly higher than sub-tropical states (U.P,
Bihar, Haryana and Punjab) with exception of Tamil Nadu having sugar recovery of 8.3
percent. However, it is encouraging to observe that recovery of sugar has improved
significantly in Uttar Pradesh, Punjab, Gujarat and Haryana during last few years.

The Sugar recovery in Khandsari Sugar Manufacturing units is very low i.e. from 7.5-
9.0 % whereas the recovery of Jaggery (Gur) is from 10-13% depending upon the variety of
sugarcane, soil texture, irrigation facilities and time of Sugarcane Crushing. The Jaggery
contains 65–85% of sucrose, 10–15% of reducing sugars, 3–10% of moisture, and the
remaining is insoluble matter. The details of Recovery of sugar from sugarcane are given at
Table I & Table J.

C. Level of Technology:

i) Khandsari Sugar Industry :

India is the birthplace, where the small scale Khandsari sugar industry was born and
developed into a modern industry. The Khandsari sugar production, which was originally
confined to the State of Uttar Pradesh, is now spread all over the country. It occupies an
important place in the country's sugar economy. Around 45-50% of the total sugar cane
produced in the country is absorbed by the Khandsari industry which provides employment
to a large number of people. The manufacturing process includes cane crushing by
mechanical rollers, concentration of cane juice (through open pan boiling), crystallization,
extraction of sugar in centrifuge and sugar drying. The byproduct bagasse, is burnt in
furnace to provide heat for boiling the juice. There has not been done any organized effort to
modernize or improve the manufacturing process in the Khandsari Industries.
 16

Nowadays stream pressure boiling process for open pan technology is used
for the manufacturing of Khandsari sugar. It is highly cost effective in terms of energy
usages manpower, process efficiency etc. In this process heating medium is exhaust steam
from power turbine obtained at 1.50kg/cm2 g pressure and adjusted to 1300 C temperature.

The cane is chopped in 3-4 pieces before feeding in crushing section. The crushing
section nowadays is extended from 3-5 stages. The provision of hot water mixing with
crushed baggase has been made in the sugarcane mill in 3rd and 4th stages; it increases
the sugar recovery 1 to 2%. The clear juice from clarifier is fed to the evaporator for
converting into syrup of 56 to 600 Brix with the help of exhaust steam at 1.50kg/cm2 g and
1200 C.

The design of modern evaporators and concentrators is unique in the sense that the
residence time of sugar bearing materials is exposed to high temperature is minimal. The
fast rate of evaporation reduces the inversion of sugar. The sugar loss due to inversion is
also reduced because of boiling with steam under high pressure and temperature
conditions in place of direct hot flue gases.

The syrup is converted to 780 to 800 Brix in concentrators. Now the process of
crystallization, centrifugation, drying and grading are completed before packing the finished
products i.e. sugar.

In above process the electric power will be generated as By-product and will be used in
plant itself for process operation. Thus the electricity will be free of cost resulting into huge
savings to the extent of Rs.50/per quintal of sugarcane crushed

ii) Jaggery (Gur) Industry:

Jaggery (Gur) is a traditional Indian sweetener prepared using sugarcane. Farmers

make jaggery in their own farms using juice obtained after crushing sugarcane with a
crusher. The settled juice is boiled in open pans with continuous stirring and, simultaneously
clarificants are added in required quantity. The consistency of the juice becomes thick on
concentration by boiling and then it is poured into moulds to make Jaggery blocks on cooling.

It contains all the minerals and vitamins present in sugarcane juice and that is why it is
known as healthiest sugar in the world.

Jaggery (Gur) making plants are generally tiny in size, and the machineries of the
plants are fabricated by local artisans or engineering workshops

In north U.P. it was found that the entrepreneurs have three types of Jaggery (Gur)
producing units based on their production size.
 17

a) Tiny Unit: It has a capacity of 15 quintal crushing per day and production of Jaggery
(Gur) is around 1.5 to 1.75 quintal per day.

b) Medium Unit: It has a capacity of 50 quintal crushing per day and production of Jaggery
(Gur) is around 5 to 5.5 quintal per day.

c) Large Unit: It has a capacity of 70 quintal crushing per day and production of Jaggery
(Gur) will be around 7-8 quintal per day

In the Jaggery (Gur) manufacturing plants generally vertical roller type crushers are
used for juice extraction and it is operated by either diesel engine. For concentration of juice
M.S. Bels/Kadhai are used and local furnace made from ordinary bricks are used. They use
dried bagasse for charging the furnace.

D. Product Range:

i) Khandsari Sugar:
At present three types of Khandsari Sugar is manufactured from Sugarcane in our
country.
a) Non Sulphur Sugar
b) Sulphur Sugar
c) Bura
Khandsari sugar is mostly used as sweetener in Pharmaceuticals /Ayurved for syrup,
Squash & Beverages making. It is also consumed as a basic raw-material in the micro type
bakery industries for making Sweet & Salty biscuits and Cakes.
ii) Value added products of Jaggery (Gur):
Jaggery (Gur) is produced in different forms viz., solid, liquid and powder or granular
forms, which are described as:
a) Solid Jaggery (Gur):
The filtered cane juice was pumped into open pans kept on triple pan furnace, and
heated with the bagasse as fuel.
b) Liquid Jaggery (Gur):
It is an intermediate product obtained during concentration of purified sugarcane juice
during jaggery making, and is semi liquid syrup like product.
c) Granular or Powder Jaggery (Gur):
The process of making granular jaggery is similar up to concentration. The
concentrating slurry is rubbed with wooden scrapper, for formation of grains. The granular
jaggery is then cooled and sieved. Less than 3 mm sized crystals are found to be better for
quality granular jaggery.
 18

Value added products of Jaggery (Gur) like Confectionary Products, Aurvedic

Jaggery, Gur-Patti, Gur Laia Laddu, Ram Dana Laddu, Til Laddu, Gur Gazak, Gur-
Chocolate, Gur Burfi and Gur Containing Nutritional and Medicinal Substances are being
manufactured.

E. Quality of products:

To make good Sugar and Jaggery (Gur), soil condition should have 7 PH. Soil should
be a little granular so that water may be drained to avoid water logging. Quality of the sugar
and Jaggery (Gur) mainly depends on juice clarification. If juice is properly clarified quality
of the Sugar will be white crystalline in appearance and good in taste. Jaggery may be light
golden, golden, dark golden, light brown or brown in colour. People from different region
have different criteria for the best quality Jaggery. In north India Jaggery (Gur) with
amorphous texture with slightly lower sucrose content is preferred, in south India crystalline
Jaggery with characteristic yellow color is liked.

i) Products Nutrition Facts:

The details of average nutrition facts of the product are given below:
(in 100 gm.)

Product Carbohydrate Protein Fat Vitamins & Minerals Moisture Calories

Sugarcane 21.14 gm. 0 0 Fibre-0, Sodium-44 mg. & 78.85% 78 kcal

Juice Potassium 12 mg.
Sugar 99.98 gm. 0 0 Fibre-0 Sodium-0, 0.02% 387 kcal
Potassium-2 mg.,
Jaggery 88 gm. 0 0 Fibre-0, Sodium-27mg., 11.80% 358 kcal
(Gur) Potassium-453 mg,
Calcium-60 mg.
Phosphorous -30mg.,
Iron-12 mg.

ii) Composition of Jaggery (Gur), Liquid Jaggery and Sugar:

Sr. No. Particulars Jaggery (Gur) Liquid Sugar

Jaggery
1. Sucrose(%) 65-68 40-60 99.5
2. Glucose (%) 10-15 12-25 -
3. Water (%) 3-10 30-35 -
4. Proteins (%) 0.25 0.10 -
5. Calcium (%) 0.40 0.30 -
6. Phosphorus (%) 0.045 0.03 -
7. Iron (mg/100g) 11.00 7.5-8 -
8. Copper(mg/100g) 0.8 0.5 -
9. Vitamins 20.0 14.0 -
‗B‘(mg/100g)
10. Energy (K Cal.) 383 294 398
 19

iii) Testing of Samples of Khandsari Sugar and Raab:

Samples of Khandsari sugar were collected randomly from one of the Khandsari unit
of U.P. to check its quality against mandatory FSSAI parameters. The samples were got
checked from National Sugar Institute, Kanpur. The test results show that all the test
parameters were in the specified limits of FSSAI. The details may be referred at Table K.

F. Packaging & Marketing

i) Packaging:
Sugar crystals are dried by being tumbled through heated air in a granulator. The dry
sugar crystals are then sorted by size through vibrating screens and are then packed in the
familiar packaging we see in grocery stores or in bulk packaging for industrial use. Sugar
also attracts bacteria. Branded, packaged sugar is dust-free and hygienic as it packed
without direct hand contact. The compulsory packaging of sugar in jute bags has been
relaxed further and only 20% of the production is to be mandatorily packed in jute bags.
Jaggery is packaged traditionally under different packaging materials like paddy
straw, banana leaves, gunny bag, polythene sheet, etc., which possess poor barrier
properties against moisture, light, air, etc., leading to spoilage or deterioration of Jaggery
quality. Now a days Jaggery is packed in food grade material which guarantees the safety
and integrity of the product. In case of smaller consumer packs, the product need to be
packed in food-grade plastics conforming to relevant Indian Standard or any other suitable
non-toxic material. The fill of each package shall comply with weights and measures
legislation and legal metrology.

ii) Marketing:
Domestic Sugar consumption is forecast to 24 million MT for current year. Bulk
consumers account for two-third of total sugar consumption in India.
International sugar prices have been lower than domestic Indian prices since October
2016. When Domestic price of Sugar, goes down the level of Rs. 3200 per quintal, it makes
functioning of sugar mills and Khandsari almost unprofitable. The cheap imports of sugar
are also a big challenge for the domestic industry.
In 2017, India was the Seventh largest exporter of sugar having a share of 2.4% in
total global exports. India has been generally a net exporter of sugar. However, it has been
occasional net importer of sugar depending upon demand and supply situation in the
country. In global export of sugar, Brazil is the largest exporter of sugar in the world with a
share of 41.3%. Other major exporters of sugar are Thailand (9.4 %), France (4.9 %),
Guatemala (3.0 %), Germany (2.7%), Mexico (2.4%), India (2.4 %). Indonesia is the largest
 20

importer of sugar with a share of 7.8 %. Other major importers of sugar are USA (5.7 %),
Bangladesh (3.7 %), EU (6.2 %), China (3.6 %) and UAE (3.4 %).

Jaggery (Gur) is marketed in different shapes, colour and texture. Most of the Jaggery
(Gur) is prepared in solid form 80% and the remaining 20% is prepared in liquid as well as
granular form.
 21

Status of Khandsari Units in Uttar Pradesh: Table H

Production Information
MONTH CURRENT YEAR 2017
Serial Name of Licensed Working Cane Cane Jageery Total Raw Raw Total Jaggery Rabb Seera
No. District units units Crushing Crushing units (E+F+G) sugar sugar (1+2) Production Production Production
sulphur non- sulphur non-
sulphur sulphur
1. Bareilly 98 5 32+11 1-31 0 33-42 02-08 0-04 2-12 0 4.00 1-19
2. Moradabad 169 37 8.11 24.11 24.15 56.37 0.48 0.83 1.31 2.32 3.4 0
3. Dharpur 120 17 0 1.81 15.06 16.87 0 0.08 0.08 1.79(1) 0.22 0
4. Bijnaur 131 51 9.28 0 50.93 60.21 0.65 0 0.65 6.3 1.33 0
5. Shajhanpur 64 4 20.18 1.2 0 21.38 1.15 0.03 1.18 0.03 2.58 0
Total 581 114 37.57 27.12 90.14 154.83 04-08 0.94 5-12 10.44 7.53 0
Bareilly
6. Saharanpur 50 0 0 0 0 0 0 0 0 0 0 0
7. Muzaffarnagar 72 7 0 1.42 1.99 3.41 0 0 0 0.03 0.16 0
8. Shamli 22 0 0 0 0 0 0 0 0 0 0 0
9. Aligarh 21 2 0 0.03 0 0.03 0 0 0 0 0 0
10. Meerut 94 11 16.57 1.77 0 18.34 0.76 0.02 0.78 0.1 2.07 0.03
Total 259 20 16.57 3.22 1.99 21.78 0.76 0.02 0.78 0.33 2.23 0.03
Meerut
11. Sitapur 190 25 155.89 2.14 1 158.03 10.93 0.05 10.98 0.03 20.72 0.1
12. Lucknow 18 1 0 0 0.155 0.155 0 0 0 0.013 0 -
13. Gorakhpur 2 0 0 0 0 0 0 0 0 0 0 0
14. Deoria 2 0 0 0 0 0 0 0 0 0 0 0
15. Gonda 19 1 0 0 0 0 0 0 0 0 0 0
16. Azamgarh 7 2 0 0.03 0.045 0.075 0 0 0 0.0044 0.006 0
Total 217 23 155.04 0.03 0.2 0.23 10.93 0 0 0.0174 0.006 0
Lucknow
Grand 1057 157 209.18 30.37 92.33 176.84 15.08 0.96 6-12 10.7874 9.766 0.03
Total
Source: Office of Sugarcane Commissioner, Lucknow.
 22

No. of Mills in operation, Cane Crushed, Sugar Recovery %, Sugar Production, State Wise: Table I
DATA ON SUGAR SECTOR AS ON 01.06.2018
Average
Range
Retail of
No. of Mills Average Ethanol (in
in Cane crushed Sugar Production price of Ex- KLs)
Sugar (in Lac Cane Price Arrear (In Mill
S.No Name of State operation (in Lac MT) Recovery % MT) (In Rs./Cr.) Rs./Cr.) sugar price 2016-17 2017-18
2014-
15
&
2016- 2017- 2017- 2016- 2017- 2016- 2017- 2016- 2017- earlie
17 18 2016-17 18 17 18 17 18 17 18 2017-18 2016-17 2015-16 r Total Rs./Kg Rs./Qtl. Contracted Supplied Allocated Supplied
S
Estimat Actua SA FR SA FR A SA FR SA FR SA
ed l FRP P P P P P FRP P P P P P
11 11
1 Bihar 57.12 76.88 9.2 9.3 5.25 5.7 7.15 1575 1575 2159 2159 745 745 6 6 1 1 38 790 790 36 …… 63800 60300 53300 32100
14 14
2 Haryana 64.52 71 10.3 10.31 6.65 7.41 7.32 1485 2049 984 2530 0 722 0 0 0 0 0 0 722 38 …… 53600 34500 78700 18600
16 16 2970-
3 Punjab 67.5 84 9.79 9.65 6.6 6.5 8.11 1556 2033 989 2604 0 922 0 0 0 0 0 0 922 36 3030 46000 44300 41500 21400
8 8
4 Uttrakhand 35.06 47.87 9.86 9.4 3.46 3.92 4.5 806 1080 1043 1292 454 703 0 0 0 0 25 454 728 37 24600 13300 21000 7100
116 119 1348 1367 2950-
5 Uttar Pradesh 827.16 1096.9 10.61 10.87 87.73 110 119.22 19144 25386 27770 34304 7112 6 0 59 0 0 125 7112 0 34 3000 326600 274000 350200 143100
18 18 2700-
6 Andhra Pradesh 41.16 55.85 9.41 9.4 3.85 4.83 5.25 1054 1054 1333 1333 204 204 0 0 20 20 0 224 224 39 2780 23300 22600 47600 21000
7 7
7 Telangana 11.16 24.56 10.38 10.99 1.2 2.4 2.7 291 291 729 729 186 186 0 0 0 0 0 186 186 40 6000 4300 138700 41100
19 17 2870-
8 Gujarat 82.2 108.82 10.64 10.2 8.75 10.4 11.1 3191 3191 2460 2460 1020 1020 21 21 5 5 13 1059 1059 37 2940 18500 17600 56500 21500
151 186 1008 2134 2650-
9 Maharashtra 373.13 952.45 11.24 11.24 42.01 107 107.08 10089 9 21341 1 1908 1908 3 3 56 56 176 2143 2143 36 2725 93000 74200 432900 146600
64 65 2675-
10 Karnataka 200.4 347.54 10.69 10.61 21.43 36.75 36.86 6364 6364 9942 9942 1892 1892 0 0 21 21 16 1929 1929 36 2750 65700 51300 182200 73900
39 43 3050-
11 Tamil Nadu 115.87 67.47 8.97 8.3 10.54 5.88 5.6 2738 3264 696 1597 0 375 0 407 0 584 550 0 1916 33 3150 3400 500 9700 4700
1
12 Puducherry 0.66 7.45 0.06 0.06 19 19 10 10 7 7 4 21 21 32 ……
4 4
13 Chhattisgarh 4.76 8.75 9.38 9.03 0.47 0.9 0.79 110 110 167 167 35 35 0 0 0 0 0 35 35 34 …… 0 0 0 0
3 2
14 Odisha 4 3.3 9.5 8.79 0.38 0.44 0.29 97 97 100 100 58 58 2 2 0 0 3 63 63 35 …… 0 0 0 0
19 16
15 Madhya Pradesh 33.13 53.54 9.58 9.9 3.74 2.72 5.3 999 999 1355 1355 312 312 6 6 3 3 14 335 335 38 …… 0 0 20900 200
1 1
16 Goa 0.47 0.65 8.02 7.69 0.04 0.13 0.05 6 6 124 124 77 77 0 0 0 0 0 77 77 33 …… 0 12800 1400
17 Dadra & N. H. 0 0 0 42 ……
18 Assam 0 0 0 36 ……
19 Jharkhand 0 0 36 0 0 0 0
20 Kerala 0 0 0 36 …… 0 0 0 0
21 Nagaland 0 0 0 45 ……
1 1
22 Rajasthan 1.19 0.42 5.74 7.14 0.1 0.03 0 0 0 33 …… 0 0 0 0
1
23 West Bengal 0.07 7.08 0.01 1 1 0 0 0 39 …… 13900 11200 15100 5800
24 Others(Delhi) 0 0 33 68700 57000 127100 52300
493 528 5760 8203 2264 2482 2838-
All India 1919.56 3000 10.52 10.71 202.27 305.04 321.35 49525 8 71192 7 14003 5 48 514 113 697 964 14428 0 36 2911 807100 665100 1588200 590800
All India Position during the corresponding period last year 3651-
3053 6296 3621 8280 43 3691
 23

Sector-wise Sugarcane Crushing, Sugar Production & Sugar Recovery: Table J

Sl. No. Sector Year 2015-16

Crushing Sugar Production Sugar Recovery
Quantity (Lakh Qtl.) ( in % )
(Lakh Qtl.)

1. Corporation 32.73 3.10 9.47

2. Co-operative 648.80 60.71 9.36
3. Private 5775.12 621.72 10.77
Total: 6456.65 685.53 10.62
Year 2016-17
Sl. No. Sector Crushing Sugar Sugar
Quantity Production Recovery
(Lakh Qtl.) (Lakh Qtl.) ( in % )
1. Corporation 42.94 4.06 9.47
2. Co-operative 794.65 74.71 9.40
3. Private 7434.03 798.54 10.74
Total: 8271.62 877.31 10.61

Year 2017-18

Sl. No Sector Crushing Sugar Sugar

Quantity Production Recovery
(Lakh Qtl.) (Lakh Qtl.) ( in % )
1. Corporation 44.46 4.45 10.00

2. Co-operative 954.22 93.52 9.80

3. Private 10041.95 1100.92 10.96

Total: 11040.63 1198.89 10.86

 24

Test results of samples collected from Khandsari unit of Distt. Lakhimpur: Table K
 25

5. Discussions with Stake Holders

The consultation with stake holder is one of the most important areas to have 360°
picture of the sector. In preparation of this report this has been given due importance. The
team had detailed discussions with all the major stake holders viz. Central/ state Govt.
Ministries & Departments, Institutions, Industry Associations, MSMEs, Sector Experts and
Sugarcane Growers and also collected the information on following parameters;
1. Policy of Govt. of India and State Govts.
2. Sugarcane Cultivating Districts, Area of Sugarcane grown, Varieties of Sugarcane
3. Harvesting, Transportation of Sugarcane and Slip distribution System.
4. Sugar & Jaggery Production, Recovery of Sugar/Jaggery.
5. Price Policy of Sugarcane and Sugar.
6. Modernization of Plant and Process.
7. Marketing, Packaging, Designs of moulds for jaggery etc. and Value Added
Products.
8. Finance
9. Issues of Farmers and other Socio-Economic issues of sugarcane belt like
employment, labour etc.
10.Taxation, Mandi Samiti Tax etc.
The team visited O/o Sugar Commissioner, Lucknow and units situated in different
districts of U.P like Sitapur, Lakhimpur, Lucknow, Kanpur Nagar, Moradabad, Amroha,
Bijnore, Faizabad and Kanpur Dehat. In Maharastra team visited O/o Sugar Commissioner,
Pune and units situated in Distt. Sangli and Kolhapur. Team also visited O/o sugar
commissioner, Bhopal and units situated in Distt. Narsinghpur in Madhya Pradesh.
The team also visited Ministry of Agriculture & Farmers Welfare, Govt. of India,
Shastri Bhawan, New Delhi and Department of Food & Public Distribution, Directorate of
Sugar & Vegetable Oil, Ministry of Consumer Affairs, Food & Public Distribution, Krishi
Bhawan, New Delhi to collect the FRP and other policy related to sugar of Central Govt.,
Export and data pertaining to area of sugar cane cultivation and sugar produced in our
country.
The brief details of important visits and discussions are as follow:
A. Uttar Pradesh
i) Visit of Office of Sugar Commissioner: Officers of MSME-DI, Kanpur visited
the O/o Sugar Commissioner, Dalibagh, Lucknow on 10.04.2018 and collected the
information about the data of sugarcane, sugar, no. of sugar mills/Khandsari sugar units in
Uttar Paradesh. In meeting with Shri Rakesh Mishra, IAS, Addl. Cane Commissioner,
Lucknow, he informed about the status of khandsari sugar/Jaggery (Gur) units and welfare
steps taken by Govt. of U.P. He also provided the valuable data inputs to be incorporated in
 26

the techno economic feasibility report on Khandsari sugar/Jaggery (Gur) being prepared by
this Institute.

