Indian Sugar and the poor Monsoon

After India's driest June in 83 years, four of 28 provinces have declared drought, and many farmers don't have enough water to grow a full crop. More than half of Uttar Pradesh state, the most populous state and a key area for farming rice and sugar cane, is suffering from drought. Rainfall between June 1 and July 22 was 19% below normal, with the northern and northwestern regions worst hit.

60% of India's farmland is rain-fed, with the rest relying on irrigation. If rainfall remains sporadic through September, winter-crop yields, such as wheat, could also be hurt, analysts said.

One of the most water intensive crop is sugarcane, and the drought in Uttar Pradesh has had a global impact on Sugar prices. Prices have more than doubled from 10 cents a pound to more than 20 cents a pound now.


Brazil, the largest sugar producer in the world, will benefit, as India moves to import upto a third of its needs. Only 2 years ago , India was an exporter of sugar.

As the demand for water in India is increasing from 634 BCM (billion cubic metres) in 2000 to 813 BCM in 2010, 1443 in 2020, dependence on the monsoon will be increasing manifold in the years to come.

Under the circumstances, carefully designed investment strategy on low-cost but effective watershed management, restoration and management of natural water bodies with the help of peoples’ participation would go a long way in mitigating the impact of monsoon.

Diverting China's Water

In North China, lack of rainfall has exacerbated a long term problem in a very dry region. declining water tables and the increasing urban population is forcing agricultural intensity. In the last 12 months, more than 100 rainless days was a record in recent decades.

The Northern half of China has over 40% of the country's population, more than 50% of the arable land and much industry due to its coal reserves – yet less than 20% of the nation's water.

Most of the Water is in the South of China.

China said last month that it would spend 21.3bn yuan on the next phase of its ambitious water diversion project to help the arid north. The multibillion dollar scheme, which will take up to half a century to complete, will connect the Yangtze, Huaihe, Yellow and Haihe rivers. It will require the creation of east, middle and western channels and will eventually divert 44.8bn cubic metres of water annually. The first phase of the eastern programme will begin to deliver water by 2013.

The scheme was first conceived in the fifties, but that many people believed its time had come because the situation in the north was now so dire. This will not fill up the whole gap, conserving water is the most urgent priority that needs attention.

Meanwhile in Beijing
Beijing’s water supply will reach crisis point in 2010. Probe International, a Canadian environmental group, estimated in a report in June that with Beijing’s reservoirs down to one-tenth of their capacity, two-thirds of Beijing’s water supply was now being drawn from underground.
Beijing has been trying to reduce demand by increasing water tariffs, which are far too low to cover costs. Xinhua reported that the city government was considering a plan to charge residents two to five times more for water if they exceed a monthly quota. Boosting prices might also encourage recycling. Probe International said Beijing’s industries were now recycling 15% of their water consumption, compared with 85% in developed countries.