Why is Sugar Cane famous in Punjab?
Punjabis are well known for preparing and consuming good food. Punjab sugar industry was under financial crisis. The cost of production of sugar became very high compared to the price at which it was sold in the market. The farmers were expecting to get high price for the sugarcane while the sugar mills were able to pay only very little comparatively. The cost of sugarcane has to come down if the market price of sugar has to diminish. Punjab sugar industry has taken steps to make use of mechanized pit planning as a novel method in agriculture. This method was found to increase the yield of sugarcane.
This high demand for sugar and simultaneously low yield of sugarcane has resulted in enhancement of sugar prices in Punjab. To balance the scenario, the sugar mill owners are pressurizing the farmers to grow more sugar cane and earn more money. Few years back cultivation of sugarcane was not favourite for the farmers. The area under cultivation has reduced from 2.35 lakh hectares in 1997 to 1.02 lakh hectares in 2009.
As the Government policies are favorable now and due to the increasing price for sugarcane the farmers today are coming forward to sow sugarcane. For growing 100 quintals of sugarcane Rs.20 per kg subsidy is been given by the government. As the price of sugar has risen, farmers are now more interested to grow sugarcane. Government of Punjab is taking care to enhance the production of sugar by increasing the capacity of sugar extraction around 43,000 tonnes per day in the sugar mills. The total budget was calculated to be around Rs. 1.73 crores and its details are discussed in the cabinet. The demand for sugar export as well as local consumption has increased and hence Punjab farmers are showing more interest to grow sugarcane. The unused mills are also remodeled for usage. Proper understanding between the farmers and mill owners has made Punjab now one of the leading sugarcane producing states.