During discussion with Shri Vishnu Kumar Shukla, Addl. Cane Commissioner,
Lucknow informed about the research & development work carried out at their Research
Centres and the high yield sugarcane varieties sown in different parts of U.P. He further
informed about the manufacturing of value added products like ethanol, paper products,
cattle feed, micro nutrients and bio-fuels etc. from by-products of sugar industries.

In meeting with Shri R. N. Yadav, Dy. Cane Commissioner, Statistics, Lucknow

collected the data of sugarcane cultivation area, yield, production, sugar production, sugar
recovery, number of sugar mills, licensed Khandsari units in Uttar Pradesh.

ii) Visit of District Sitapur- Officers from MSME-DI, Kanpur visited various gur
manufacturing units situated at Village & Post Jharekhapur, District Sitapur on 29.03.2018.
A meeting was held with sugarcane crusher owners and sugarcane farmers and collected
valuable information pertaining to Gur industries.
1. There are about 2500 small crushing units which are manufacturing gur in District
Sitapur. In Jharekhapur, there are more than 100 such small units working adjoining to
Sitapur-Lakhimpur Highway. These Crushers are equipped with mainly 20‖ & 18‖ Rollers
and works from November to April every year. The commonalities for these units are–
a. Land area required 2 acres (mostly rented @ Rs.50000/- per year).
b. Total Capital Investment – Rs.16.00 lakh approx. on an average (Plant &
Machinery Rs.8.0 lakh & Rs.8.00 lakh as working capital).
c. Employment per crusher -16 to 18 Nos. (Labourer charges are @ Rs.225-250/ per
day).
d. Crushing capacity per crusher per hour – 10 to 12 Qtl.
e. Gur manufactured per hour – 120 kg to 130 kg.
f. Batch time for concentration of sugarcane juice to gur: 3-4 hours.
2. Sugarcane is purchased by crusher owners directly from sugarcane growers and
the rate of sugarcane is decided on daily basis. Generally they pay the price of sugarcane
Rs.200 to 250/ per quintal which is quite less than MSP of sugarcane declared by the Govt.
of U.P.
3. Crusher owners was of the view that as price of sugarcane is decided by the
Govt., the selling price (MSP) of gur may also be decided by the Govt. and it should be 9-
10% of MSP for sugarcane.
4. During the meeting farmers briefed that they don‘t receive the sugarcane supply
slips from sugar mills in time and for sufficient quantity of sugarcane so that it becomes
difficult for them to sell their produce to the sugar mills. This system should be transparent
 27

and more prompt. Closed Sugar mills situated at Maholi and Kamlapur of District Sitapur
should be started, so that exploitation of farmers can be checked.
5. A separate mandi for selling gur may be set up in district Sitapur/Lakhimpur so
that the gur manufacturers can sell their products directly and role of middle man could be
eliminated.
6. List of participants of the meeting –
i. Shri Kulwant Singh, Sitapur Mob. 8808415801
ii. Shri Munuwa Singh, Jharekhapur, Sitapur Mob.9670211092
iii. Shri Jadunath, Jharekhapur, Sitapur Mob.8400412097
iv. Shri Sharif Ahmed, Jharekhapur, Sitapur Mob. 9452146768

iii) Visit of District Lakhimpur Kheeri-

Director, MSME-Development Institute, Kanpur alongwith the team, Asstt. Sugar
Commissioner and Khandsari Inspector of Sitapur, Govt. of U.P. and Khandsari Sugar
manufacturers had a meeting at M/s Gupta Cottage Udyog, Village-Ghoomchini, Post-Kala
Aam, District Lakhimpur Kheeri. The team also visited the above unit and deeply studied
the process of manufacturing of Khandsari sugar. Shri Rajesh Verma, Assistant Sugar
Commissioner, informed that there are a good number of sugar mills (09 Nos.) and
Khandsari sugar manufacturing units (18 Nos.) in the District Lakhimpur, hence some
needful action may be taken to solve the problems of this sector. In discussion following
suggestions were given by Khandsari sugar mill owners-
1. The owners rarely get their products tested from reputed Labs; hence it is not
possible for them to assess the ingredients present in their products. The team collected
the samples of the products (Khandsari sugar & Raab) which were sent to National Sugar
Institute, Kanpur to check the pole percentage, reduced sugar, moisture and sulphur
contents in the products. The report shows that the test results are satisfactory.
2. Khandsari sugar manufacturers informed that they don‘t have any testing facility
individually in their unit hence a common facility centre providing the facility of testing,
process development, skilling, marketing and repair & maintenance facility, may be set up
at a suitable place of the district. It will also cater it services to the units situated in nearby
district.
3. Khandsari sugar Manufacturers demanded that vacuum pan drying facility
for concentrating the sugarcane juice should be allowed in the Khandsari units with ceiling
of 500 TCD capacity or it may be linked with turnover criteria. It will increase the sugar
recovery 3% to 4 % which will enhance the profitability of Khandsari units. This will enable
them to pay more price of sugarcane to the farmers.
 28

4. In Lakhimpur Kheeri District most of the land is low lying area (Tarai Area) hence it
becomes difficult to introduce high yield variety of sugarcane in this district. However,
efforts are being made to develop high yield variety suitable for this area. CO 238 and CO
329 varieties of sugarcane are getting popularity in this area.
5. It was informed that Khandsari mills are providing huge employment both direct &
indirect to local people hence contributing towards better law & order in the area. A
Khandsari unit of 500 TCD provides direct employment to about 200 to 250 persons and
indirect employment to about 5000 persons. Such unit can generate the electricity to fulfill
the requirement of 2 to 3 nearby villages.
6. As like sugar mills loan for working capital should also be given at lower rate of
interest or at subsidized rate of interest to Khandsari sugar/Gur manufacturing units.
7. Khandsari Licensing Order, 1967 may be simplified. Mentioning of Roller size,
manufacturing process, type of furnaces used etc. may be stopped.
8. Awareness Programmes for the promotion of marketing both in
National/International markets, may be organized.
9. Exposure visit of developed Khandsari sugar/gur manufacturing units and
Research Centre may be arranged for the local manufacturers.
10.Following members were present during the meeting-
i. Shri U.C.Shukla, Director, MSME-DI, Kanpur - Mob.7839900100
ii. Shri L.B.S.Yadav, Dy.Director, MSME-DI,Kanpur- Mob.9455747578
iii. Shri S.K.Agnihotri, Asstt.Director, MSME-DI,Kanpur-Mob.9451139811
iv. Shri Neeraj Kumar, Asstt.Director, MSME-DI,Kanpur-Mob.9761839876
v. Shri Rajesh Kumar, Asstt. Sugar Commissioner, Khandsari Department, Govt. of
U.P. Mob.7081202604
vi. Shri Chandra Shekhar Singh, Khandsari Adhikari. Khandsari Department, Govt. of
U.P. Mob.7081202622.
vii. Shri Som Agarwal, Partner. M/s Gupta Cottage Udyog,Lakhimpur
Mob.9918699111
viii. Shri Ved Prakash Agarwal, Prop. M/s Shri Shyam Ji Khandsari
Udyog,Lakhimpur Mob.7379790550
ix. Shri Prateek Agarwal, Director, M/s Gupta Cottage Udyog,Lakhimpur
Mob.9839826881

iv) Visit of Khandsal Kalan, District Amroha-

Officers of MSME-DI, Kanpur alongwith Asstt. Sugar Commissioner of Moradabad
& Bijnore, and their staff members visited Khandsari Sugar/Gur Manufacturing units in the
districts Muradabad, Amroha & Bijnore of Western U.P.
 29

On dated 19.04.2018 meeting was held at M/s Chowdhary Dhyan Singh Crusher,
village and post-Khandsal Kalan, District Amroha.

In meeting following issues alongwith their suggestions were discussed –

1. Mandi Samiti Shulk which is charged @2.5% on value of finished products may be
abolished.
2. Gazette Notification to waive off developmental commission charges which is
@0.5% at present may be issued.
3. EPF on contractual labourers should not be applicable in this sector as this
industry is seasonal and works from Nov. to April every year.
4. In Khandsari sugar/Gur units‘ payment of sugarcane is made on immediate basis
and their product is sold on one week to one month credit. Due to this reason owners face
crisis of funds hence loan for working capital may be given to them on interest free or
subsidized rate of interest basis. The Criteria for deciding the loan amount may be decided
on the basis of last year turnover.
5. All the Khandsari sugar units owner unanimously demanded for the permission to
use vacuum pan drying facility in place of open pan drying in their units. Following clauses
may be kept into consideration for granting the permission to use vacuum pan drying
facility.
a. Ceiling on production capacity, it may be restricted upto 500 TCD.
b. The turnover criteria may also be taken into account for granting the permission
and the unit of turnover maximum upto Rs.250 Crores may be allowed for use of vacuum
pan drying facility.
c. If the permission to use vacuum pan drying is granted, all these units will be able
to pay sugarcane price as per the Central Government price policy for the sugarcane i.e.
that is Fair & Remunerative Price (FRP) which is Rs.255/- per quintal for the year 2017-18
linked to a basic recovery rate of 9.5% subject to a premium of Rs. 2.68 per quintal for
every 0.1 percentage point increase in recovery above the level.

6. Subsidy on unit price of electricity may be given to gur manufacturers.

7. Quality control Lab. may be established to test the quality of the
product; it may be set up under MSE-CDP Scheme.
8. Khandsari/Gur units are situated in rural areas and emission of
Polluting substances is negligible, hence they may be considered under green category
and may be exempted for obtaining license from Pollution Control Board.
9. While granting license (under Khandsari Sugar Manufacturers License
Order,1967) for opening a Khandsari units- the following relaxation may be given-
 30

a. Limit of Roller Size- unit should be free to use the size of roller and its
requirement.
b. Manufacturing process.
c. Type of furnace used (Meerut or Ruhelkhand Type) - unit should be free to use
any type of furnace.
10.MSP of Gur should also be decided by the govt. to protect this heritage industry.
11.Most popular variety of sugarcane sown is CO 238. It gives maximum sugar/gur
recovery.
12.Following Khandsari Unit Owners were present in the meeting –
1. Shri Harpal Singh, President, Khandsari Mfrs, Amroha and Prop. of M/s Nanak
Cane Crusher, Amroha.Mob.9758668993
2. Shri Lala Roop Singh, Patron, Khandsari Mfrs, Amroha and Prop. of M/s Jamuna
Khandsari Udyog, Amroha Mob.9412248733.
3. Shri Pushpendra Singh, General Secretary, Khandsari Mfrs, Amroha Mob.
No.9837894794.
4. Shri Sukhbir Singh, Prop. M/s Khalsa Cane Crusher, Mob.9837440845
5. Sh. Rohit Chikara, Prop. M/s Ram Bharose Singh & Co., Mob.9927048055.

v) Visit of Dhanaura, Distt. Amroha -

Issues discussed during the Meeting at M/s Jai Shiv Cane Crusher, Amroha:
1. In this region most of the Khandsari Sugar Units manufacture non sulphur sugar,
hence latest technology is required to improve the quality of the product.
2. Hygienic conditions should be improved to enhance the quality and demand of the
product.
3. In Khandsari sugar units besides sugar, rascut is manufactured as secondary
product which is used mainly in cattle feed industries. This product does not get appropriate
price hence substitute product like Raab etc. may be manufactured by the unit.
4. From 1 quintal of sugarcane, 7 kg. sugar and 6-7 kg rascut is manufactured by
units.
Following participants attended the meeting –
1. Sh. Subhash Chand Gupta village and post Vasipur, Dhampur, Distt.
Amroha. Mob.9927853042.
2. M/s Niadra Mal Sugar Indusries, Prop. Sh. Rajeev Agarwal, President,
Khandsari Sugar Manufacturers‘ Association, Dhanaura Mob.9837788372.
3. M/s B.M.S. Khandsari Udyog, Dhanaura Prop. Shri Umesh Chandra Garg,
Mob. 9837790524.
4. M/s Heera Sugar Industries, Mandi, Dhanaura Prop. Shri Mukesh Agarwal,
Mob. 9837790532.
 31

vi) Visit of Najibabad, District Bijnore-

On dated 20.04.2018 meeting was held between officers of MSME-DI, Kanpur, Asstt.
Sugar Commissioner, Bijnore and his staff and owners of Khandsari Sugar Mills Najibabad,
Bijnore.
Following issues were discussed during the Meeting-
1. Furnaces with improved designs may be introduced in Khandsari sugar units.
These may be re-designed with more heights and more fuel efficiency.
2. Dhara 3/7 may be used only in un-avoidable circumstances. It may be simplified.
3. Value addition of gur products should be done by the use of improved designs,
mixing of nutritional & medicinal ingredients in Jaggery (Gur). It will increase the demand of
products and hence the profitability of the unit.
4. Following participants attended the meeting –
1. Mr. Rajul Randhar Mob.9837072275 Director M/s Shambu Nath Balmukund Sugar
Works, Haridwar Road, Nazibabad, District-Bijnore
2. & Mr.Sandeep Rathi, Director M/s Shambu Nath Balmukund Sugar Works,
Haridwar Road, Nazibabad, District-Bijnore

vii) Visit of Akbarabad, District Bijnore-

The team visited M/s Shree Durga Sugar Factory, Village-Sabha Chandpur, Kesu
Post Akbarabad, Distt. Bijnore. Prop. of the unit Mr. Ashendra Singh Mob. No.9837057726
had detailed discussion for the betterment of Khandsari Gur manufacturing units. He
suggested that Khandsari gur manufacturing units should use mini boilers to concentrate
the sugarcane juice. It will reduce the use of bagasse as fuel and also reduce the no. of
manpower engaged in traditional furnaces.
He handed over a representation on behalf of his association mentioning the issues
pertaining to Khandsari gur sector.

viii) Visit of Pukhrayna, District Kanpur Dehat-

Shri Uma Nath Tiwari, Khandsari Inspector, Govt. of U.P informed that there are 4
Khandsari licensed units, one each in District- Gonda, Azamgarh, Mau & Kanpur Dehat
(Pukhraya). Accordingly, officer of this Institute visited M/s Shree Ram Cane Crusher,
Village-Vidkhuri, Post- Akodhi, Distt. Kanpur Dehat, on 18.04.2018 and noted down the
problems faced and suggestions given by the Prop. of the unit. The details are as under –

1. There is no sugar mill working in Pukhrayna & nearby area, hence sugarcane
growers are not taking interest in sowing the sugarcane crop. Pukhrayna sugar mill closed
since a long period back. If it comes in operation the farmers will start growing of sugarcane
 32

crop, it will also facilitate to Khandsari sugar/gur manufacturers to meet out their raw-
material demand.
2. Sugarcane crop needs frequent watering in the fields. There are limited
sources of irrigation so farmers face irrigation problem. The ground water level is quite low
hence irrigation by Tubewell is very costly. Irrigation by Canals is cheapest mode hence
canals network may be extended.
3. The soil of this region is not very appropriate for the cultivation of sugarcane
hence seeds of sugarcane varieties suitable for this region may be provided to increase the
profitability.
4. The price of sugarcane paid to sugarcane growers is not appropriate hence
they do not take in the cultivation of this crop.
5. Many crusher units which are temporarily set up by the outsiders mainly from
western U.P. promise to pay the highest price of sugarcane but finally they cheat the
farmers. Due to this problem it becomes difficult for the local Khandsari gur manufacturers
to get the sugarcane in sufficient quantity. Administration of the District should look into the
matter and check the entry of temporary outsiders.
6. The price of gur (MSP) should also be declared for gur.
7. Latest Technology pertaining to the crushing, juice concentration, furnace and
value added products should be provided to the gur manufacturers. For this, training
programme and exposure visit of developed units & Research Centres may be arranged by
the government.
8. Loan for working capital on subsidized rate of interest or zero interest may be
given to the gur manufacturers.
9. Khandsari Licensing Procedure, 1967 may be simplified.
10. Main features of Khandsari unit situated in Pukhrayna -
a. Engine capacity – 100 HP.
b. Roller Size – 10‖X12‖
c. Furnace – 05 Nos. Meerut type
d. No. of Bels -15 No. (each of 60 liters capacity)
e. Time taken in each cycle - 45 minutes.
f. Time taken for converting the dense mass (Raab) into gur-15 to 20 minutes.
g. Gur manufacturing at one furnace per 8 hours per day – 6 quintal.
h. Gur recovery in early variety of sugarcane is 11 to 12 kg, whereas later on it
increases from 12 to 13 kg.
11. Khandsari gur manufacturing units face the problem of natural clarient such as
Deola (Jangli Bhindi). To address this issue some farmers should come forward for its
cultivation.
 33

12. The meeting was held with Shri Ashok Kumar Sachan, Prop. of Shree Ram Cane
Crusher, Pukhrayna Mob. No.9005408322.

ix) Visit of Faizabad District -

Govt. of Uttar Pradesh has selected district Faizabad for ‗Jaggery Product‘ under
‗One District – One Product‘ (ODOP) scheme. The purpose of selecting the same is to
create employment, skill development, quality improvement, technology upgradation,
national and international branding, setting up of common facility centre & trade centre and
to develop this heritage industry in district Faizabad.
The team of officers of MSME-DI, Kanpur attended the meeting held under the
chairmanship of Dr. Navneet Sahgal, IAS, Principal Secretary, Khadi & Gramodyog, Govt.
of U.P. on dated 29-05-2018 to discuss the issues and their solutions pertaining to jaggery
(Gur) industry. The main points raised by the jaggery manufacturers are as under:-
a) At par with sugar mills, jaggery units should also be given interest free loan
minimum for 5 years duration.
b) Setting up of a complete production unit equipped with latest technology and a
testing lab as common facility centre under MSE-CDP scheme.
c) Minimum support price for gur should be declared both by Central & State
Government.
d) Gur and its by-products like Vinegar, Raab and Gur powder should be free from
license.
e) A single window system should be set up in District Industry & Enterprise
Promotion Centre (DIEPC), Faizabad to facilitate existing and prospective entrepreneurs.
This outlet will facilitate them by rendering the information of market, sugarcane price,
latest technology for the manufacturing of jaggery and its by-products, finance and NOCs
applicable for this sector etc.
f) Workshops should be organised for obtaining Bar Code, ISO Certification and
FSSAI license etc.
g) Training programme should be organised on export promotion, packaging and
latest technology developed by various laboratories.
h) Technology developed by the research institutions for Value added products of
jaggery like liquid gur, gur patti, gur chocolate and gur burfi etc. should be transferred to its
manufacturers on free of cost basis.
i) A warehouse equipped with isolated air conditioned facility spread in 50,000 Sq.
Mtr. area should be developed and all Jaggery (Gur) manufacturers will avail its facility for
the storage of their product.
 34

