Attaining Sustainable Growth of the Indian Sugar Industry:Through Ethanol-Power Complexes

India is the largest consumer and the second largest producer of sugar in the world. Production is seasonal with bulk of sugar being produced between December and April. Maharashtra and Uttar Pradesh are the largest sugar producing states, together accounting for 55-60 in a sugar mill, one hundred tones of cane, on an average, produces ten tones of sugar, four tonnes of molasses, three tonnes of filter-mud, thirty tonnes of bagasse and 1500 kwh surplus electricity. Apart from these, about thirty tonnes of cane tops and leaves are generally left in the field when the cane is cut. Each of these by-products has economic value and if processed further, it can generate substantial revenues. The availability of these by-products has led to the setting up of integrated sugar complexes producing not only sugar, but also alcohol/ethanol/extra neutral alcohol/co-generation of power and organic manure. In the present paper an attempt has been made to study the existing revenue model of sugar mills in India and find out economic advantage that will accrue to sugar mills by value addition to its by-products like molasses and bagasse i.e. integrated by-product model. For the purpose of research researcher has used two models. The result of study indicates use of second model will generate additional revenue for Sugar Industry of India.