Going by consumer taste and demand in the market, sugar industry is soon expected to undergo branding and come up with varieties of specialty sugar  Sugar industry, worth Rs 60,000 crore, is one of the largest agro-based industries in India—a country that happens to be the largest consumer and second largest producer of sugar. Indian sugar consumption is growing at a CAGR of 3.75%. Since India imports sugar in years of deficit and exports it in years of surplus, the country has to engage in production of raw and refined sugar rather than plantation of white sugar. Change in process technology to produce refined sugar throws up possibilities of producing various types of specialty sugar. In order to bring stability in the sugar industry, it is also essential to ensure proper utilisation of the co-products such as power, anhydrous and hydrous ethanol, among others. The government is seriously considering deregulation of the industry, which is expected to bring changes in the sugar business, both at farm level and at sugar sale or marketing end.
Sugar being an essential commodity is highly regulated at present, be it raw material pricing or product sale. 20% of sugar is subsidised by the industry for public distribution system at almost 35% lower than the free sale price.
Sugar emerging as a branded commodity
Until now sugar as a commodity did not undergo branding as such. However, like other commodities such as wheat flour, vegetable oil, salt, tea and others, sugar too is likely to emerge as a branded product in future. In fact, a few sugar companies did turn to packing white sugar as a branded commodity but could not record much success, the reason being packed white sugar although gives an assurance of hygiene as compared to loose sugar, consumers are usually not satisfied with value for price of packed sugar.
Specialty sugar
In the absence of big branding, brand equity for white sugar led to the idea of specialty sugar products such as sugar cubes (white and brown), sachets, mineral sugar, breakfast sugar, icing sugar, candy sugar, Demerara sugar and others. These specialty sugar varieties offer value to consumers in terms of taste, form and packaging.
Specialty sugar segment can be broadly classified into retail, food and beverage, pharma and candy bulk. From refined sugar, 21 types of specialty sugar can be made. A few varieties of flavoured sugar are being marketed by companies besides sugar manufacturers and are receiving positive response from consumers. Various types of specialty sugar in different sizes, colours, shapes and packing are available in modern departmental stores as well as retail chains. For instance, Demerara sugar is a global name for brown sugar or coffee sugar, which is seen to be preferred more by consumers over white sugar.
Specialty sugar like icing sugar is preferred for making cakes and therefore has a specialised use. Mango, coconut, lemon and orange flavoured sugar, which are considered healthy, are apt substitutes to be used in drinks.
Road ahead
When release mechanism is removed and sugar manufacturers are free to sell sugar in the market as per consumer needs and demands, the market branding of sugar, particularly specialty sugar segment, is bound to grow and prosper. With expected 25 million tonnes of sugar production in 2010-11 and 24 million tonnes of consumption, both sugar production and consumption are bound to increase lineally. It is believed that sugar consumption will touch 35 million tonnes in the next decade. Therefore, there is huge potential for specialty sugar depending on how well one presents and markets the packs.
Dr. G S C Rao, president of Sugar Technologists’ Association of India |