Dr. Navneet Sahgal, IAS, Principal Secretary (Khadi & Gramodyog), Govt. of
U.P. after having long discussions was of the view that:-
1. The Government will consider promoting the manufacturing of Organic Gur. For
this purpose, awareness workshops will be organised to sensitize farmers for growing
organic sugarcane crop in the fields and it will be certified by the appropriate agencies.
Organic Gur is very safe for health point of view and has huge demand both in national and
international market. Though the yield of sugarcane is less, but price of crop and sugar
manufactured by it is 4 to 5 times higher than the conventional products.
2. The Government will consider to open retail outlets on the national highways
passing through district Faizabad to sale the product manufactured by local growers.
3. Efforts will be made to obtain Geographical Indication (GI) for jaggery
manufactured in district Faizabad and a common branding will done for this product.
4. A meeting will be held with bankers to provide loan at subsidized rate of interest
for setting up new units and modernization of the existing units. It will be covered under the
existing scheme of Govt. of UP. Bankers will be asked to treat this sector under agriculture
products and terms and conditions for providing loan to this sector should be same as
applicable in agriculture sector.
5. CLCSS and CGTMSE schemes of Govt. of India will be useful for the
modernization of above sector.
6. Jaggery (Gur) product will be shaped in modern designs and with various flavours
and it will be sold in attractive packaging. For this help will be taken of National Institute of
Design & Indian Institute of Packaging.
7. As the district has been designated for jaggery under ODOP scheme hence
priority will be given to set up new jaggery or its by-products manufacturing unit under the
PMEGP, Mukhyamantri Yuva Swarozgar Yojna, Startup, Standup and Pradhanmantri
Mudra Yojna.
List of the participants of the Meeting at Faizabad on 29.05.2018
Sl.No. Name of Entreprenuer Address Mob. No.
1. Avadesh Pratap Singh V&P – Pura Bazar, Faizabad 9839269081
2. Rakesh Prasad Dubey Gram – Behrain Post-Pirkhauli 9450762711
(Organic Gur) Sohabal, Faizabad
3. Rajendra Prasad Verma Faizabad 9936148148
4. Shiv Mohan Pandey Faizabad
5. Avinash Dubey, Faizabad 9695040675
(Organic Gur)
President, Jaggery Manfs.
Association, Faizabad
 35

6. Ved Prakash Singh Shantipur, Faizabad 9936412564

7. Hari Murti Verma Alna Bhari, Faizabad 9452094189
8. Arvind Dev Verma Nasratpur (Velariya), Faizabad 9450542727
9. Baljeet Verma Alnabhari,Faizabad 9450655595
10. Yashpal Singh Gegauli 9838851696
11. Rajendra Prasad Verma Maglasi, Sohaval 9936148148
12. Shiv Mohan Pandey Pilkhawna 8756210470
13. Ghanshyam Verma Mitrasenpur 9565921108

B. Maharashtra :

i) Visit Of O/o Sugarcane Commissioner Pune:

1. Officers from MSME-DI, Kanpur and Mumbai visited O/o Sugar Commissioner,
Sakhar Sankul, Pune on 09-05-2018 and held meeting with Shri D. I. Gaikwad, Jt. Director
(Development). In discussion Mr. Gaikwad briefed the following details pertaining to sugar
mills and Khandsari units situated in Maharashtra:-
1. Sugar Mills-
a) Total sugar mills in Maharashtra - 187
b) Crushing stopped due to off season - 178
c) Mills working at present - 09

2. Khandsari Sugar Units-

a) Total Khandsari Sugar Units in Maharashtra - 10
b) Operational during the season - 04
c) Khandsari units working at present - 00
d) Permanently Closed units - 06
2. In Maharashtra, Khandsari manufacturers licensing order-1979 is granted to the
entrepreneurs who are going to start Khandsari sugar/jaggery (Gur) unit. This license is
issued by O/o Sugar Commissionerate, Pune. It is very simple and entrepreneur friendly.
3. Payment of sugarcane to the farmers of Maharashtra is done according to FRP
i.e. @ Rs. 255/- per quintal. It is linked to a basic recovery of 9.5% subject to a premium of
Rs. 2.68 per quintal for every 0.1% increase above that level.
a) Price of Sugarcane in Vidarbha Region - Rs. 255/- per quintal.
b) Price in western Maharashtra region - Rs.300/- to 325/- per quintal
4. Calendar of crushing is decided by sugar mills in the beginning of the season. The
harvesting of crop of sugarcane is done as per the schedule of sugar mills. Harvested crop
is transported from the fields to sugar mills for weight measurement and further crushing
 36

process. This whole process of harvesting and transportation is done both by sugar mills
and Khandsari units. Harvesting and transportation cost which comes out to be Rs. 25 per
quintal approx. and it is paid by sugar mills/ Khandsari units. Records pertaining to
sugarcane farming i.e. date of cultivation, area, variety, regular/ irregular crop, are
maintained by sugar mills / Khandsari units.
5. Highest sugar recovery varieties of sugarcane sown in Maharashtra are CO86032.
The average yield of sugarcane is 80 to 100 ton per hectare. Average recovery of sugar is
10 to 12 kg from per Qtl. of sugarcane. The sugarcane sown in Maharashtra is as per the
following schedule:

S. No. Name of the Crop Sowing Duration of the Yield (Ton Per
Month Crop (In Months) Hect.)
01 Adsali July 18-20 100
02 Pre Seasonal October 15 80 to 100
03 Seasonal January 12 60 to 80

Sugarcane once sown is retained for 3 Seasons and the year wise yield is as
follows:-
a) 1st year - 80 to 100 Tons per Hectare.
b) 2nd year- 90 Tons per Hectare.
c) 3rd Year- 80 Tons per Hectare.

6. Capacity of Sugar Mills in Maharashtra ranges from 1250 to 10000 TCD.

7. 2 nos. of Centres are working for the development of sugarcane and R&D works in
the state of Maharashtra:-
a) Sugar Cane Research Centre, Padegaon, Taluka- Paltan, District-Satara.
b) Basant Dada Sugar Institute, Manjari, Pune.

ii) Visit of Karad, Distt. Sangli:

On dated 10.05.2018 officers of MSME-DI, Kanpur & Mumbai visited M/s Diamond
Sugar Works, Karad, Patan Road, Mundhe, Distt. Satara a Khandsari sugar manufacturing
unit and had interaction with Sh. Kishorbhai D. Kenia, owner of the unit (founder president
of Khandsari Association of India) and Sh Ramniwas Agrawal, Proprietor of M/s Hanuman
Khandsari Sugar Mills Distt. Latur, Maharashtra. They briefed the problems faced by the
owners of Khandasari Industry in the state of Maharashtra.

a) Out of 10 licensed Khandsari sugar units, only 4 were in working during 2017-18.
b) They pay same price to the growers of sugarcane as being paid by sugar mills.
 37

c) Vacuum Pan Drying facility should also be allowed to the Khandsari Units, so that
they can compete with sugar mills and can sustain their existence. Government can put a
limit of 500 to 800 TCD for Khandsari Units or can derive a formula based on the turnover
of the unit. He told that this sector is giving direct and indirect employment in rural sector
and assist in uplifting the living standard of farmers and people engaged in these units. He
further emphasized that a successfully running Khandsari unit can also provide sufficient
Electricity to 2-3 nearby villages. By Open Pan Drying there is a loss of approximate 3-4%
of sugar recovery which in turn is a huge national loss.

d) As Khandsari Sugar/ Gur units make immediate payment to the farmers, which
attract them to sell their crop to these units. Whereas these units are not capable of selling
their product immediately. To meet out the payment cycle, these units need loan for
working capital on subsidised interest basis.
e) He emphasized that when selling rate of sugar is not fixed by the Government,
how rate of sugarcane can be fixed. Either MSP of sugar should be fixed by the
Government or price of sugarcane should be freed from Government control and it should
be decided by the market.

iii) Visit of Kolhapur District:-

On dated 10.05.2018 officers of MSME-DI, Kanpur & Mumbai also visited sugarcane
& Jaggery (Gur) Research Station, Kolhapur and had interaction with Sh. G. S. Nevkar
Head of the Station. He briefed the research and development work carried out by his
centre for the production of Jaggery (Gur). He shared the documents related to latest
manufacturing process of Jaggery and other value added products of Jaggery. He informed
that Jaggery (Gur) Mandi of district Sangli is famous in our country for the quality of
Jaggery (Gur) and value added products. In discussion, few entrepreneurs manufacturing
Jaggery/Gur informed that they are very conscious about the hygienic conditions in the unit
and product being manufactured. They are shifting from conventional Gur to Organic Gur.
They started switching over from MS Plant to SS Plant. Entrepreneurs are focusing on the
design and packing of product.
 38

C. Madhya Pradesh:

i) Visit of O/o Sugarcane Commissioner & Commissioner (MSME), Bhopal:

Officers of MSME-DI, Kanpur & Indore had meeting with Shri B. P. Sahare, Addl.
Director, Agriculture /Sugarcane on 24-05-2018 at Vindhyachal Bhawan, Bhopal. In
Madhya Pradesh, Sugarcane Deptt. works under the Ministry of Agriculture and deals in
activities like collection of data of sugarcane production, policy formation for setting up of
sugar mills, ensuring appropriate price of sugarcane, sugarcane slip distribution, research
and development activities, issuing of no objection certificate to Khandsari units (for
renewal of both existing and new units) and other relevant issues. On-line reporting is
done by sugar mills on weekly basis on the website of the department.
1. In meeting with Shri Sanjay Pathak, Dy. Director (MSME), Deptt. of MSME, Govt.
of M.P., Shri Pathak briefed that license to new Khandsari units and renewal of license of
existing Khandsari units is issued by Joint Director (MSME), Deptt. of MSME, Govt. of M.P.
General Managers of District Trade & Industry Centre keep monitoring over the activities of
Khandsari units and also ensure the execution of Khandsari Act (Ganna Pelak Adhiniyam-
1974 of Govt. of Madhya Pradesh).
2. There are 20 sugar mills in Madhya Pradesh, out of which 03 are in co-operative
sector and 17 in private sector. Each sugar mill is of approx. 2500 TCD. As for
Maharashtra, harvesting and transportation of sugarcane in M.P. is done by sugar mills but
its costs apporx. Rs.250 per ton is deducted from the payment due to farmers.
3. Payment of sugarcane is done by the sugar mills as per the Central Government
Fair and Remunerative Price Policy (FRP) for the year 2017-18 for sugar cane. The
payment to farmers was made @ Rs. 255/- per quintal on the basis of average sugar
recovery of Madhya Pradesh state i.e. 9.66%. This recovery was challenged by farmers
and samples were tested in third party laboratory. The recovery was found approx. 11.5%.
In meeting with farmers, mill owners and officers of sugarcane department, it was decided
that price of sugarcane will given Rs. 300/- per quintal accordingly mills have started
making the payments to the farmers @ Rs. 300/- per quintal. Up to May, 2018 approx. 85%
payments have been made to the farmers in M.P.
4. The cultivation of sugarcane in M.P. during 2017-18, was in approx. 1 Lakh
hectare area and mainly in districts Narsinghpur, Betul, Burhanpur, Chindwada, and
Hoshangabad & Datia. The main varieties of sugarcane sown are CO238, 261, 8014, 9011,
94012, Neera, 86032, 3102, 1008 and 1001. The crop is of 11-12 months duration and
sown in February/March and harvested from October to April. Both sugar mills & Khandsari
units do crushing of sugarcane from October to April every year.
 39

5. Govt. of M.P. supports farmers for the cultivation of sugarcane and following
efforts are being done to increase the productivity and profitability of farmers.
a) Introduction of subsidy on setting up of drip irrigation system has made feasible
the irrigation of crop sown in uneven land.
b) Use of high sugar recovery variety seeds of sugarcane increased the sugarcane
production.
c) Distance of 2-3 ft. between two rows of sugarcane increased tillering and scope of
multi-crop farming.
d) Nutrient management.
e) For the organic cultivation of sugarcane Govt. of M.P. provides subsidy to the
farmers @ Rs. 50,000/- per hectare.
f) At present average sugarcane production in first year is 55 ton per hectare and
ratoon (second year) crop gives production up to 62 ton per hectare.
g) Regional Krishi Vigyan Kendra (a ICAR centre), Powarkheda, Distt. Hoshangabad
has done excellent work for developing new sugarcane varieties suitable as per the climate
of M.P. and other R & D works for the production of value added products of Gur.

ii) Unit Visit and meeting with GM DTIC, Narsinghpur:

On dated 25-05-2018 officers of MSME-DI, Kanpur & Indore and General

Manager, DTIC visited M/s. Shiv Shakti Khandsari Udyog, Vill. & Post-Bahoripar Kalan,
Distt. Narsinghpur (M.P.) and observed the process of manufacture. License related
issues, problems of farmers, sugar recovery and improvements in the quality of product
were discussed in detail with proprietor and few farmers also joined the interaction. On
same day meeting was held at DTIC, Narsinghpur alongwith owners of Khandsari Sugar/
Gur units. Following suggestions were given by the participants during the meeting:-
a) Restriction of arial distance should be removed or it may be kept only 5 KM from
sugar mill as it is 15 KM at present. This restriction should be only for new units not for
existing units. For existing unit license is to be renewed every year, it requires NOC from
Sugarcane Department and many times it becomes difficult to get permission for the same.
b) Mandi Samiti Shulk which is 2% of the value of product i.e. Gur, should be
abolished.
c) Government should declare the minimum support price (MSP) for Gur/Jaggery, it
will increase the production of Gur and other value added products.
Some units producing Ethanol, Paper Board and Nutrient using the by- product
of sugar mills and Khandsari units i.e. Bagasse may be set up.
 40

D. Karnataka:

Officer of the MSME-Development Institute, Kanpur had discussion with Shri Sunil
Kumar Agarwal, Prop. of M/s Shiv Shakti Sugar Mill India (Pvt.) Ltd., Village & Post-
Bhangoor, Taluka & District- Bidar, Karnataka, Pin -585227. He informed about the
issues of Khandsari sugar/jaggery (Gur) Industries in the state of Karnataka. The details
are as under:-
1) In Karnataka License to Khandsari sugar manufacturing unit is granted by
Commissioner for Cane Development & Director of Sugar, Bangalore. It is renewed
every year before the start of season. Every year renewal may be waived off because of
procedural complications.
2) Payment of sugarcane to farmers of Karnataka is done according to FRP i.e. @
Rs. 255/- per quintal.
3) Process of harvesting and transportation is done both by sugar mills and
Khandsari units. Harvesting and transportation cost which comes around Rs. 50/per
quintal (up to the distance of 20 Kms.) is deducted from the payment made to the
farmers.
4) Highest sugar recovery varieties of sugarcane sown in Karnataka are
CO 8014 & 671. The average yield of sugarcane is 40 to 45 ton per acre. In Khandsari
sugar units average recovery of sugar is 8.5% per Qtl. of sugarcane.
5) Vacuum Pan Drying facility, should also be provided to the Khandsari Units so that
they can compete with sugar mills. Government can put a limit of 500 to 600 TCD for
Khandsari Units or can derive a formula based on the turnover of the unit. He told that
this sector is giving direct and indirect employment in rural sector and assist in uplifting
the living standard of farmers and people engaged in these units.
6) Khandsari Sugar/ Gur units make immediate payment to the farmers which attract
them to sell their crop to these units. These units are not capable to sell their product
immediately. To meet out the payment cycle these units need loan for working capital on
subsidize interest basis.
7) For the modernization & technical up-gradation of Khandsari units, loan may be
given at subsidized interest rate or subsidy upto 20% on capital investment may be
given.
8) Molasses which is the By-product of Khandsari sugar units should be exempted
from GST. At present it is 28%.
9) In the state of Karnataka, there is no restriction on distance parameter for
Khandsari sugar manufacturing units from the existing sugar mills. This practice may be
continued.
 41

Ministry of Agriculture & Farmers Welfare and Ministry of Consumer Affairs, Food &
Public Distribution, New Delhi.
Officers of MSME-DI, Kanpur visited, above cited ministries on dated 28-06-2018 and
collected the information pertaining to sugar industries for the preparation Techno-
Economic Feasibility Report on Khandsari Sugar/Gur.
1. Had meeting with Shri Raj Kumar, Joint Director & Shri Sube Singh, Asstt.
Director, Commission for Agricultural Costs & Prices (CACP), Ministry of Agriculture &
Farmers Welfare, Govt. of India, Shastri Bhawan, New Delhi and collected the list of
institutions engaged in the promotion of both Khandsari & Sugar Industries. They informed
that CACP collects the data on set parameters from States to calculate the FRP of
sugarcane every year.
2. CACP Division also organizes meetings with institutions engaged in the promotion
and development of Khandsari and Sugar industries.
3. In meeting with Shri Rameshwar Singh, Joint Director & Shri Ram Sajiwan, Dy.
Director, Directorate of Economic & Statistics (DES), Ministry of Agriculture & Farmers
Welfare, Govt. of India, details of the process of finalization of FRP & state wise data
related to area, production and yield of sugarcane were collected.
4. Another meeting was held with Shri Suresh Chandra, Dy. Director, Department of
Food & Public Distribution, Directorate of Sugar & Vegetable Oil, Ministry of Consumer
Affairs, Food & Public Distribution, Krishi Bhawan, New Delhi. During the discussion Mr.
Chandra provided data on valuable information like sugar production, sugar recovery
percentage and sugarcane crushing quantity state wise. He briefed about the status of
both Khandsari & Sugar industries and provided the copy of few reports prepared by his
division on Khandsari and Sugar Mills.
 42

6. Model Test Lab

For Testing of Khandsari Sugar and Jaggery (Gur) Products

In India, it is essential to comply ―The Food Safety and Standards of Authority of

India(FSSAI)‖ under the Food Safety Standards Act, 2006 for manufacturing of food
products. During discussion with the stake holders of Khandsari Sugar and Gur/Jaggary
manufacturing across U.P., M.P. and Maharashtra setting up of common testing facilities in
various regions came up as an important issue. These labs could be set in PPP mode with
one time assistance from Govt. of India and respective State Govts.

Although, quality of Khandsari sugar and Gur products is assured through the testing
for various parameters as mandated under FSSAI but it also depends upon the customer‘s
requirements. For holistic quality checks, there is need to have the complete facilities of
quality evaluations. Such laboratories are also required to be recognized by National
Accreditation Board for Testing and Calibration Laboratories (NABL) or an equivalent
accreditation agency as recognized by the Food Authority.

A. Land Building:
The infrastructure to be created depends upon the need and scope of testing. The
basic requirements of the laboratories are given below:

1. Sensory Laboratory
2. Physical Laboratory
3. Chemical Laboratory
4. Microbiological Laboratory
5. Toxic substance analysis Laboratory
6. Pesticides residues Laboratory

Laboratory having the competency to carry out the complete testing

as per the food safety standards regulations 2011 and Food Safety and Standards
(contaminants, Toxins and Residues) for Khandsari sugar & Gur udyog and such type of
laboratory is called referral Food Laboratory.

B. Technical Requirements
i. Chemicals and Glassware - All the laboratories need laboratory/analytical grade
chemicals, Glassware and other essential materials needed in the laboratory.
ii. Instruments - Khandsari and gur products may have elements contamination due
to many stages of processing of the end products. This contamination may also occur due
to agro practices of cultivation. To carry out the instrumental testing specially metal,
 43

microbiological, pesticides residual etc. needs highly sophisticated instruments

(chromatographic and spectroscopy etc.) with PPB level accuracy.
iii. Traceable Standards for Testing- To maintain the credibility of the testing
laboratory, accuracy is the prime factor for which laboratory need to have NIST / or other
standards for in house calibration as per the accreditation body norms is mandatory.
iv. Requirements of Calibration:
Laboratory can get their equipments/ instruments and glassware etc, calibrated from
the National Metrological Laboratory in the knowledge that the calibration is of
internationally traceable.

