NEED FOR CHANGE IN PROCESS

TECHNOLOGY

Narendra Dev
Junior Technical Officer (ST)
National Sugar Institute, Kalyanpur,Kanpur
Mob:9415429330/7376498304
E-mail: ndevgnsas@gmail.com
EDUCATION IS NOT READING AND
WRITING
BUT
LEARNING, UNLEARNING AND RE-
LEARNING
STATUS OF INDUSTRY

Despite being the largest producer of

sugar in the World, Indian Sugar is not on
the world map
WHY ?
Because of the
quality of Sugar ?
 INDIAN SUGAR INDUSTRY

Sugar Production - Largest in the World

Total sugar production - 20 million M.T.
Factories in operation - 416 Nos.
Current ProcessTechnology - Double sulphitation
Sugar quality - Direct Plantation
White Sugar (above 100 I.U.)
PRODUCTION AND CONSUMPTION
Facts Year 2002-03 Year 2003-
04
(in lakh M.T.)
Sugar production - 201 150*
Domestic consumption - 183 174
Export - 15 2.7
Carryover stocks - 113 134
Needs
Liquidation of carry over stocks through export
Produce internationally acceptable sugar
Produce high quality sugar to meet the stringent norms
of beverage and pharma industry
Initiating the Indian consumers to high quality sugar
* Source ISMA(Provisional)
 World sugar trade and
carry over stocks
Carry over stocks in
World sugar trade India
world sugar trade 120
india,s
share 100
3%
refined 80
sugar raw sugar 60
42% 55% sugar stock
40

20

raw sugar refined sugar india,s share 0

1999- 2000- 2001- 2002- 2003-
2000 2001 2002 2003 2004
CURRENT SITUATION - 1
( Sugar Projections )
(Lac Tonnes)
Year 2004-05 2005-06 2006-07 2007-08
Domestic Demand(@
185 189 193 197
2% CAGR)
Domestic Production 140 130 170 200

Carry Forward Stocks 115 80 40 40

Balance 70 21 17 43

Raw Sugar Import 10 25 25 0

Final Carry forward

80 46 42 43
Stock
CURRENT SITUATION – 2

Shortages to continue for a minimum of 3 years

i.e. Prices will be bullish
Maharashtra – to produce ~ 20L Ton(04-05);
40L Ton (05-06) & 40 L Ton (06-07).
Further, Not certain as to how many mills will
run in UP , Bihar & Maharastra due to sickness
Organic growth in demand for Nepal &
Bangladesh will further accentuate shortage.
EXPECTED PRICES (US$)
270 270

265
262
260
255
255
250
247
245
240
240
235
230
225
'04-05 '05-06 '06-07 '07-08 '08-09

Assumptions : Secular price growth of 3% CAGR

Global demand is inelastic
CURRENT WORLD PROCESS
TECHNOLOGY ADOPTED ALL OVER THE WORLD
EXCEPT IN A FEW THIRD WORLD COUNTRIES IS
RAW AND REFINED SUGAR PROCESS
(Production of raw sugar first and then
refining)
PROCESSES IN INDIA

The process technology adopted in the

country now is
• Double sulphitation process

• Till recently double carbonation and

double sulphitation was in vouge
DEMERITS OF DOUBLE SULPHITATION PROCESS

Processing at low pH hence high inversion losses

Very high scaling of the heat exchangers, requires
frequent cleaning and shut downs
Sugar quality not at par to international standard
Very intensive corrosion in the plant and machinery
Self life of sugar is 6-8 months and reprocessing of
sugar sometimes is required.
High content of sediments, ash, and sulphur makes
the sugar unsuitable for bulk consumers.
Sugar quality depends upon the cane quality.
 Need of the Hour
INDIA, NEEDS TO PRODUCE SUGAR
WHICH HAS EXPORT/IMPORT
POTENTIAL WHICH CAN EITHER BE
RAW OR REFINED
THEREFORE, PROCESS TECHNOLOGY
HAS TO BE CHANGED TO CONVERT
EXISTING PROCESS TO PRODUCE
INTERNATIONAL QUALITY SUGAR AND
ALSO TO PROCESS RAW SUGAR
WHAT IS THE ALTERNATIVE ?
Production of International quality sugar, in case
sugar is surplus it can be exported and when sugar
production is low, Raw sugar is imported and
converted to Refined sugar.

Two process are in use world wide :-

Defeco-remelt phosphitation and ion exchange
process
Defeco-remelt carbonation and ion exchange
process
 Raw Sugar Process

cane concentration

crystallization Raw
juice sugar

Crystal separation
clarification
Refined Sugar Process
Raw Sugar Crystalli-
Polishing filter zation
Two Stage
Melting

Curing
Ion exchange
Screening
Two stage

Refined
Clarification sugar
and filtration
ADVANTAGES OF INTEGRATED SUGAR REFINERY

Sugar confirming to international standards

Facility to process raw sugar.
Purification through re-crystallisation
Processing at neutral pH, hence less chances of
inversion
Fewer scaling in the heat exchanger hence no down
time
Corrosion in the plant and machinery is reduced.
No deterioration of sugar hence no reprocessing
 SPECIFICATION OF SUGAR

Specifications Sulphitation Refined

Sucrose 99.5-99.7 99.90-99.95
Colour in I.U. 100-250 < 50
Ash 0.05-0.10% 0.025%
Sediments ppm 100-400 2-5
Sulphur ppm. 20-70 <5
FEATURES OF REFINED SUGAR
Colour less than 45 IU permanent white –EC II standard
free from Insoluble and sediments
Ash not more than 0.025%
Does not give flocks in solution
When dissolved in water the solution is white and crystal clear
Does not give colour to any product where sugar is a major
constituents.
Remain white after long storage
Does not attract moisture
OPPORTUNITY : COST OF RAW SUGAR

C&F Price / Ton : Rs.10,000

Handling Charges/ Ton : Rs. 2,000
Conversion/ Ton : Rs. 1,500
Total/ Ton : Rs.13,500
OPPORTUNITY : UP ON COMPETITION
Opportunity to cement our position as proactive
mills.
Gain of Molasses for distillery
Loss of opportunity if customs duty is reduced
Loss of opportunity if Govt. does away with even
part of export commitment in view of domestic
shortage as one time concession
MOUSE TRAP – SITUATION

Uncertainty of domestic prices

Uncertainty of international prices
Compulsion to export 20000 Tons in 2 year
window
Uncertainty of window prolongation beyond
2 years I.e. Upto Oct’2008.
Keeping - Quality
50 KG BAGS OF S,M AND L SUGAR
A VIEW OF REFINERY SECTION
STATIC BED FILTER
ANOTHER VIEW OF REFINERY SECTION