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Monday, July 27, 2009

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.

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