The Essential list of Instruments/ equipments, apparatus used in analysis are as

followed:-

1 Anemometer 22 Homogenizer
2 Bomb Calorimeter 23 Vacuum Oven
3 Laminar flow 24 Muffle Furnace
4 Atomic Absorption 25 Refrigerator
5 Spectrometer 26 Rotary Meter
6 Polarimeter 27 Shaking Incubator
7 Digital Refractometer 28 Mixer Grinder
8 pH Meter 29 Sonicator
9 Moisture analyzer 30 Soxhlet apparatus
10 Viscometer 31 Incubator
11 LC MSMS 32 Colony counter
12 Texture Analyzer 33 Laboratory crusher
13 Color Meter 34 Elisa Reader washer
14 Crude fiber assembly 35 Auto clave Centrifuge
15 Distillation assembly 36 Hot air oven
16 Deep freezer 37 Hunter cooler lab
17 Band Sealer with 38 Weighing Balance( Sensitivity
Nitrogen flushing according to the requirements)
18 Mechanical Jaggary drier 39 Laboratory sterilization
equipments
19 Titration assembly 40 Environment control chamber
20 Laboratory Hoods 41 Dehumidify fire
21 Laboratory Pumps 42 Water activity Meter
 44

C. Quality related Requirements:

i) Standard Operating Procedure/ Indian Standard (BIS):

To carry out the complete testing of Khandsari sugar and gur etc. Indian standard
specification or Standard Operating Procedure (SOP) manual is required. The present
method IS 13953: 1994 Khandsari , Amendment No.1 July 2002 is applicable . Clause
5.2.1 in the said standard under the BIS Certification Marking, product may also be IS
Marked as per the 5.2.1.1 clause. The details of conditions under which the license for the
use of Standard Mark may be granted to manufacturers or producers may be obtained from
the Bureau of Indian Standards. The other related BIS are given below:

IS 13953 : 1994 Khandsari

IS 12923 : 1990 Jaggery
IS 8124 : 1976 Code for hygienic conditions for sale of sugar cane juice
IS 1973 : 1999 Sugar cane crushers (Third Revision)
IS 11204 : 1985 Sugar Cane Harvesting
IS 11201 : 1985 Cane crushing roller for sugar industries

Laboratory should have sufficient qualified, trained and experienced staff to carry out
the testing jobs under the testing scope. Similarly, there should have sufficient and suitable
instruments / equipments and related accessories to carrying out the analysis as per the
standard procedure.

ii) Testing Parameters:

Testing details of the Khandsari Sugar and Gur products depend upon the
taste of customer but over all following parameters will be taken in to consideration.

Khandsari Sugar Testing

General Parameters

Physical examination for moulds, living and dead insects, insect fragments and rodent
contamination(hair, excreta) visible to the naked eye

Test for iron filings

Test for added color (Natural and Synthetic)

Quality Parameters

Extraneous matter
 45

Khandsari Sugar (Sulphur Sugar)

Moisture (when heated at 105° ± 1° C for 3 hours)

Ash insoluble in dilute hydrochloric acid

Sucrose

Test for sulphur dioxide

Khandsari Sugar (Desi)

Moisture (when heated at 105° ± 1° C for 3 hours)

Ash insoluble in dilute hydrochloric acid

Sucrose

Test for sulphur di oxide

Khandsari Sugar can be distinguished from plantation White Sugar on the Following
Characteristics, Namely:

Khandsari Sugar (Sulphur Sugar)

Conductivity (106 mho/cm2)

Calcium oxide (mg/100gms)

Khandsari Sugar (Desi)

Conductivity (106 mho/cm2)

Calcium oxide (mg/100gms)

Jaggery (Gur) Testing Details

General Parameters

Physical examination for moulds, living and dead insects, insect fragments and rodent
contamination(hair, excreta) visible to the naked eye

Test for added colour (Natural and Synthetic)

Test for sulphur dioxide

Quality Parameters

Moisture

Total sugars expressed as invert sugar

Extraneous matter insoluble in water

Total ash
 46

Ash insoluble in hydrochloric acid (HCl)

Metal Contaminants

Lead

Copper

Arsenic

Mercury

Methyl Mercury calculated as the element

Tin

Zinc

Crop Contaminants and Notes

Total aflatoxin

Agaric acid

Hydrocyanic acid

Hypericine

Saffrole

D. Cost of setting of Laboratory -

S. No. Particulars Cost ( in Lakh)

A Infra structure
i Land & Building Built up Area – 500 Sqr. mtrs 150
B Technical
i Instrument and Equipments 200
ii Consumable (Glassware’s and chemicals) 15
Iii Manpower : 1 Chemist/Sugar Technologist 20
: 2 Lab Assistant
: 2 Assistant
: 1 Accountant/Store
: 1 Computer Operator
: 1 Security Guard
iv NIST Traceable Standards (all testing) etc. 20
Total cost ( in Lakhs) 405.00
 47

7. Model Project Report

on
Khandsari Sugar with Steam Generating Plant

Project at a glance
PRODUCTS : 1. Khandsari Sugar 2. Rab (Massecuite)

QUALITY & STANDARD : FSSAI License & Khandsari Sugar Manufacturers

Licensing Order are mandatory.

PRODUCTION CAPACITY: Installed Plant Capacity: 600 TCD (Tonnes of Cane per
Day)
Average Capacity Utilization: 500 TCD

Item Capacity (per annum in MT)

Khandsari Sugar 8100

Raab 4500

COST OF THE PROJECT:

Fixed Capital Investment : (Rs. in lakh)

Land : 48.00
Building & Others : 262.00
Machinery & Equipments : 800.00
Misc. Equipments, Lab., Pollution, Office : 75.00
and forwarding charges
Erection & Electrification : 40.00
Preliminary & Pre-operative Expenses : 75.00
Total 1300.00
Working capital for 1 month : 202.45
Total Cost of the Project 1502.45
Financial Analysis :
Turn Over Per Annum : 2975.50
Profit Per Annum : 270.14

Net Profit Ratio on Sales : 09.08%

Rate of Return on Total Capital Investment : 17.98%

Break Even Point : 53.83%

 48

Khandsari Sugar with Steam Generating Plant

A) Introduction:

Khandsari Sugar is produced from Sugarcane Juice by Open Pan Process. There are
two varieties of Khandsari Sugar viz. Khandsari Sugar Desi which contain minimum 93%
sucrose and other one is Khandsari Sugar (Sulphur Sugar) contains minimum 96.5%
sucrose. It is estimated that only 50 Khandsari Sugar manufacturing are functional in the
country at present. In Uttar Pradesh 1057 units have obtained License under Khandsari Act
1967, out of them only 157 are in working. Out of 157 Khandsari units, 25 units are
Khandsari sugar (Both Sulphur and Non Sulphur) manufacturing where as remaining are
engaged in the manufacturing of Jaggery/Gur. In the State of Maharastra out 10 units have
been given Khandsari license out of which only 4 units are working and manufacturing
Khandsari Sugar. In Madhya Pradesh there are 6 Khandsari Sugar units. Whereas in
Gujarat and Karnataka there are 02 functional Khandsari Sugar units each.

The process of juice concentration differentiates Khandsari Sugar and Mil Sugar. For
Khandsari Sugar it is Open Pan Drying where as for Mil Sugar it is Vacuum Pan Drying.
The Vacuum Pan Drying Process gives Sugar recovery is to the tune of 11-14% where as
Sugar recovery for Open Pan Drying process ranges 7-9%.

This report has been prepared with the Installed capacity of sugarcane 600 TCD
(Tonnes of Cane per Day) with modern sulphitation process by steam generating plant.

B) Market Potential:

1. The price of Khandsari sugar is Rs.100 to 300/- per quintal less than the sugar
produced by the sugar mills. Khandsari sugar is mostly used in sweet making, in
Pharmaceuticals /Ayurvedic for syrup making, Squash & Beverages. It is also consumed
as a basic raw-material in the micro type bakery industry for making Sweet & Salty
biscuits and Cakes. It has major market in rural as well as slum areas.
2. There is a surplus production of sugarcane in the country being a major cash
crop for farmers. Also sowing of high yield variety of sugarcane has increased sugar cane
production. The abundance of sugar cane creates ample opportunity for successful
running of Khandsari Sugar units with latest technology.
3. Khandsari sugar units are situated mostly in rural areas and provide good
support to Sugar cane growers by providing them alternative market other than Sugar
Mils and Jaggery (Gur) manufacturers. It is not out of context to mention Jaggery (Gur)
 49

manufacturers offer very low price to sugar cane. Khandsari sugar units also provide
large number of direct and indirect employment to the rural population and in turn
deserve to have Government support.
4. Khandsari sugar units purchase the crop of both small & large sugarcane
growers. Small growers are not registered under the schedule of sugar mills hence they
have no other option but to sell their crop to Khandsari sugar/Gur units.
5. Khandsari sugar units make the payment immediately to the sugarcane farmers
which provide them financial relief to meet out their recurring expenses whereas many
times sugar mills are not able to make the immediate payment of sugarcane.
6. The Govt. has exempted Khandsari sugar from GST, hence it becomes easy for
Khandsari sugar manufacturers to compete with sugar mills in open market.

C) Production Capacity (Per Annum):

Item Qty. Rate/ ton Value

(in MT) (in Rs.) (Rs. in lakh)
Khandsari Sugar 8100 33500 2713.50
Rab 4500 5000 225.00
Press Mud LS 7.00
Bagasse LS 30.00
Total 2975.50

D) Basis & Presumptions:

The following Basis & Presumptions have been taken into consideration for setting up
of Khandsari Sugar Manufacturing Unit:
1 The unit shall be having installed crushing capacity of 600 TCD.
2 As Khandsari sugar would have seasonal business during 06 months in a year
i.e. 180 days and the unit will run on 3 shifts basis with 80-85% capacity utilization of the
Plant & Machinery.
3 In this report the recovery of Khandsari sugar has been calculated as 9% and 5%
Rab of the weight of sugarcane. Press Mud and Bagasse will also be sold by the unit and
its value has been calculated on lump sum price basis.
4 The cost of plant & machinery and equipment indicated refer to a particular make
and prices are approximate prevailing at the time of preparation of project.
5 Depreciation has been taken as-
i) On building (built of area) @ 5% per annum.
ii) On machinery and equipment @10% p.a.
iii) On office equipment & furniture @ 10%
iv) On laboratory equipments and other miscellaneous @ 10%.
6 Interest on capital investment has been taken @12% p.a.
 50

7 For smooth functioning, the unit needs to have sufficient stock of sugarcane.
8 The cost of raw-materials and packaging material has been calculated on the
basis of prevailing market rate.
9 The price of sugarcane has been taken as the price declared by Central Govt. as
Fair Remunerative Price (FRP) for 2017-18.

E) Production Process:

a) Traditional Manufacturing Process:

In traditional Khandsari industry, sugar manufacturing involves four basic steps i.e.
Juice extraction, purification, concentration by open pan boiling and Solidification of
concentrated juice

Following the crushing of the sugar cane (using animal power), clarification of cane
juice is done by simple mucilaginous extracts of vegetable plants. The extract is gradually
added in the heated juice just before it starts boiling and scum rises to surface, which is
removed by a perforated ladle leaving clear and transparent juice in the heating pans. The
clear juice is concentrated in open pans till the boiling mass attains a temperature of 106°C
and the massecuite (rab) produced is allowed to crystallize. The sugar recovery in this
traditional process is about 5.5%. Today this process is being practiced is some units of
smaller capacities only.

1. Juice Extraction:

In traditional process, grinding was used for juice extraction. Cane were cut into small
pieces and kept in a mortar made of stone. A large tree trunk served as a pestle for
grinding the cane pieces. The pestle could be moved inside the mortar with the help of
bullocks or camels. Later, the technique of crushing evolved to a two roller/ three-roller
assembly, vertically driven by bullocks or buffalos. The roller could be moved by a rod
connected at the top of roller by one end and attached to wooden rectangular frame at
other end in order to pull it with pair of bullocks or the buffalo or some times by man also. It
is worth mentioning here that all the equipment required for extraction of juice were
available at villages. Local artisans like blacksmith and carpenters could fabricate the
equipment. In modern Khandsari industry, mechanical rollers do same process that was
carried out initially with wooden rollers or village-made iron rollers. Extraction of juice can
be improved by using horizontal three roller mills using hydraulic pressure on mills. The
milling tandem should contain two or three mills, each of three rollers. It reduced the
moisture content in the bagasse and loss of the sugar in bagasse.
 51

2. Juice Purification:

In the traditional process, the purification of juice was carried out by addition of locally
available clarificants in villages. The mucilaginous extract of various clarificants was
prepared either by taking out bark or by taking lower portion of the tree etc. or using green
stems and then soaking it in water for 24 hours. The bark is then rubbed with hand till thick
mucilaginous extract comes in water. Sometimes, the bark of roots has to be crushed. The
crushed material is left in water for some time and then rubbed by hand to give a thick
mucilaginous extract. Few clarificants and process of preparing extracts are described
below.

(a) Deola (Hibiscus Ficulneus)

(b) Bhindi (Hibiscus Esculentus)
(c) Sukhlai (Kydia Calycina)
(d) Bark of Semal (Bombax Malabaricum )
(e) Bark of Falsa Tree (Grewia Asiatica)
(f) Groundnut (Arachis Ypogea)
(g) Castor Seed (Ricinus Communis)

The clarification efficiency in the descending order is as follows:

Deola, Groundnut, Bhindi, Semal, Falsa, Sukhlai and castor seed.

The vegetable clarificants have albumin, which coagulates on heating. This

coagulated mass encloses dehydrated colloids, coagulated colloids, protein matter of juice
and rises to the surface in boiling juice and forms scum. This scum is removed by means of
bamboo sticks or wooden sticks (ladles). The correct quantity of clarificants is judged when
scum at the top of the juice becomes white. The village technicians have an excellent idea
of the correct time of addition of clarificants. The overflow of rising scum is avoided by
sprinkling water or emulsion of castor seed .

The traditional Indian technicians, who started Khandsari manufacturing in Indian

villages centuries back, had no knowledge of the organic chemical composition of reactions
involved. The development of technology of clarification was available to the villagers, by
trial of large number of vegetable extracts.

Elimination of undesired clarificants and selection of most suitable clarificant was

done by villagers over generations.
 52

3. Juice Concentration by Open Pan Boiling:

There are several different configurations of boiling pans for concentration of

sugarcane juice by open pan (in round bottom vessel called ―bel‖ in local language) boiling,
e.g. Meerut bel, Rohelkhand bel, and Standard bel. Meerut bel and Rohelkhand bel. They
differ from each other in number of pans used for heating and orientation of pans. There
are no technical reasons for the variation/ orientation. These bels were developed locally
independent of each other, based on experience.

The juice after clarification is transferred by means of Pauna (Ladle) to the round
bottom bels. These bels are heated by firing bagasse (locally known as khoi) in the
furnace. The juice is heated to 96-98°C and then concentrated at temperatures between
105-106°C in various pans.

4. Solidification of concentrated Juice:

The solidification and crystallization of the concentrated juice is done in

crystallizers. The crystallizers used in traditional process deliver non-uniform crystals of
sugar. This sugar is generally of lower quality visually and fetches lower price in the market
.

b) Improvements in Traditional Khandsari Process:

The recovery of Khandsari sugar is as low as 5.5 % in the traditional process. The
sugar recovery can be enhanced by adopting the following modifications in the traditional
Khandsari industry. It is noteworthy that most of these improvements have been
implemented by Khandsari industry leading to enhanced sugar recovery up to 7- 9 %.

1. Extraction:

The extraction of juice in the Khandsari sugar industry ranges from 55-65%. The
industries were advised to carry out the following modifications:

i) Using improved design of crushers

ii) Using hydraulically loaded mills.
iii) Using 3 or 4 set of mills consisting of 3 rollers each.
iv) Installing knives for preparation of cane.
v) Using imbibitions (sprinkling water) at last or last but one mill for extraction of
juice. This device will also reduce the loss of sugar in bagasse and consequently help in
increasing recovery of Khandsari sugar.
 53

2. Process Improvements:

i) Using SO2 gas and limewater as clarificants instead of plant origin clarificants.

ii) Use of settling agents for faster settling.

iii) Use of filter press to reduce the loss of sugar in filter cake (Press Mud).
iv) Using crystallizers with stirrer. This has helped in faster crystallization of sugar
and improved uniformity in sugar crystals. The sugar produced after this improvement was
of such uniform quality that it was difficult to differentiate between the Khandsari sugar and
mill sugar. This sugar fetches almost the same price as mill sugar.
v) Using seeding technique, rate of crystallization could be increased.
Cutting of crystallized massecuite will help in making bolder grain Khandsari sugar
hence better exhaustion of mother liquor.

3. Improved Sulphitation Process:

The improved process is simplified form of single sulphitation process, as employed

in vacuum pan process of sugar mills. As a result, it is now possible to get a recovery of 7
to 9 % sugar in cane of average quality. The first quality sugar produced using this process
is quite comparable with vacuum pan process, used in sugar mills.

The cane is usually crushed in a power mills and the cold raw juice is received
alternatively in two underground tanks in the mill house. This juice, which is acidic (pH 5.2-
5.4), 15° Baume milk of lime is added, at a rate of 12 part per 1000 parts of juice by volume
and the pH of the juice is raised to 10. The density of the milk of lime used is adjusted
accurately to 15° Baume using a Baume Hydrometer. With addition of milk of lime in the
given proportions, pH of the juice rises as the natural free organic acids are neutralized and
juice becomes alkaline.

The juice is then sulphited in a sulphitation tank, after being pumped from the
underground tanks. In the sulphitation tank, sulfur-dioxide gas is passed in the juice from
the bottom till the pH of the juice becomes 7.0 ± 0.1. The sulphur is burnt in a special
furnace with the help of an air compressor using atmospheric air and the SO2 gas is
produced. The gas is made to bubble through the juice in the sulphitation tank through a
perforated coil located in the bottom of the tank at a high pressure until the pH of the juice
is reduced to 6.8-7.0. It is observed that for about 1 ton of juice, it takes about 15 minutes
to bring down the pH in desirable limits. The main purpose is to produce maximum quantity
of precipitate. Strips of BTB (Bromo Thymol Bue) indicator paper are used for finding the
pH.
 54

After neutralization, the juice is heated to 100°C i.e. the cracking point (temperature
at which the layer of scum at the surface of the juice begins to crack) in the round bottom
pan of the bel and then pumped into the settling tanks. Here the impurities are allowed to
settle down to the bottom leaving a supernatant layer of clear juice. The time required for
settling is approximately 45 minutes. The clear juice is drawn off in the tank by means of
suitable cocks placed at different levels and is allowed to flow into standard bel for being
concentrated to rab (Massecuite). The muddy juice remaining at the bottom of the settling
tank is pumped to filter presses for filtration for the recovery of any sucrose, which might
otherwise be lost with the mud. The bag filter/ filter cloth is thoroughly washed by passing a
small quantity of hot water through them. The filtrate from these bag filter press and the
washings are directed into the standard bel for being mixed with the rest of the clear juice.
The concentration of juice to rab is done in the standard bel in the usual way. The rab
(106°C) is then transferred to crystallizer and allowed to remain there for about 36 hours for
the growth of crystals. The crystallizers are fitted with special stirrers rotating slowly (3
RPM) continuously for the formation and growth of crystals. When the rab has cooled down
to room temperature after about 36 hours and is fully mature, is taken to centrifuge
machine, known as centrifuge for separation of crystals from the molasses. This process is
known as ‗Purging‘. Crystals are slightly washed with water in the centrifuge. The
separated crystals are dried and bagged as first quality sugar.

The mixture of heavy and light molasses obtained after the separation of the crystals
from the first rab is called ‗first molasses‘. This is again boiled to give second rab. The
second rab is allowed to cool and mature in crystallizers, which are also fitted with stirrers
but these crystallizers are smaller in size. The second rab takes about 60-70 hours to
mature and cool down to room temperature. The sugar separated from the second rab by
centrifuging is sun dried and bagged as ‗second sugar, which is slightly inferior to the first
sugar. The mixture of heavy and light molasses resulting from the purging of the second
rab is known as ‗second molasses‘. This is again boiled in the bels in the usual way to give
third rab. This being poor in sugar content does not permit crystallization for the production
of third sugar. It is therefore cooled and stored to crystallize in underground-aerated tanks
for a period of 4-6 weeks and then third sugar is recovered. The third sugar thus produced
is brown in color and is bagged in usual way after sun drying on ‗Patta‖ (Coarse hessian
cloth). The resulting molasses is known as ‗final molasses‘, which is disposed off as by-
product.
 55

Sometimes the sugar is very moist and cannot be dried by sun in over-cast
conditions. In such conditions, a drying set-up is used. This set-up uses a bagasse-fired
furnace to heat atmospheric air. This hot air is passed over moist sugar and it dries the
sugar. The dried sugar is then bagged.

The average consumption of chemicals & raw materials in a Khandsari industry is

given below. The figures are on percentage basis and are based on the quantity of the
cane crushed.

1. Lime 0.25% w/w

2. Sulfur 0.05% w/w

3. Castor seed 0.02% w/w

4. Filter Cloth 0.4% w/w

5. Power 20 KWH per ton of cane crushed

6. Fire wood 10% w/w

7. Gunny Bags 7.5% w/w

 56

Flow Process Chart for Khandsari Sugar Production

Raw Juice

SO2 Gas Juice Sulphur Milk of lime


(12-15 Be, 1.2-1.5%v/v)

Sulphited Juice pH=7.0-7.1

Boiling Bel

Heated Juice (Temp=1000C)

Filters Muddy Settling Tank

Juice

Filtered Juice Clear Juice

Mud

Standard Bel Raab Crystallizes

Khandsari
Final Molasses Centrifuge Sugar
 57

F) Quality Specifications:

1. The product must meet the FSSAI Standards and the details are given below:

(i) Khandsari Sugar Desi; and

(ii) Khandsari Sugar (sulphur) also known as ―Sulphur Sugar‖.

It may be crystallized or in powder form. It shall be free from dirt, filth, iron filings and
added colouring matter. Extraneous matter shall not exceed 0.25 per cent by weight. It may
contain sodium bicarbonate (food grade). It shall also conform to the following standards,
namely:-

Description of Khandsari Sugar Khandsari Sugar (Desi)

Specifications (Sulphur Sugar)
(i) Moisture (when Not more than 1.5 percent Not more than 1.5 percent by
heated at 105°+10°C for 3 by weight. weight.
hours)
(ii) Ash insoluble in dilute Not more than 0.5 percent Not more than 0.7 percent by
hydrochloric acid by weight. weight.
(iii) Sucrose Not more than 96.5 Not more than 93.0 percent by
percent by weight. weight.

The product may contain food additives permitted in these Regulations.

Description of Khandsari Sugar Khandsari Sugar (Desi)

Specifications (Sulphur Sugar)
(i) Conductivity 100-300 in 5% solution at Not more than 100 in 5%
(106 mho/cm2) 300°C solution at 300°C
(ii) Calcium Oxide Not more than 100 Not more than 50
(mg/100gms)

2. For setting up Khandsari sugar unit it is essential to get License from

the competent authority designated by the State Govt. for Khandsari licensing.

G) Pollution Control Measures:

i. The unit is to get ―No Objection Certificate‖ (NOC) from the State Pollution
Control Board, where the Khandsari sugar unit is proposed to set up.
ii. Boiler clearance is also required from the O/o Chief Inspector of Boiler.
 58

H) Energy Conservation Measures:

1. Star rated electrical motors and accessories to be used in Khandsari sugar

plant.
2. Use of proper insulating material and timely maintenance of boiler and
steam piping can save lot of thermal energy.
3. In sugar crushing section, lot of moving parts including gears is involved.
Periodical maintenance and proper lubrication will save energy.
4. Use of LED light will reduce lighting load.
5. The installation of Roof Top Solar Panels and other open unused areas will
also be a step forward for extra clean energy generation.

I) Financial Aspects:

I. Cost of Land & Building: (Rs. in lakh)

Sl. Description Value

No.
1. Land 6 acres @ Rs.8.0 lakh per acre 48.00
2. Built up area –
i. Weighing, crushing and processing area
ii. Raw material, stock godown, packaging material 250.00
godown etc.
iii. Office, Laboratory, Rest room for workers, canteen etc.
Total area 5000 sq.mtr @ Rs. 5000/ sq.mtr.
3. Contingent- water boring and water storage tank, boundary 12.00
wall, gates & safety measures etc.
Total: 310.00

II. Cost of Machinery & Equipment: (Rs. In lakh)

Sl. No Particulars of Machines Qty. Rate Amount
(Nos.)
1. Weighing of raw sugarcane :
i. Electronic Weighing of raw sugarcane m/c 1
with complete accessories, digital meter
reader including all accessories.
2. Cane handling & preparation plant:
i. Primary cane carrier- slate type and less No. of
set As
apron of conveyor system and complete with per
head shaft, tail shaft, idler supports, staging, requirem
ent
runners and sprockets
ii. Drive assembly for above cane carrier, -do-
complete with electric motor and gear box,
sprockets and chain etc.
iii. Belt Conveyer system complete electrical -do-
drive, assembly with gear box.
 59

iv. Rake type 2nd cane carrier complete with -do-

heavy runner, sprockets, block type forged
steel chain with electric drive assembly
v. Auto cane feed controller for carrier system -do-
vi.
Cane chopper with swing radius 1000 mm -do-
with complete with drive
vii. Cane cutter with knives with electrical -do-
accessories.
3. Cane Milling Plant :
i. Headstocks, roller for mills complete Mill -do-
assembly alongwith Feeder Rolls.
ii. Hydraulic system for the crushers -do-
iii. Drive gears & pulley sets assembly for the -do-
mills.
iv. Toothed Roller Pressure Feeder (TRPF) -do-
system for the 4 mills without drive.
v. Drive assembly for TRPF -do-
vi. Rake type intermediate carrier wide system -do-
for mill centres
vii. Staging, plate form etc for Mill House. -do-
viii. Lubricating Devices for the Milling Tandem -do-
ix. Motors for mill pumps in mill house, cane -do-
carrier, rake carrier
x. Pumps in mill house
a) Choke less unscreened juice mill -do-
b) Screened juice pumps -do-
c) Imbibitions juice pumps -do-
d) Imbibitions water pumps -do-
xi. Piping fitting & Valves in Mill House -do-
xii. Dutch State Mines (DSM) screen with screw -do-
Conveyor
xiii. Whirler Tanks & Gutters in Mill House -do-
4. Bagasse Handling System :
i. Bagasse elevator with rough, sliders and -do-
driving arrangement
ii. Return Bagasse feeder -do-
5. Steam Generating Plant:
i. Boiler capacity 15 Tons/hr. 1 unit
Steam pressure 32 Kg/cm2g
steam temperature 3850C+100C
Complete with Induced Draft( ID) Fan,
Forced Draft (FD) Fan, feed pumps,
economizer, air heater, fly ash arrester etc.,
ii. Concrete chimney 1 No.
iii. Demineralization (DM) Plant 1 Unit
 60

iv. Pressure Reducing and Desuper Heating Access

System (PRDS) unit complete with staging, ories
injection.
v. Water pumps and compressor, Piping etc. Access
ories
6. Turbo-Alternator Set :
i. Complete turbine , gearbox, alternator and No. of
set as
control panel per
required
size
ii. a. Indian Boiler Regulations (IBR) Turbine -do-
Inlet & Exhaust System, Fitting Valves,
Traps Header Separator etc.
b. Engg. & Designing of IBR piping
7. Boiling House Equipments:
i. Raw juice receiving tank 1 No.
ii. Raw juice supply pumps 2 Nos.
iii. Raw juice heaters 2 Nos.
iv. Juice Sulphitation towers, sulphitor 4 No.
v. Sulphited juice receiving tank 1 No.
vi. Sulphited juice pumps 2 Nos.
vii. Sulphited Juice Heater 2 Nos.
viii. Condensate bottles for juice heater 2 Nos.
ix. Condensate pumps for juice heater 2 Nos.

x. SS tubes for juice heaters, thick and long 600

Kg.
xi. Juice clarifier & accessories, tray less 1 Nos.
system with accessories
xii. Clear juice tank 1 No.
xiii. Clear juice pumps 2 Nos.
xiv. Milk of lime plant
a. Lime slacker 1 Set
b. Lime classifier -
c. Mol tank with stirrer 2 Nos.
d. Lime Pumps 2 Nos.
e. Lime dosing system 1 Set

xv. Muddying juice handling pumps 1 No.

xvi. Muddy juice treatment tank 1 No.
xvii. Filtration Plant
a) Rotary drum vacuum filter 1 No.

b) Vacuum Pumps 2 Nos.

c) Filtrates Pumps 2 Nos.
d) Filtrates receivers made for SS 1 No.
 61

e) Condenser 1 No.
f) Moisture traps 1 No.
g) Sealing tank 1 No.
h) Piping and valves As
required
i) Wash water pump 1 No.

j) Mud overflow tank with stirrer etc. 1 No.

xviii. SO2 Gas generation plant :
a) Sulphur burner suitable for burning of 2 Nos.
sulphur per hour
b) Air Blower 2 Nos.
c) Moisture absorber/ air dryer 2 Nos.

d) SO2 scrubber, cooler and piping, 2 Sets

valves etc.
xix. Triple effect pressure evaporator :
a. Calandrias 3 Sets
b. Vapors bodies for evaporator 3 Sets
c. Catchhall for evaporators 3 Sets

d. Condensate bottles 3 Sets

e. Inter connecting pipes As
required
f. Staging structures & platforms As
required
g. Condensate pumps 5 Nos.
h. Syrup receiving tank 1 No.

i. Syrup supply pumps 2 Nos.

j. SS Tubes As
required
xx. Concentration Plant :
a. Concentrators (Bare charges) 5 Nos.
b. SS Tubes As
required
c. Condensate bottles 4 Nos.
d. Condensate pumps 6 Nos.

e. Staging Structure & Platforms As

required
xxi. Pining & Fitting for Boiling House:
a. Pining & Fitting For Boiling House As
required
b. Valves for boiling House As
required
c. Jointing sheets for H.P. & L.P. As
Services required
d. Hardware, Nuts & Bolts etc. As
required
e. Gases & Welding Electrodes As
required
 62

f. Diesel & Kerosene As

required
8. Centrifugals & Sugar House :
i. Centrifugal Machines 8 Nos.

ii. Molasses Receiving Tanks 3 Nos.

iii. Sugar Conveying Plain Hoppers 1 No.

iv. Sugar Dryer Multi Tray 2 Nos.

v. Air Blowers 3 Nos.

vi. Heat Exchanges 2 Nos.

vii. Sugar Elevators 3 Nos.

viii. Sugar Grader 2 Nos.

ix. Crystallizers As
required
9. Water & Condensate System
i. Over Head Hot Water Services Tank 1 No.
ii. Over head cold Service Tank 1 No.
iii. Underground Cold water Reservoir 1 No.

iv. Central Condensate Holding Tank 2 Nos.

v. Treated Water Holding Tank 1 No.
vi. Central Condensate Pumps 1 No.
vii. Tube Wells 2 Nos.

viii. Tube Wells Pumps 2 Nos.

ix. Piping Fitting & Valves As
required
x. Staging Structure for Over Head Tank As
required
10. Crystallization Section :
i. Crystallization for 1st Rab 45 Nos.
ii. Crystallization for 2nd Rab 25 Nos.
rd
iii. Crystallization for 3 Rab 15 Nos.
Sub Total: 800
11. Misc. equipments i.e. DG Set, drums, tray etc. 10
12. Laboratory Equipments 8
13. Pollution Control Equipments 8
14. Office Furniture & Fixtures 9
15. Packaging, Forwarding, GST, Insurance charges @5% 40
16. Electrification & erection of Machine charges @5% 40
Sub Total 115
Total 915
 63

III. Fixed Investment: (Rs. in lakh)

Sl. No Description Amount (Rs.)

1. Land & Building 310

2. Machinery & equipments 915
3. Preliminary & Pre-operative expenses i.e. Project 75
preparation, legal expenses, travelling expenses during
implementation of the project, trail production, Interest
loan on Terms loans during erection period, anticipated
escalation towards cost of machinery & equipments
etc. @10%
Grand Total 1300

IV. Working Capital (Per Annum):

a. Salary & Wages: (Per Annum)

Sl. No. Designation No. Rate Month Total

Rs. (Rs. In lakh)
1. Manager 1 50000 12 6.00
2. Plant Engineer/Chemist 4 30000 12 14.40
3. Cashier/Accountant 1 20000 12 2.40
4. Supervisor (Cane) 3 15000 12 5.40
5. Senior Mechanics 3 15000 12 5.40
6. Assistant Mechanics 3 12000 12 4.32
7. Electricians 3 12000 12 4.32
8. Clerk (Office/Weighing) 3 12000 06 2.16
9. Skilled /Semi-skilled workers 20 12000 06 14.40
10. Unskilled Workers 35 9000 06 18.90
Sub-total: 77.70
11. Perquisites @10% 7.77
Total: 85.47

b. Raw Material Requirement: (Per Annum)

Sl. No. Description Qty.(in Rate (Rs./per ton) Value

tones ) (Rs. In lakh)
1. Sugarcane 90000 2550/per ton 2295.00
2. Chemicals, Consumables LS - 20.00
& Packaging Material
Total: 2315.00

c. Utilities (Per Annum):

Sl. No. Description Value

(Rs. In lakh)
1. Diesel, Mobil Oil & Other consumables & water 10.00

Total : 10.00
 64

d. Misc. Expenses (Per Annum):

Sl. No. Description Value

(Rs. In lakh)
1 Postage & Stationery
2 Telephone
3 Consumable Stores
4 Repairs & maintenance` 20.00
5 Local Transports, loading and unloading
6 Advertisement and publicity
7 Insurance
8 Sales expenses
Total: 20.00

e. Total Working Capital requirement (Per Annum.):

1 Salary & Wages 84.47

2 Raw Materials & Packaging material 2315.00
3 Utilities 10.00
4 Misc. expenses 20.00
Total: 2429.47

f. Working capital for 01 month only 2429.47/12 = Rs. 202.45 Lakh

V. Total Capital Investment: (Rs. in Lakh)

I. Fixed Investment 1300.00
II. Working Capital for 1 months 202.45

Total: 1502.45

J) Financial Analysis:

i) Cost of Production (Per Annum) (Rs. in Lakh)

Sl. No. Particulars Value

1. Recurring Expenditure 2429.47
2. Depreciation on Building & others @ 5% pm 13.10
3. Depreciation on Machinery & Equipment @ 10% 80.00
4. Depreciation o laboratory, furniture & others @ 10% 2.50
5. Interest on Total Capital Investment @ 12% pm 180.29
Total: - 2705.36
 65

ii) Turnover (Per Annum)

Item Qty./ton Rate/per ton Value

(In Rs.) (Rs. In lakh)
Khandsari Sugar 8100 33500 2713.50
Rab 4500 5000 225.00
Press Mud LS 7.00
Bagasse LS 30.00
Total 2975.50

iii) Net Profit (Per Annum) Before Taxation:

(Rs. In lakh)

Turn Over - Cost of Production

= 270.14
2975.50 - 2705.36

iv) Profit Ratio on Sales (Per Annum):

Profit/annum X 100 270.14X 100

= 9.08 %
Turnover/Annum 2975.50

v) Rate of Return (Per Annum):

Net Profit/annum X 100 270.14 X 100

= 17.98%
Total Capital Investment 1502.45

vi) Break Even Point (B.E.P.):

Fixed Cost: (Rs. In lakh)

1. Depreciation on Building & others @ 5% pm 13.10

2. Depreciation on machinery & equipments @ 10% 80.00
3. Depreciation o laboratory, furniture & others @ 10% 2.50
4. Interest on Capital Investment @ 12% p.a. 180.29
5. 40% of Salary & Wages 31.08
6. 40% of other expenses 8.00
Total:- 314.97

B.E.P. -

Fixed Cost X 100 314.97 X 100

= 53.83 %
Fixed Cost + Profit 314.97 + 270.14
 66

Names of Machinery & Equipment Suppliers:

1. M/s O.P.Shukla & Associates 5/441, Viram Khand, Gomti Nagar, Lucknow-226010
0522-2725167, 9415086924, 7999832072, E mail: opshukla-shukla@gmail.com
2. M/s Super Tech. Engineers opposite new Rana Rolling Mill, Near Shandhabali
railway Crossing, U.P
Mr. Sanddep Rathi, 9837545999, Email: rathi_sandeep68@yahoo.com
3. M/s Technochem Projects and Technologies, UPSIDC, M.G. Road, Ghaziabad
(U.P.) Mob.:08071803505
4. M/s Nilasons Group of Industries, Pune (Maharashtra).
Mob. 9881394360, 9823729044
5. M/s Hycom Process Private Limited, Sai Vihar No. 3, Survey No. 71/A, Near
PCMC Gardeo Pune - 411361 Maharashtra(India) Mob. 09922112258
6. M/s Moon Sun Group of companies, Vidurkuti ganj road, Bijnor – 246701
(UP), Mobile :+91- 9412217161Email : moonsun695@yahoo.com
7. M/s Vijay Agro Industries, Jadhav Chintaman(Proprietor), Gut No. 215, Post
Kasbe Sukene, Taluka- Niphad, Nashik - 422302, Maharashtra, India.
Mob. 08071805969 , Telephone: +91-2550-279236 +91-2550-279010
8. M/s Excel Plants & Equipment Private Limited, Gat No. 611, Mouje Kuruli, M. I. D.
C. Chakan Pune - 410501 Maharashtra (India) Mob. 08071681616
www.excelplants.com

References:
Process improvement in Khandsari research paper published by IIT Kanpur, NSI Kanpur and CPCB Kanpur.
 67

8. Model Project Report

on
Jaggery (Gur)

Project at a glance

PRODUCTS : Jaggery (Gur)

QUALITY & STANDARD : FSSAI License & License from the State Govt.

PRODUCTION CAPACITY : (Per Annum) Installed Plant Capacity: 90 TCD (Tonnes

of Cane per Day) Average Capacity Utilization: 75 TCD

Item Qty./ton

Jaggery (Gur) 1755

Cost of the Project (Rs. In lakh)

Fixed Investment :
Land : 32
Building & Others : 160
Machinery & Equipments : 51.60
Misc. Equipments, Lab. Pollution, Office : 11.58
and forwarding charges
Erection & Electrification : 2.58
Preliminary & Pre-operative Expenses : 5.16
Total 252.92
Working capital for 1 month : 33.68
Total Cost of the Project 286.60
Financial Analysis :
Turn Over Per Annum 510.95
Profit Per Annum : 58.79
Net Profit Ratio on Sales : 11.50%
Rate of Return on Total Capital : 20.51%
Investment
Break Even Point : 53.64%
 68

Project Report

on
Jaggery (Gur)

A. Introduction:

Gur or Jaggery means the product obtained by boiling of sugarcane juice pressed out
of sugarcane or extracted from palmyra palm, date palm or coconut palm. Jaggery /Gur is
the most ancient sweetening agent in India. This is a low grade non-centrifugal sweetener
consumed in India, Pakistan, Bangladesh, Africa, Myanmar, China and other countries.
Jaggery (Gur) is a pure, traditional, unrefined form of sweetener and is mostly confined to
rural areas. Jaggery (Gur) contains total sugar (Glucose, fructose and sucrose) not less
90% and sucrose not less than 60% other minerals like Calcium, Iron, Phosphorous and
Protein are also present. This product is seasonal in nature i.e. it‘s production takes place
only during November to April in a year but its consumption takes place throughout the
year. Most of the Gur business suffers from losses due to poor quality of product. The
development of different value added products from Gur like confectionary products, liquid
gur, Aurvedic Jaggery, Jaggery Powder, Gur-Patti, Gur-Chocolate, Gur Burfi and Gur
containing Nutritional and Medicinal substances may be prepared to enhance the profit of
the unit.

No specific data is available about the Jaggery (Gur) manufacturing units in the
country however approximate 1,00,000 nos. both registered and un-registered units are
working in the country.

This report has been prepared with the Installed capacity of sugarcane 90 TCD.

B. Market Potential:

Jaggery (Gur) which has been produced in UP has also been sold in states like
Gujarat, Rajasthan, Punjab, J&K, Himanchal Pradesh, Delhi, West Bengal, Odisha.
Jaggery/Gur has been sold in different forms/shapes/ sizes/ quality and all depend on
demand pattern of the respective markets. Different types of shapes of Gur like Chaquoo,
Khurpa, Ladoo, Panchera and Ruscutt are available in the market. In Madhya Pradesh,
areas like Narsingpur, Betul, Datia, Hoshagabad, Chhindwada etc. and in Maharastra
Dist. Like Sangli, Kolhapur etc. are engaged in the production of different types of Gur
and other value added product. The demand for Jaggery is steadily growing many folds in
the urban, rural and semi-urban areas. There are several applications of jaggery in
almost all Indian houses and use it on day-to-day basis. Market for jaggery is throughout
the year whereas its production is during the sugarcane season and thus factory works
 69

for about 6 months every year. Apart from its household use, it is used in large quantities
in restaurants, road-side dhabas, other eateries, hostels and clubs and by caterers. It has
self-life of more than couple of months. In view of constantly growing market, is should
not be difficult for a new entrant to enter and capture the market.

C. Production Capacity (Per Annum):

Item Quantity.(In Rate/per Ton Value

Ton) (In Rs.) (Rs. In lakh)
Gur 1755 29000 508.95
Press Mud LS 2.00
Total 510.95

D. Basis & Presumptions:

The following Basis & Presumptions have been taken into consideration for setting up
of Jaggery (Gur) Manufacturing Unit:

1. The unit shall be having installed crushing capacity of 90 TCD.

2. As Jaggery (Gur) would have seasonal business during 06 months in a year i.e.
180 days and the unit will run on 3 shifts basis with 80-85% capacity utilization of the Plant
& Machinery.
3. In this report the recovery of jiggery/gur been calculated as 13% Gur and Press
Mud and Bagasse will also be sold by the unit and its value has been calculated on lump
sum price basis.
4. The cost of plant & machinery and equipment indicated refer to a particular make
and prices are approximate prevailing at the time of preparation of project.
5. Depreciation has been taken as-
I. On building (built of area) @ 5% per annum.

II. On machinery and equipment @10% p.a.

III. On office equipment & furniture @ 10%

IV. On laboratory equipments and other miscellaneous @ 10%.

6. Interest on capital investment has been taken @12% p.a.

7. For smooth functioning, the unit needs to have sufficient stock of sugarcane.
8. The cost of raw-materials and packaging material has been calculated on the
basis of prevailing market rate.
 70

9. The price of sugarcane has been taken as the price declared every year by
Central/State Govt. as Fair Remunerative Price (FRP).

E. Production Process:
Sugarcane Harvesting:

Sugarcane crop should be harvested for jaggery when juice brix is more than 21. The
cane crop should be harvested close to the ground level and top of 2-3 immature
internodes should not be used for jaggery preparation. Detached clean sugarcane should
be used for crushing.

Cane Crushing:

After harvesting the sugarcane it should be crushed as early as possible. The

sugarcane staling should not be more than 12 hrs. in any case. For crushing, horizontal
three roller crusher having juice extraction efficiency about 65% should be selected.

Juice Filtration:

The extracted juice should be cleaned by using two stage filtration system. The juice
is taken by gravity in to boiling pan. While transferring the juice from storage tank to the
boiling pan it should be passed through nylon cloth for filtration and removal of dirt and
other residual matters.

Juice Boiling:

For boiling of juice, improved chimney chulha (Furnace) is used. Generally 1000 liter
of juice is taken in boiling pan for jaggery processing. Dried cane bagasse is used as fuel
for boiling. The pH of fresh juice ranges between 5.2 to 5.4 which need to be raised up to
6.5 – 7.0. The alkaline pH of juice facilitates the coagulation of suspended impurities of
gummy colloidal substances. It also helps to avoid inversion of sugar. For this purpose lime
solution (prepared by dissolving lime @ 150-200 g in 5 liters of water) for 1000 liter of juice
is added in juice.

Juice Clarification:

For clarification of juice, the vegetative clariant, Okra plant (wild species) stalk extract
is used. This extract is prepared by crushing 2 kg. of okra plant stalk and soaking in 15
liters of water. The filtered extract is added in juice for clarification. At 85oC temp., the
nitrogenous impurities in juice start coagulating and float on surface as black scum which is
removed by strainer. Scum removal operation in very important operation in the jaggery
processing and efficiency of this operation decides the quality of jaggery.
 71

To avoid effect of excess nitrogen and to neutralize alkaline effect on jiggery color,
the arsenic free phosphoric acid is applied @ 150 to 200 ml / 1000 liter of cane juice. The
phosphoric acid should be applied accurately otherwise excess quantity will reduce the
granularity and will ultimately make the jaggery softer. Removal of second golden scum
should be carried out during boiling as and when it appears on top of juice.

Juice Concentration:

After clarification of juice, when temperature rises to about 99o to 100oC the juice
begins to froth. To Control excess frothing and to avoid loss of juice due to overflowing,
continuous stirring is applied by specially fabricated churner. After defrosting, juice gets
concentrated and 104 oC –105oC temp. the liquid jaggery stage is attained. The liquid
jaggery is further concentrated and edible oil @ 200 ml /1000 liter of juice is mixed.
Application of edible oil helps to increase temperature of liquid without caramelization. The
electronic thermometer with I m long sensor attached to the boiling pan is used for accurate
recording of juice temperatures at different stages and thereby to monitor the Jaggery
processing.

Jaggery (Gur) Cooling and Moulding:

When juice temp. rises to 118 0C + 0.5 0C the jiggery stage is observed. This stage
could be ascertained by jaggery ball test. Immediately at this stage, the boiling pan is
removed from furnace and hot jaggery is poured in cooling pit. Generally cooling pit of size
91/2‘x91/2‘x1/2‘ is constructed in ground and lined on all sides with wooden ladles. This
stirring application helps to improve color and granularity of jaggery (Gur). Before the
temperature of jaggery (Gur) drops to 76 0C, the hot jaggery mass is filled in different size
moulds as per market demand. After complete cooling, jaggery (Gur) is removed from
moulds and allowed to dry for 48 hrs.

Products of Jaggery (Gur):

1) Liquid Jaggery (Gur):

At 104 0C temperature of the juice, liquid jaggery stage is attained. The boiling pan is
then removed from furnace and the liquid jaggery is filled in stainless steel containers for
cooling. The liquid jaggery settles naturally in 8 to 9 days. To avoid crystallization, citric acid
is applied @ 400 mg/1kg.

For preservation of liquid jiggery, potassium metabisulphite @ 1 gm/1 kg is mixed in

liquid jiggery. After settling, liquid jaggery is filtered slowly without disturbing the sediment
deposited at bottom of container. It is then allowed for gentle boiling. The hot liquid jaggery
 72

is filled in container. It is then allowed for gentle boiling. The hot liquid jaggery is filled in
sterilized glass bottles and immediately capped.

2) Powder Jaggery (Gur):

Jaggery (Gur) in powder form has better colour, very low moisture content with high
keeping quality and easy to use however, the jaggery powder is prepared manually. For
powder making jaggery (Gur) is further concentrated up to 120 to 122oC temp. and then
poured in cooling pit. With wooden marker cross lines are drawn over jaggery (Gur) mass
kept in cooling pit in order to get small jiggery pieces. Jaggery pieces kept under cloth
cover are dried in sun. Dried jaggery (Gur) is reduced to powder form by wooden hammer.
After screening and drying, powder jaggery (Gur) is filled in polythene bags as per size
grades.
 73

FLOW PROCESS CHART FOR JAGGERY (GUR) PRODUCTION

Sugarcane
Sugarcane receiving
receving
Removal of trash, leaves, immature
Internodes etc.

Weighing

Crushing

(Three Roller, horizontal crusher) Bagasse

@ 62-65% extraction
Sun Drying
Juice

Filtration
(Two stage filtration using
2mm & 0.5 mm screens Impurities

Clean Juice collection

(Tank-Partly circular & valve system) Removal of impurities

Settling of juice (Tank, Taper bottom

with two valve system Removal of sediment

Sugarcane receiving
 74
Clean Juice for processing

Lime@150-200 g/1000 L Juice

Okra Plant mucilage@2 kg/1000
Boiling of Juice
Removal of black Scum

Phosphoric acid (arsenic free)

Concentration of Juice
150 ml/1000L

Removal of golden scum

Edible oil@150ml/1000 L

Liguid jiggery Solid Jaggery

(at 1040C) (at 118+0.50C)

Tipping of boiling pan for

Jaggery discharge
Cooling
Settling
Citric acid@0.04% (Stirring twice, cooling
(Natural, for 9 days)
+ KMS @ 0.1% upto 76 Tipping of 760C)
boiling pan for
Filtration

Moulding
Gentle boiling (Filling of jiggery in
various size & shape
moulds)

Liquid jaggery Drying (48 Hrs)

Weighing/packing/bottling/capping/labeling
etc.

Marketing/Storage
 75

F. Quality Specifications:

1. The product must meet the FSSAI Standards and the details are given below:

Gur or Jaggery shall conform to the following analytical standards, on dry weight
basis:-

Total sugars expressed as invert Not less than 90 percent and sucrose not
sugar less than 60 percent
Extraneous matter Not more than 2 percent.
In soluble in water
Total ash Not more than 6 per cent
Ash insoluble in hydrochloric acid Not more than 0.5 per cent
(HCI)
The product may contain food additives permitted in the Regulation.
Sodium bicarbonate, if used for clarification purposes, shall be of food grade
quality.

2. For setting up jaggery (Gur) unit it is essential to get License from the
competent authority designated by the State Govt.

G. Pollution Control Measures:

The unit is to get ―No Objection Certificate‖ (NOC) from the State Pollution Control
Board, where the Jaggery (Gur) unit is proposed to set up.

H. Energy Conservation Measures:

1. Star rated electrical motors and accessories to be used in Gur plant.

2. In sugar crushing section, lot of moving parts including gears is involved.
Periodical maintenance and proper lubrication will save energy.
3. Use of LED lighting will reduce lighting load.
4. The installation of Roof Top Solar Panels and other open unused areas will also
be a step forward for extra clean energy generation.
 76

I. Financial Aspects:

i) Land & Building: (Rs. In lakh)

Sl.No. Description Value

1. Land 4 acres @ Rs.8.0 lakh per acre 32.00
2. Built up area –
a) Weighing, crushing and processing area
b) Raw material, stock godown, packaging material godown 150.00
etc.
c) Office, Laboratory, Rest room for workers, canteen etc.
Total area 3000 sq.mtr.@5000/ sq.mtr.
3. Contingent- water boring and water storage tank, boundary wall, 10.00
gates & safety measures etc.
Total: 182.00

ii) Cost of Machinery & Equipment: (Rs. In lakh)

Sl. Particulars of Machines Qty. Rate Amount

No. (Nos.)
1. Electronic Weighing Machine for 1 9.00 9.00
sugarcane with complete accessories
2. Cane handling & preparation plant: 1 Complete 9.00 9.00
Auto cane feeder, Cane cutter with knives Set
including all accessories.
3. Cane Crushing unit : 1 Complete 20.00 20.00
Crushing unit with Hydraulic system Set
alongwith Rollers of size 11X14 inch (75
TCD) with all mechanical/electrical
accessories.
4. Juice filtration unit with all accessories. 1 2.00 2.00
5. Furnace (Meerut Type) 7 0.50 3.50
6. Boiling Pan M.S. (Bel) 21 0.10 2.10
7. D.G Set Complete with accessories 1 5.00 5.00
8. Water /Juice storage tank L.S. 1.00
Sub Total 51.60
9. Misc. equipments i.e. Chak with wooden framing, Belcha, ladles, 5.00
Pan, Dies & Moulds, storage pans and laboratory equipments etc.
10. Pollution Control Equipments 2.00
11. Office Furniture & Fixtures 2.00
12. Packaging, Forwarding, GST, Insurance charges @5% 2.58
13. Electrification & erection of Machine charges @5% 2.58
Sub Total 14.16
Total 65.76
 77

iii) Fixed Investment: (Rs. In lakh)

Sl. Description Amount

No (Rs.)

1 Land & Building 182.00

2 Machinery & equipments 65.76

3 Preliminary & Pre-operative expenses (Preliminary & Pre-operative 5.16

expenses (Project preparation, legal expenses, travelling expenses
during implementation of the project, Trail production, Interest loan
on Terms loans during erection period, anticipated escalation
towards cost of machinery & equipments etc. @ 10%.)
Grand Total 252.92

iv) Working Capital (Per Annum):

a. Salary & Wages (Per Annum):

Sl. Designation No. Rate Month Total

No.
Rs. (Rs. In lakh)

1 Manager 1 40000 12 4.80

2 Plant Engineer/Chemist 1 25000 12 3.00
3 Cashier/Accountant 1 15000 12 1.80
4 Supervisor (Cane) 1 15000 12 1.80
5 Senior Mechanics 1 15000 12 1.80
6 Assistant Mechanics 1 12000 12 1.44
7 Electricians 1 12000 12 1.44
8 Clerk (Office/Weighing) 1 12000 06 0.72
9 Skilled /Semi-skilled workers 15 12000 06 10.80
10 Unskilled Workers 25 9000 06 13.50
Sub-total: 41.10

11 Perquisites @10% 4.11

Total: 45.21
 78

b. Raw Material Requirement (Per Annum):

Sl. No. Description Qty.(in Rate (Rs./per ton) Value

tones ) (Rs. In lakh)
1 Sugarcane 13500 2550/per ton 344.25
2 Chemicals, Consumables LS - 5.75
& Packaging Material
Total: 350.00

c. Utilities (Per Annum):

Sl. No. Description Value

(Rs. In lakh)
1. Diesel, Mobil Oil & Other consumables & water 4.00

Total : 4.00

d. Misc. Expenses (Per Annum):

Sl. No. Description Value

(Rs. In lakh)
1 Postage & Stationery
2 Telephone
3 Consumable Stores
4 Repairs & maintenance` 5.00
5 Local Transports, loading and unloading
6 Advertisement and publicity
7 Insurance
8 Sales expenses
Total: 5.00

e. Total Working Capital requirement (Per Annum.):

1 Salary & Wages 45.21

2 Raw Materials & Packaging material 350.00
3 Utilities 4.00
4 Misc. expenses 5.00
Total: 404.21

f. Working capital for 01 month only 404.21/12 = Rs. 33.68 Lakh

v) Total Capital Investment: (Rs. in lakh)

I. Fixed Investment 252.92
II. Working Capital for 1 months 33.68

Total: 286.60
 79

J. Financial Analysis:

i) Cost of Production (Per Annum): (Rs. in lakh)

Sl. Particulars Value

No.
1 Recurring Expenditure 404.21
2 Depreciation on Building & others @ 5% pm 7.50
3 Depreciation on Machinery & Equipment @ 10% 5.16
4 Depreciation on laboratory, furniture & others @ 10% 0.90
5 Interest on Total Capital Investment @ 12% pm 34.39
Total: - 452.16

ii) Turnover (Per Annum):

Item Quantity.(In Rate/per Ton Value

Ton) (in Rs.) (Rs. in lakh)
Gur 1755 29000 508.95
Press Mud LS 2.00
Total 510.95

iii) Net Profit (Per Annum) Before Taxation:

(Rs. in lakh)

Turn Over - Cost of Production

510.95 - 452.16 = 58.79

iv) Profit Ratio on Sales (Per Annum):

Profit/annum X 100 58.79X 100

Turnover/Annum 510.95 = 11.50 %

v) Rate of Return (Per Annum):

Net Profit/annum X 100 58.79 X 100

Total Capital Investment 286.60 = 20.51%

vi) Break Even Point (B.E.P.):

Fixed Cost: (Rs. in lakh)

1 Depreciation on Building & others @ 5% pm 7.5

2 Depreciation on machinery & equipments @ 10% 5.16
3 Depreciation o laboratory, furniture & others @ 10% 0.90
4 Interest on Capital Investment @ 12% p.a. 34.39
5 40% of Salary & Wages 18.08
6 40% of other expenses 2.00
Total:- 68.03
 80

B.E.P.

Fixed Cost X 100 68.03X 100

Fixed Cost + Profit 68.03 + 58.79 = 53.64%

K. Names of Machinery & Equipment Suppliers:

1. M/s O.P.Shukla & Associates 5/441, Viram Khand, Gomti Nagar, Lucknow-226010
0522-2725167, 9415086924, 7999832072, E mail: opshukla-shukla@gmail.com
2. M/s Super Tech. Engineers opposite new Rana Rolling Mill, Near Shandhabali
railway Crossing, U.P
Mr. Sanddep Rathi, 9837545999, Email: rathi_sandeep68@yahoo.com
3. M/s Technochem Projects and Technologies, UPSIDC, M.G. Road, Ghaziabad
(U.P.) Mob.:08071803505
4. M/s Nilasons Group of Industries, Pune (Maharashtra).
Mob. 9881394360, 9823729044
5. M/s Hycom Process Private Limited, Sai Vihar No. 3, Survey No. 71/A, Near
PCMC Gardeo Pune - 411361 Maharashtra(India) Mob. 09922112258
6. M/s Moon Sun Group of companies, Vidurkuti ganj road, Bijnor – 246701
(UP), Mobile :+91- 9412217161Email : moonsun695@yahoo.com
7. M/s Vijay Agro Industries, Jadhav Chintaman(Proprietor), Gut No. 215, Post
Kasbe Sukene, Taluka- Niphad, Nashik - 422302, Maharashtra, India.
Mob. 08071805969 , Telephone: +91-2550-279236 +91-2550-279010
8. M/s Excel Plants & Equipment Private Limited, Gat No. 611, Mouje Kuruli, M. I. D.
C. Chakan Pune - 410501 Maharashtra (India) Mob. 08071681616
www.excelplants.com

References:

Jaggery/Gur Production Technology and other research papers published by All India
Coordinated Research Project on Post Harvest Engineering Station, Kolhapur and Indian
Sugar Mill Association, New Delhi.
 81

9. Government Support
A. Scheme for Financial Support:

It was observed during the discussions with, the Stake holders of Khandsari/Jaggery
Sector that awareness about the schemes of Ministry of MSME or other Ministries
supporting the sector is very less. In view of above, some of the schemes which can be
effectively used by MSMEs of Khandsari/Jaggery Sector to get the financial assistance and
other supports to set up or expand their enterprises are summarized as under-

i) Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT
MSE):

Collateral free loan up to Rs. 200 lakh is available under the scheme. Both existing
and new Micro & Small enterprises are eligible to credit facility under the scheme. The
nodal agency is SIDBI. The scheme is implemented through Public Sector Banks, Private
Sector banks, Financial Institutions and Regional Rural Banks etc.

ii) Prime Minister’s Employment Generation Programme (PMEGP):

The subsidized financial assistance ranging from 15% to 35% of the project cost
(maximum project cost Rs. 25 lakh) for setting up of an enterprise, is available under this
flagship scheme of Ministry of MSME. Khadi and Village Industries Commission (KVIC) is
the nodal agency. The scheme is implemented through KVIC, KVIB and DIC. Some of the
Jaggery units have been set up under the scheme.

iii) Stand Up India Scheme:

The Government of India has launched Stand-up India Scheme on 05.04.2016 to

promote entrepreneurship among Scheduled Caste/Scheduled Tribe and Women in the
country. The objective of the scheme is to extend bank loans between Rs.10 lakh and Rs.1
crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least
one woman borrower per bank branch for setting up a Greenfield enterprise. This
enterprise may be in manufacturing, services, or the trading sector. Handholding support if
required will also be provided under the scheme. Stand-up India scheme is being
implemented through all Scheduled Commercial Banks.

iv) National SC/ST Hub Scheme:

Ministry of MSME, Govt. of India has introduced National SC/ST Hub Scheme, for
SC/ST Entrepreneurs to set up their own unit. The subsidy at the rate of 25% (max. Rs. 25
lakh), is available for the project cost upto Rs. 100 lakh. The implementing agencies are
NSIC and O/o DC-MSME Ministry of MSME, New Delhi.
 82

B. Scheme for Technology Upgradation Support:

i) Credit Linked Capital Subsidy Scheme for Technology Upgradation:

The Scheme facilitate technology up-gradation in MSEs by providing an upfront

capital subsidy of 15 per cent and maximum up to Rs. 15 lakh (on institutional finance of up
to Rs 1 crore availed by them) for induction of well-established and improved technology in
the specified 51 subsectors/ products approved. List of Technologies is available at
www.dcmsme.gov.in
Online Application and Tracking System has been introduced w.e.f. 01.10.2013. The
eligible MSEs are required to upload their application online and may track the same for
release of subsidy. Funds are then transferred by the Nodal Agencies to the PUs where the
account of the MSE is operated.

ii) Lean Manufacturing Competitiveness Scheme (LMCS) for MSMEs:

The scheme provides financial support to Mini Clusters of MSMEs (4 to 10 units) for
adopting Lean Manufacturing Technologies in their units. The financial support available is
Rs.36.00 lakh with 80:20 ratio of GOI and units contribution on pro- rata basis.This
flagship scheme of Technology Upgradation is implemented through NPC, QCI and field
formations of O/O DC-MSME.

iii) Design Scheme: Design of Product in MSMEs is significant for various points of
views like look, aesthetic appeal, ease of manufacture, sustainability, reliability and
business processes. Innovation, design and growth are interlinked. Improved designs
developed by this linkage reduce the manufacturing cost and increase the usability &
business opportunities. Application of design by MSMEs increases the value and
competitiveness of their products. The details of funding support provided the O/o DC
(MSME) is as under:

a) Grant up to a maximum of 60% of the total approved project cost or Rs. 9.0 Lakh,
whichever is less, in case of a individual MSME or a group of not more than three MSME
applicants.
b) Grant up to a maximum of 60% of the total approved project cost or Rs. 15 Lakh,
whichever is less, in case of a group of four or more MSME applicants.

iv) ZED Scheme: The scheme envisages promotion of ZED manufacturing and ZED
assessment amongst MSMEs. The assessment process consists of 50 parameters and
three stages i.e. Online self assessment, Desktop assessment and Complete assessment
for ZED rating. ZED rating for MSMEs ranges as Bronze - Silver-Gold-Diamond- Platinum.
 83

Additional rating for Defence angle and Re- rating can also be done for MSMEs under this
scheme. After ZED assessment and adoption of proper tools, MSMEs can reduce
wastages substantially, increase productivity, expand their, become vendors to CPSUs,
have more IPRs, develop new products and processes etc.
Subsidy for Micro, Small & Medium Enterprises will be 80%, 60% and 50%
respectively.

C. Scheme for Marketing Assistance:

Entrepreneurs of Khandsari Units can avail the incentives available under market
development assistance and other promotional schemes. The details of schemes are as
under:
i) Internal Cooperation Scheme:

International Cooperation Scheme is being implemented by the Ministry of

MSME under which financial assistance is provided for deputation of MSME business
delegation to other countries for exploring new areas of MSMEs, participation by Indian
MSMEs in international exhibitions, trade fairs, buyer-seller meet and for holding
international conference and seminars which are of the interest of MSME sector.

ii) Procurement and Marketing Support Scheme:

This Scheme offers support for participation in Domestic Fairs / Exhibitions for
which Subsidy will given to MSEs towards Space Rent Charges up to Rs. 30,000/- and Rs
10,000/- as Contingency Expenditure per unit. It also supports for organizing
National/International Trade Fairs/Exhibitions/MSME Expo., Modern Packaging Technique
and for upgradation of Marketing Haats.

iii) Vendor Development Programme (VDP):

For the publicity and effective implementation of Public Procurement Policy-2012 and
providing common platform for buyers and sellers these programmes are organized by
various field offices of Ministry of MSME.

iv) International/National Workshops/Seminars on Marketing/Public

Procurement/ Packaging etc.:

These programmes are organized for bringing awareness about trade fairs, digital
advertising-marketing platform, GST, GeM portal etc
 84

v) Public Procurement Policy for MSEs Order 2012:

This Policy mandates 20% procurement from MSEs including 4% procurement from
SC/ST owned enterprises by Central Ministries, Central Departments and CPSEs. Apart
from achieving 20% procurement from MSEs, benefits like Tender sets free of cost, EMD
exemption, essential procurement of 358 items from MSEs etc. are also to be given as per
the provisions of the policy.

vi) Market Support by NSIC:

National Small Industries Corporation (NSIC) promote marketing efforts and enhance
the competency of the small enterprises for capturing new market opportunities by way of
organizing / participating in various domestic & international exhibitions/ trade fairs, buyers-
sellers meets, intensive campaign/seminars, consortia formation and Single Point
Registration Scheme. Illegible beneficiaries can approach NSIC offices to avail the
incentives.

D. Scheme for Infrastructure Development Assistance:

i) Support through (MSE-CDP) Scheme-

The Scheme is implemented by O/O DC (MSME) and it extends the financial support
to MSEs Cluster for hard interventions to set up Common Facility Centers. The financial
assistance up to 90% of the project cost (upper cap on project cost is Rs. 20 Crores).
Financial assistance is also provided for Infrastructure development in MSEs Clusters. The
financial assistance up to 80% of the project cost (upper cap on project cost is Rs. 10
Crores) is given.

ii) Pradhan Mantri Kisan SAMPADA Yojana:

The scheme is implemented by Ministry of Food Processing Industries (MoFPI). and

it extends financial support for Mega Food Parks, Integrated Cold Chain and Value Addition
Infrastructure, Creation / Expansion of Food Processing & Preservation Capacities,
Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages,
Food Safety and Quality Assurance Infrastructure and Human Resources and Institutions.
 85

iii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI):

Under this scheme, employment of rural entrepreneurs and artisans is enhanced

through soft interventions, hard interventions and thematic interventions. Financial
assistance is given in heritage cluster (up to Rs. 8.0 crores), major clusters (up to Rs.3.0
crores) and in mini clusters (up to Rs. 1.5 crores) for skill development and capacity
building, exposure visit, market development initiative, design and product development,
creation of CFC, raw material banks, warehousing facility, tools and technology
upgradation, brand promotion and research & development etc.

N.B. The above mentioned schemes are indicative. There are a good no. of schemes
of the Govt. of India and State Governments which can be used for developments of the
Khandsari /Jaggery sector. The details of such schemes may be referred at websites of
respective ministries and organizations.
 86

10. Way Forward- Areas of Concern and Suggested Interventions

for Khandsari Sugar & Jaggery (Gur) Industry

Sl. Areas of Concern Suggested Interventions
No.
A. Policy:
1.
a. Licensing Procedure:
Simplification and Renewal Period: To Simplified licensing procedure
start a Khandsari sugar/gur unit, an with extended renewal period say
entrepreneur has to obtain license from the from existing one year to three
Competent Authority. In Uttar Pradesh it is years.
issued by Khandsari Department (Working
under O/o Sugar Commissioner), in
Maharashtra by the O/o Sugar Commissioner, in
Madhya Pradesh by Department of MSMEs after
NOC from O/o Sugar Commissioner and in
Karnataka by O/o Commissioner for Cane
Development & Director of Sugar. The renewal
of license is mandatory on annual basis.

Licensing procedure in the State of

Maharashtra, Madhya Pradesh and Karnataka is
very simple and entrepreneurs friendly whereas
in U.P. owners of the Khandsari sugar units
stated that provisions for issuing license need
simplification.

In U.P. for issuance of license (under Khandsari Khandsari units of U.P., may be
Sugar Manufacturers License Order,1967) for given relaxation for-
starting a Khandsari unit, the following
compliances are required -

a. Unit can not deviate from the Roller Size a. Unit should be free to use the
mentioned in the License. size of roller as per its
requirement.
b. Manufacturing process. Flexible
b. Manufacturing
process as per their
requirement.
c. Type of furnace used (Meerut or c. Unit should be free to use any
Ruhelkhand Type) type of furnace.

d. Compliance of Section 3/7. d. Section 3/7 may be relaxed for

Khandsari sugar units.

b. Aerial Distance from Sugar Mill: In Aerial Distance criteria may be

Maharashtra & Madhya Pradesh a new redefined by the Central/ State
Khandsari sugar unit can be opened only 15 Govts. in consultation with the
Km. aerial distance away from a sugar mill stake holders.
whereas in U.P. this distance has been reduced
upto 8 Km. In Karnataka there is no restriction of
distance from a sugar Mill. During the
discussion, entrepreneurs suggested that it
should not be more than 5 Km. from Sugar Mill
 87

and if new sugar mill is opened nearby to

existing Khandsari Sugar Unit relaxation may be
given to Khandsari Sugar Unit for obtaining
NOC.

c. Mandi Samiti Shulk: It is charged from Gur The waiver of Mandi Samiti Shulk
manufactures, selling their products in a Mandi may be considered by the State
@2.0% in Madhya Pradesh and @ 2.5% in U.P. Govt.

d. Vacuum Pan Drying: As per Khandsari Change in the Order may be

Sugar Manufacturers License Order, 1967, a considered to allow Khandsari
Khandsari unit can use only open Pan Drying sugar units to use vacuum pan
Process for concentrating the sugarcane juice
drying process which will improve
and converting the same into sugar crystals in
which recovery of sugar is less in comparison to their sugar recovery 2-3%, with
Vacuum Pan Drying used in Sugar Mills. following conditions:-
a. Upper Cap on maximum
crushing capacity say- upto
500 TCD.
b. The Turnover Cap -maximum
upto Rs.250 Crores.
c. Payment of sugarcane @ Fair
& Remunerative Price (FRP)
to farmers.

e. Rate of GST on Molasses: GST is charged Lowering of rate of GST on

on the sale of Molasses being produced by molasses may be considered by
Khandsari units as by-product @ Rs. 28%. Units the Govt. of India.
demanded to waive off GST. Entrepreneurs
have informed that sale of molasses has gone
down because of higher rate of GST.

2. Technology:
a) Vacuum Pan Drying: For concentrating the As mentioned under the Policy
sugarcane juice with open pan process the section, use of Vacuum Pan
recovery of sugar (including I, II and III grade) is Process may be allowed for
only 7-9% and rest is Rab or Molasses. Use of Khandsari sector.
Vacuum Pan Process will increase additional Though the cost of adoption of
sugar recovery 2-3% and also improve the sugar the Vacuum Pan process could
crystal quality. It will increase the profitability of be to the tune of Rs. 1- 1.5
the unit. Crores, however units may be
allowed to avail the benefits of
CLCSS scheme of DC-MSME.

b) Improved Furnace: Khandsari Sugar/Gur Furnaces with improved designs

manufacturing units are using conventional need to be promoted in Khandsari
furnace for juice concentration. The Thermal sugar/Jaggery units. The
Efficiency of these furnaces is quite low. conventional furnaces may be re-
designed with more thermal
efficiency. The Design issues may
addressed under Design of DC-
MSME.
Assistance for the improvement in
designs may be taken from
concerned Research Institutions.
 88
c) Mini Boilers: Use of mini boilers by Gur
manufacturing units, will not only reduce
consumption of begasse but also improve the
quality of Gur and related products.
d) Hydraulic Crushing System: Gur
manufacturing units are using conventional
crushers (vertical type) for sugarcane crushing.
Due to this the sugarcane juice recovery is low.
3. Finance:
a) Working Capital Assistance: All the
Khandsari sugar/gur manufacturers informed
that they will have to pay the price of sugarcane
to the farmers on immediate basis, whereas
their finished product is sold from one week to
one month duration. They remain in urgent need
of funds for the payment.
b) Starting new units: New entrepreneurs Prospective entrepreneur can
going to start a Khandsari gur manufacturing start new unit by availing loan
unit faces acute shortage of funds. under PMEGP and similar
Schemes of State Govt.
c) Modernization of Plant: For the
modernization of their units many times they
face the problem of funds to purchase new plant
& machinery.
4. Infra Structural Support:
a. Setting up Common Facility Centre :
Khandsari Sugar/gur units rarely get their
products tested in approved laboratory. They
are not aware about the quality of their products
hence it becomes difficult for them to do the
effective marketing of their products.
Entrepreneurs face day to day problems related
to the man-power, repair & maintenance etc.
Awareness Programme may be
organized to promote use of mini
boilers to save the energy and
manpower in these units. In these
programmes information about
new technologies with efficient
energy utilization, developed by
Research Institutions may be
transferred.
Gur manufacturers may be
motivated to use horizontal rollers
alongwith hydraulic facility. Units
may be allowed to avail the
benefits of CLCSS scheme of
DC-MSME
As the govt. provides interest
free/subsidized loan to sugar
mills, hence this facility may also
be extended to provide loan as
working capital to Khandsari
sugar/gur manufacturing units so
that they can make the payment
of farmers.
Khandsari sugar/gur
manufacturers can modernize
their plant by introducing new
machineries and can avail
subsidy under CLCSS and
CGTMSE Scheme of Ministry of
MSME.
Under MSE-CDP Scheme of O/o
DC(MSME), a common facility
centre may be set up to cater the
following services:
i)Testing laboratories may be set
up to solve their quality related
issues.
ii) Packaging services.
iii) Tool Room Services for the
maintenance of Khandsari sugar/
jaggery (Gur) unit.
iv) Skill Development
 89

v) Product & Process

Development.

b. Setting up of Regional Food Parks : Mega Food Parks under Pradhan

For Gur manufacturing units including units
manufacturing products of Sugar and Gur
there are no Food Parks or ear marked areas
of manufacturing where all latest facilities like
Road, Man-power, technology, market etc.
are available.
Mantri SAMPADA Yojana may be
set up in the states where there is
scope for setting up of a large
number of Khandsari units.

c. Setting up of Warehouses : Warehouses suitable for

Storage of Khandsari sugar/gur is the major Khandsari sugar/gur may be
problem mainly in the rainy season. constructed and these may be
opened for all registered vendors
to avail this facility on
concessional prices.
5. Marketing Support :
a) Limited shelf life and competitive market: Shelf life of Gur Products may be
Khandsari Sugar and gur manufacturers are increased by the use of shelf life
facing acute problem of selling their products enhancer. Food additives, Taste,
due to limited shelf life being hygroscopic Flavour enhancers, Colour may
character of sugar & gur and very competitive & alsop be added for competitive
fluctuating market rates. They are also not marketing. Organisation of
aware about the National/International market awareness programmes
for their products. They are dependent on local alongwith Marketing experts will
traders and are many times exploited by them promote the entrepreneurs for
by selling their products at a very low cost. new areas of marketing.

b) Establishment of New Mandi Samitis:

State Governments may consider
Mandis are established for selling the
the issue of opening of New
agricultural produces; they act as the centre for
Mandi Samiti.
sales promotion to boost the immediate
purchase of products by wholesalers. New
Mandis in Gur Manufacturing area may be
opened to facilitate the local gur manufacturers.

c) Setting up Display Centers: Outlets of Khandsari/jaggery

Display Centres and Retail sales outlets of (Gur) Products at tourist places,
Khandsari/jaggery (Gur) Products at tourist highways and prominent places
places, highways and other prominent places to may be opened by State
highlight the specialties of the product of that Governments under PPP mode.
region. These centres will act as the business
tie up centres. The products will be displayed on
nominal charge payment basis.

d) Exposure Visits:
Study/Exposure visits of the cluster, advanced Study Visit, Exposure visit of
units equipped with latest technology and Clusters and Participation of
research centers may be done on frequent Khandsari sugar & Gur
basis. This will facilitate acquaintance with the manufacture ring units in
use of advanced seed varieties, process international/national trade fairs
development and value added products. It will organized by various Deptts., may
also be useful in exchanging the price policies be planned by both Central/State
and others issues prevailing in different regions Govts.
of our country.
 90
e) Awareness workshops on Export Awareness workshops may be
Promotion:
Specialized awareness workshop may be
organized to explore the export potential, how to
become an exporter, export procedure & export
documentations.
f) Packaging:
Packaging is an essential part for the safety,
hygiene and marketing of the product. Now a
day latest packing technologies are available for
appealing physical appearance. Packing in
attractive shapes, size also increases the
competition and sales promotion.
6. Manufacturing of value added products:
Most of the jaggery (Gur) manufacturing units
produce conventional products which have
narrow profit margins. Production of value added
products will increase the profitability of
Khandsari/Gur units.
7. Setting up of Units using by-products:
Some units manufacturing Ethanol, Paper Pulp
& Paper Board, Cattle Feed, Micro Nutrients
and Organic Manure need to be set up to create
backward linkages for consumption of by-
products of Khandsari Sugar/Gur Industry like
molasses, bagasse, Press Mud for developing
proper value chain. Few units manufacturing
bio-briquettes can be set up to use bagasse as
raw material.
organized to address the issue.
Awareness programmes on
Packaging may be organized with
Indian Institute of Packaging (IIP),
New Delhi to solve the problem.
Also setting up of common
packaging centres under the
Govt. schemes would be a help
for the industry.
Units can diversify their range of
products by inclusion of Value
added products of Jaggery(gur)
such as:
 Organic Gur
 Gur containing Nutritional and
Medicinal substances
 Ayurvedic Jaggery
 confectionary products
 Liquid Gur
 Jaggery Powder
 Gur Till Patti
 Gur-Patti
 Ram Dana Laddu
 Til Laddu,
 Gur Gazak
 Gur-Chocolate
 Gur Burfi
The above will increase the
profitability of Khandsari owners
and sugarcane growers/farmers.
Information about these business
opportunities may be publicized
so as to motivate a few
entrepreneurs to set up their units
using by-products as the raw-
materials.They can avail the
incentives under different scheme
run by Central/State Govt.
 91

8. Interventions in the Pollution Measures:

Khandsari/Gur units are situated in rural areas The proposal may be considered
and emission of polluting substances is by the Central /State Govt.
negligible, hence they may be considered under
green category.
9. Need for Promotion and Setting up of New
Khandsari Units :

Khandsari units are situated in rural areas and
create a huge direct & indirect employment in
villages. They facilitate small farmers which are
not enrolled in the schedule of Sugar Mills.
These units make immediate payments to the
farmers of their crops hence solve their
immediate financial needs. Khandsari sugar unit
generates electricity to meet out their demand
and with surplus they can fetch electricity to 2-3
nearby villages.
Sufficient sugarcane is available
in the country for setting up of
more Khandsari units in rural
areas. This will increase the
employment in rural areas and
will help sugarcane growing
farmers specially having limited
land to grow sugar cane.
 92

Annexure – I

List of Accredited Food Testing Laboratories

Sl. Name and contact details of the Laboratories
No.
1. Apex Testing and Research Laboratory, New Delhi
Dr. Ashish Kant Jain,
B-90, Shardapuri, Ramesh Nagar, Near Mother Diary,
New Delhi-110015
Tel: 011-47081611, Mob.08376945025, 9350049916
Email:infor.apex2015@gmail.com,
apextesting.researchlab2015@gmail.com
2. Arbro Pharmaceuticals Limited , Delhi
Mr. Raman Malik (Regional Manager) Analytical Division,
4/9, Kirti Nagar, Industrial Area, New Delhi-110015
Tel.:011-45754575, Mob.+919312154614
Email:r.malik@arbro.net, arbrolab@arbropharma.com
3. Avon Food Lab Private Limited, Delhi
Mr. Sunil Kuamr Kochar (CEO),
C-35/23, Lawrence Road Industrial Area, Delhi-110035
Tel:011-45202222, Mob.:09810004270
Email:sunil.kochar@avondfoodlab.com,
marketing@avonfoodlab.com

4. Bharat Test House, Delhi

Mr. Anil Kumar Taliwal (Director Tech)
454/2, Timber Marjket Azadpur Commercial Complex,
Delhi-110033
Tel:011-27672629, 27675696 Fax:011-43851204
Mob.:09810922051
Email:bthinfo@bharattesthouse.com,
crm@bharattesthouse.com
5. Delhi Test House, Delhi
Mr. M.C.Goel (Director),
A-62/3, G.T.Karnal Road, Industrial Area,
Opp. Hans Cinema, Azadpur, New Delhi-110033
Tel: 011-47075555
Email: info@delhitesthouse.com
6. Eurofins Analytical Services India Pvt. Ltd., New Delhi
Dr.Gouri Sathpaty (Sr. Manager),
Ground Floor, S-2, Phase II, Okhla Industrial Area,
New Delhi-110020
Tel :011-33152708
Mob. :07259451031
Email:infoindia@durofins.com
7. Fair Quality Institute (Food Anlysis & Industrial Research Quality Institute),
New Delhi
Mr. D.K.Misra (C.E.O.)
Plot NO.635, IInd Floor, Opposite Metro Pillar No.512,
Main Rohtak Road, Mundka, New Delhi-110041
Tel: 011-32029751, Mobile :09818961567
Email : fqilab@gmail.com, fairqualityinstitute@gmail.com
 93

8. FICCI Research and Analysis Centre, New Delhi

Mr.J.S.Sandhu (Director-Technical),
Plot No.2A, Sector-8, Dwarka, New Delhi-110077
Tel: 011-45333500/510
Mobile:+91-7042296346
Fax: 011- 25360802
Email: jsandhu@fraclabs.org.

9. ITL Labs Private Limited,

Mr. Sanjay Mehra (Quality Manager)
B-283-284, Mangolpuri, Industrial Area, Phase-1, Delhi-110083
Tel: 011—27915654, 65368717,
Fax No. L011-27923339
Mobile :91 9811055913
Email: itl94@hotmail.com, itllabs@gmail.com,
qa.itllabs@gmail.com

10. Microchem Silliker Private Limited, New Delhi

Mr.Vimlendu Pandey (Deputy General Manager)
8/41-A, 2nd Floor, Kirti Nagar Industrial Area,
New Delhi-110015
Tel : 011-45061829, 45061828
Mobile:91 9711332557
Email: vimlendu.pandey@mxns.com

11. Quality Services & Laboratories, New Delhi

Mr.Mridul Kohli (C.E.O.),
Plot No. 10, Second Floor, D.S.I.D.C., Scheme-III,
Okhla Industrial Ara, Phase-II, New Delhi-110020
Tel: 011-26385513, 26385514, Fax:011-26385516
Mob.:09811995014
Email:corp@qsl.co.in, mridul_kohli@qsl.co.in

12. Shriram Institute for Industrial Research,Delhi

Dr.K.M.Chacko(Director)
19,University Road,New Delhi-110007
Tel: 011-27667267Extn. 101/114, Fax:011-27667207
Mob.:9818360622,9999762331(PS)
Email:doff@Shriraminstitute.org,
kmchacko@shriraminstitute.org

13. Singma Test And Research Centre,Delhi

Mr.Rahul Gupta (Vice President)
BA-15,Mangolpuri Industrial Area, Phase-II,
Delhi-110034
Tel:011-49491414
Mobile:09811565000
Email: rahul@sigmatest.org,info@sigmatest.org
14. Sophisticated Industrial Materials Analytical Labs Private Limited,Delhi
Mr.J.S. chadha(Director)
A-3/7 Mayapuri Industrial Area, Phase-II
New Delhi -110064
Tel:011-43854300-29, Fax:01143854330
Mobile:09810021737
Email:qa@simalab.co.in,testing@simalab.co.in
 94

15. Spectro Analytical Labs Limited,Delhi

Mr.Kamal K.Mehta(Executive Director)
E- 41, Okhla Industrial Area, Phase – 2, New Delhi -110020
Tel: 011-40522000,40522000
Mobile:09818377989
Email: kkm@spectro.in, care@spectro.in, umesh@spectro.in
16. Standard Analytical Laboratory(ND) Private Limited
Dr.Priyanka Mishra (Quality Manager)
69, Functional Industrial Estate, Patparganj,Delhi – 110092
Tel : 011-22143265,22143266
Fax: 011-45130672
Mobile: 099907711838,08447498888
Email: info@testinglaboratoryindia.com,
customercare@testinglaboratoryindia.com
17. Dove Research & Analytics, Panchkula
Mr. Anil Arya (M.D.)
Plot no. 298, industrial Area, Phase-II,Panchkula -134109,Haryana
Tel: 0172-5010127; Mobile: 09876971976
Email: drachd@gmail.com
18. Fare Labs Private Limited, Gurugram
Mr. D. Mathur (Director)
L 17/3,DLF-Phase-II M.G. Road, Gurugram – 122002,Haryana
Mobile: 09312664533
Email: farelabs@farelabs.com
19. Advance Research and Analytical Services, Ghaziabad
Mr. Neeraj Kumar Mishra (CEO)
1/8, South side G.T. Road, Bulandshar Industrial area, Near Adity Business Centre,
Lal Kuan, NH-24, Ghaziabad-201009, U.P.
Tel:0120-2740390
Mobile:+919811226555,9654360432
Email:info@arasindia.com, richa@arsindia,com,
ritu@arsindia.com
20. AES Laboratories Private Limited, Noida
Mr. Vishal Arora (Director)
B-118, Phase-II, Noida-201304,Uttar Pradesh
Tel:0120-4646713
Mobile:+919811331569
Email:vishal.arora@aeslabs.com,tqm@aeslabs.com,
support@aeslabs.com
21. Atharva Laboratories Pvt.Ltd.Noida
Ms.Aprana Parvatikar(directot)
B-100, Phase-II, Noida -201305,Uttar Pradesh
Tel:0120-4559212,
Fax:0120-4324818
Mobile:8588840612
Email:alplgreaternoida@gmail.com,
atharvalabpvtltd@gmail.com

22. Eko Pro Engineers Private Limited, Ghaziabad

Mr.Amit Saxena (Quality Manager)
32/41,South Side of G.T. Road, UPSIDC Industrial Area,
Ghaziabad-201009,U.P.
Mobile:+919810243870
Email:ekoproengineers@gmailcom
 95

23. Food Analysis and Research Laboratory (FARL),Allahabad

Mr.Rahul Agarwal
Centre of food Technology,
Science Faculty Campur, University of Allahbad,
Allahbad-211002
Tel:0532-2460289
Fax:0532-2460289
Email:farlcft@gmail.com,qacellcft@gmail.com

24. National Test House (Northern Region),Ghaziabad

Mr. Buddh Prakash (Scientist SB (Chemical)
Kamla Nehru Nagar, Ghaziabad-201002
Tel:0120-2783276,2789493,
Fax:0120-2789883
Email:nthnr-ca@nic.in

25. Atharva Laboratories Pvt. Ltd., Noida

Ms.Aparna Parvatikar (Director)
B-100, Phase-II, Noida-201 305, Uttar Pradesh
Tel: 0120-4559212
Fax:0120-4324818
Mob.: 8588840612
Email: alplgreaternodia@gmail.com
atharvalabpvtltd@gmail.com

26. EKo Pro Engineers Private Limited, Ghaziabad,

Mr.Amit Saxena (Quality Manager),
32/41, South Side of G.T.Road, UPSIDC Industrial Area,
Ghaziabad-201009, U.P.,
Mobile :+91 9810243870
Email: ekoproengineers@gmail.com

27. Food Analysis and Research Laboratory (FARL), Allahabad

Mr. Rahul Agarwal,
Centre of Food Technology,
Science Faculty Campus, University of Allahabad,
Allahabad-211002
Tel: 0532-2460289,
Fax:0532-2460289
Mobile:+91 9450586942
Email : farlcft@gmail.com, qacellcft.@gmail.com

28. National Test House (Northern Region), Ghaziabad

Mr. Buddh Prakash (Scientist SB (Chemical),
Kamla Nehru Nagar, Ghaziabad-201 002
Tel : 0120-2783276, 2789493,
Fax: 0120-2789883
E-mail : nthnr-ca@nic.in

29. Regional Food Research & Analysis Centre (Department of Horticulture and
Food Processing, U.P.), Lucknow
Dr.S.K.Chauhan (Director)
Udyan bhawan Campus, 2-Sapru Marg,Lucknow-226001
Uttar Pradesh,
Tel: 0522-4008358, Mob: 7052157777
E-mail: rfraclko2015@gmail.com
 96

30. Cali-Labs Private Limited, Indore

Mr.V.G.Narula (Director)
HX-21, E-7, Arera Colony,
Bhopal-462016, Madhya Pradesh
Tel:0755-4218014, Fax:755-2461836
Mobile:Calilabs@gmail.com

31. QTTL Lab Private Limited, Indor

Mr.Jayesh Agarwal (Director)
301-302 Labbaiq Regency, 4/2 Old Palasia,
Indoare-452 009, Madhya Pradesh
Tel:0731-3062786, 4021739

32. Anacon Laboratory Private Limited, Nagpur

Dr. S.D.Garway (Technical Manager)
FP-34, 35 Butibori Food Park, Five Star Industrial Estate,
Nagpur-441122, Maharashtra
Tel:0712-2242077
Mobile: 09823167077
Email:labngp@anacon.in, anaconngp@gmail.com

33. Ashwamedh Engineers & Consultants, Nasik

Mrs. Aparna S. Pharande (CEO),
Survey No. 102, Plot No.26,
Wadala Pathardi Road, Indira nagar, Nashik-422009,
Maharashtra
Tel:0253-2392225, 2391835 (direct), Fax. No.0253-2392225
Mob.:09325385516/9822261081
Email:sales@ashwamedhi.net,
ashwamedhi_nashik@hotmail.com, aparna@ashwamedh.net

34. Doctor’s Analytical Laboratories Private Limited, Mumbai

Mr. Anand D.Sathe (Director-Technical)
Plot No.R.809, TTCMIDC Rabale,
Off. Thane Belapur Road, Rabale,
Navi Mumbai-400701
Tel.No.022-27600240, Fax No.022-65172645
Mob.:9769918541
Email: ashay.mehta@dalpl.co.in, anand.sathe@dalpil.co.in

35. Equinox Solutions, Navi Mumbai

Mr. Ashwin Bhadri (General Manager),
Equinox Centre, R 65, TTC,
Rabale, Navi Mumbai-400 701
Tel:022-27644111
E-mail: ashwin@equinoxlab.com, info@equinoxlab.com
 97

Annexure – II

Lab Equipment Suppliers

S. No. Name & Addresses of Suppliers

Esquire Biotech, Chennai

1. A. Siva Sankar
Email: esquirebiotech@gmail.com, Call: 08048764236

Agaram Industries, Chennai

2 Bharathwaj S
Email: bharathwaj@agaramindia.com , Call: 08048763944

Industrial & Commercial Services, Hyderabad

3. Rammohanrao Malka
Email: icsindia9@gmail.com , Call: 08048757878

Allied Biotechnology India Private Limited, Mumbai

4. Yashwant Patidar
Email: alliedbiotech1@gmail.com, Call: 08048406318

Toshniwal Brothers SR Private Limited, Bengaluru

5. Anuj Toshniwal
Email: blr@toshniwalbros.com, Call: 08043255684

Multitech Instrument Co Pvt Ltd, Delhi

Yogesh Kapoor
6.
Email: multitechics1990@gmail.com
Call: +919313633490, +911122434362

Micro Tech Diagnostics Centre, Coimbatore

7. Raj Kumar
Email: rajkumarsmicro@gmail.com, Call: 08048751434

Chennai Testing Laboratory Private Limited, Chennai

8. TGH Ashok Kumar
Email: chennaitestinglab@gmail.com, Call: 08071875136

Chandra Chemicals, Ghaziabad

9. Saurabh Gupta
Email: chandrachemicals2002@gmail.com, Call: 08048015564

Pollucon Laboratories Pvt. Ltd., Surat

10. Harshal Gandhi
Email: info@polluconlab.com, Call: +919328967080, +912612635750

Bio- Man India, New Delhi

11. Surender Bhatnaagar
Email: biomanindia@bol.net.in, Call: 08071603563.

Hanna Equipments India Private Limited, Navi Mumbai

12. K S Metkari
Email: kondiba.metkari@hannainst.in, Call: 08046049139
 98

Annexure – III

Availability of Technology of Sugarcane Products in India:

S. Name of Institute: Place/State
No.
National Institutions
1. Sugarcane Breeding Institute Coimbatore, Tamilnadu
2. National Sugar Institute Kanpur, UP
3. Indian Institute of Sugarcane Research Lucknow, UP
State Research Centres:
4. Sugarcane Research Station Anakapalle,AndhraPradesh
5. Regional Agricultural ResearchStation Rudrur, Andhra Pradesh
6. Agricultural Research Station Perumallapalle, AP
7. Sugarcane Research Sub-station Vuyyaru, AP
8. Sugarcane Research Sub-station Jorhat, Assam
9. Sugarcane Research Sub-Station Buralikson, Assam
10. Regional Sugarcane Research Station Kodinar, Gujarat
11. Main Sugarcane Research Station Junagarh, Gujarat
12. Regional Sugarcane Research Station Thasra, Gujarat
13. Regional Sugarcane Research Station Navsari, Gujarat
14. Regional Research Institute Uchani, Haryana
15. Sugarcane Research Institute Pusa, Bihar
16. Agricultural Research Institute Patna, Bihar
17. Sugarcane Research Station Thiruvalla, Kerala
18. Regional Research Station Mandya, Karnataka
19. Agricultural Research Station Sankeshswar, Karnataka
20. Agricultural Research Station Gangavati, Karnataka
21. Central Sugarcane Research Station Padegaon, Maharashtra
22. Regional Sugarcane Research Station Kolhapur, Maharashtra
23. Sugarcane Nursery-cumdemonstrationFarm Deolalipravara, Maharsatra
24. Central Sugarcane Research Station Akola, Maharashtra
25. Regional Sugarcane Research Station Basmathnagar, Maharastra
26. Sugarcane Research Centre Dapoli, Maharashtra
27. Main Sugarcane Research Station Sehore, Madhya Pradesh
28. Sugarcane Research Station Jaora, Madhya Pradesh
29. Regional Research Station Bagwai, Madhya Pradesh
30. Regional Research Station Chiplima, Orissa
31. Sugarcane Adaptive Trial Sub-station Rayagada, Orissa
32. Sugarcane Adaptive trial sub-station Barpoli, Orissa
33. Sugarcane Research Station Jalandhar, Punjab
34. Regional Research Station Kheri, Punjab
35. Regional Research station Gurdaspur, Punjab
36. Agricultural Research Station Borkhera, Rajasthan
37. Agricultural Research Station Srigananagar, Rajasthan
38. Agricultural Research Station Udaipur, Rajasthan
39. Sugarcane Research Station Cuddalore, Tamilnadu
40. Sugarcane Experiment Sub-Station Cuddalore, Tamilnadu
41. Sugarcane Experiment Sub-Station Gudiyatham, Tamilnadu
42. Agriculture College and ResearchInstitute Madurai, Tamilnadu
43. Sugarcane Research Station Shahjahanpur, UP
44. Sugarcane Research Sub-Station Muzaffamagar, UP
45. Sugarcane Research Sub-Station Gorakhpur, UP
46. Sugarcane Research Sub-Station Gola Gokarannath, UP
47. Genda Singh Sugarcane Breeding- Cum- Seorahi, UP
Research Station
 99

48. Sugarcane Research and seed Multiplication Laxmipur, UP

centre
49. Sugarcane Research Sub-Station Kashipur, Uttrakhanad
50. Sugarcane Research and Seed Multiplication Modipuram, UP
Centre
51. Crop Research Centre Pantnagar, Uttrakhanad
52. C.S.Azad University of Agriculture and Kanpur, UP
Technology
53. Sugarcane Research Station Bethuadhari, West Bengal
Research centres of Industrial Houses :
54. 1. Vasantdada Sugar Institute Pune, Maharashtra
55. 2. K.M.Sugar Mills Ltd. Motinagar, UP
56. 3. E.I.D. Parry Ltd. Nellikuppam, Tamilnadu
57. 4. Godavari Sugar Mills Ltd. Sameerwadi, Karnataka
 100

Annexure – IV
State Khandsari License Policy of Uttar Pradesh
101
102
103
104
105
 106

Annexure – V
State Khandsari License Policy of Madhya Pradesh
107
108
109
110
111
 112

Annexure – VI
State Khandsari License Policy of Maharashtra

Government of Maharashtra
Commissionerate of Sugar, Maharashtra State

License for manufacturer of Khandsari

Subject to the provision of the Maharashtra Khandsari Manufacturers Licensing Order, 1979
and to the terms and conditions of this licence the Jotirlng Sugarcane Process Pvt. Ltd., Village
Jamblewadi , Po. Ingrul , Taluka Shirala , District Sangli is/are hereby permitted to manufacture
Khandsari or rab for conversion into Khandsari sugar in Village Jamblewadi , Po. Ingrul, Taluka
Shirala , District Sangli Subject to the following conditions:-

a. Power crusher of size … 1 (One) of 12”x14”

b. Bels with 16 (Sixteen) animal driven kolhoos
c. Power driven cenrifugals … 1 (One)
d. Hand driven centrifugal …

Conditions of the license:-

I. The licence is not transferable.

II. The licenrisee shall use power crusher, bel or centrifugal only for the purpose for which the
licence has been issued.
III. The licensee shall not carry out any extensions additions of alteration in the capacity, number
and size or change in the location of a power crusher, bel or centrifugal covered under this
licence without the prior permission of the Licensing Authority.
IV. The power crusher of Khandari Unit shall not be disposed of or sold to another person/firm
society, without previous permission of Commissioner of Sugar, State of Maharashtra and the
licensee shall inform of such transaction to the Licensing Authority Comissioner of Sugar
within a week of such transaction.
V. The licensee shall maintain a register of daily accounts for sugarcane, Khandsari and rab for
manufacture of Khandsari showing correctly.

a) The opening stock of sugarcane Khandsari and bar on each day:

b) The quantity of sugarcane received on each day showing the place from where, the sources
from which and the person from whom purchased, rate at which it is purchased and the
price paid for the same:
c) The quantities of khandsari manufacture and manufacture and or otherwise removed on
each day showing the places of destination;
d) The quantities of rab used for manufacture of khandsari and the closing balance of rab
unused at the end of each day;
e) The khandsari sold, to whom it is sold and the rate at which it is sold;
f) The closing stock of sugarcane, khandsari and rab on each day;
 113

g) The licensee shall complete his accounts for each day on the day to which they relate,
unless prevented by reasonable cause the burden of proving of which shall be upon him;
h) Separate register shall be maintained for sugarcane, khandsari and rab produced for
manufacture of khandari.
VI. The licensee shall give all facilities at all reasonable time and shall allow to the Licensing
Authority or any order authorized by him for inspection of this stocks and accounts at any
factory, Shop, godown or other place used by him of the manufacture or storage of sugarcane,
khandsari and rab, and for the taking of samples of the said commendities for examination. The
licensee shall also be bound to produce on demand without prior notice records which he is
required to maintain for inspection and examination.
VII. The licensee shall submit to the licensing authority concerned a true return in Form-D in
Schedule-I appended to the Maharashtra Khandsari Manufactures Licensing Order, 1979, of
the stocks, receipts and deliveries of each of sugarcane, khandsari and rab every fortnight (Ist
to 15th and 16th to end of month) so as to reach him within five days after close of the fortnight.
VIII. The licensee shall not contravene the provisions of the Maharashtgra Khandsari
Manufacturers’ Licensing Order 1979, and any other order relating to foods stuffs issued under
the Essential commodities Act, 1955 (10 of 1955). He shall comply with any direction that
may be given to him Licensing Authority in regard to purchase of sugarcane and sale and
storage for sale of khandsari, in regard to the points mentioned in condition (v) and for the
taking of samples of the said commodities for examination.
IX. The licensee shall not purchase any sugarcane without actual and correct weighment and shall
maintain proper record for the same and shall pay reasonable price for the same within a
fortnight from the date of supply of sugarcane.
X. The licensee shall recover the co-operative dues as per lists furnished to him by the co-
operative institutions from the cane price paid to the cane supplying cultivators and shall credit
the whole amount of such recovery to the co-operative institutions concerned within five days
from the date of recovery, under intimation and with a copy to licensing authority.
XI. The licence is liable to be suspended or cancelled by the licensing authority for breach of any
of the conditions of the licence, provisions of the Maharashtra Khandsari Manufactures
Licensing Order 1979 and the directives given in this behalf by the Licensing Authority. The
power crusher, the bels and the centrifugals covered by the suspended licence shall not be
commissioned again till the suspension, order is withdrawn.
XII. The licence shall be attached to any application for renewal.
XIII. The licence unless suspended or cancelled shall remain valid from 01/10/2014 to 30/09/2015.

(Dr. Vipin Sharma)

Licensing Authority and
Commissioner of Sugar,
Maharashtra State, Pune

No. Dev-II/Khandsari License 2014-15/ /2015

Office of the Commissioner of Sugar,
Maharashtra State, Sahkar Sankul,
Shivajinagar, Pune-411005.
Date:
 114

Annexure - VII

Photographs of Study Visit of Khandsari units and Meetings with

Stakeholders

Sugarcane crop in Distt. Sitapur

Weighing Section of Sugarcane before Crushing

 115

Chopping of Sugarcane in Lakhimpur

Crushing Unit in Lakhimpur

 116

Fibrisation Section of Khnadsari Unit

Juice Extraction & Filteration from Sugarcane in Lakhimpur Kheeri

 117

Sulphitation Process of Sugarcane Juice

Open Pan Drying of Sugarcane

 118

Crystallisation Process in Khandsari Sugar Unit

Non Sulphur Sugar in a Khandsari Sugar Unit in Dhanaura Distt Amroha

 119

Drying of Khandsari Sugar after Crystallization

Khandsari Sugar being packed finally

 120

Khandsari Sugar Crystals

Gur Manufacturing Unit in Vill & Post- Jharekhapur, Distt- Sitapur

 121

Drying of Bagasse in a Unit at Vill & Post- Jharekhapur, Distt Sitapur

Meeting with Khandsari Sugar manufacturers in a Unit at Dhanaura, Distt Amroha

 122

Meeting with Jaggery (Gur) Manufacturers at Dhanaura, Distt. Amroha

Meeting with Khandsari Unit Owners in O/o GM, DTIC, Narsinghpur, M.P
 123

Meeting with President All India Khandsari sugar Mills, Karad, Distt Satara, Maharashtra

MSME-DI, Kanpur & Mumbai officers during the Visit of a Khandsari Unit, at Maharashtra
 124

Visit of Diamond Sugar Works Karad, Maharashtra

Diagram showing Sugar from Sugarcane and its By-products