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supply chain of sugar
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| Words: 4545 | Submitted: 04-Apr-2011
95.3% | Number of pages: 11 | Filetype: Word .doc
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Descriptionit gives the details of how the supply chain in the sugar industry works
Supply Chain Management of Sugar Derivatives
Sugar cane has been recognized as an important industrial crop. Sugarcane Seed, Nursery Development, Cultivation, Harvesting , Milling, Production of Derivatives such as Sugar, Molasses, Bagasse, Alcohol require Logistic Infrastructure, Planning, Implementation to maximize its Competition in WTO era of Global/Domestic Trade. Increasing uncertainty in export commodity prices and a concurrent
Narrowing of margins in its terms of trade has challenged the Sugar industry in recent years.
Sugar industry constitutes one of the most important agro-based industries in India. It started growing in an organized way during the 1930 after introduction of the sugar industry protection act in 1932. Sugar industry directly provides employment to 45 million i.e., 7.5% of rural population engaged as sugar cane farmers, agricultural laborers and dependents, employs 0.5 million skilled & semi-skilled workers. In aggregate employment by sugar industry is generated for more than Five million persons.
By its locational feature of rural deep landmass, several self-sustaining service areas have been opened up. No other industry can become a fountain socio-economic upswing as the sugar industry happens to be in the rural sector. It is considered as engine of rural development and socio-economic upsurge.
In the sugar industry, management of the supply chain is changing considerably in response to the often-difficult market environment. Market forces present real challenges to wholesalers and retailers but are exceptionally problematic for primary producers who often lack the knowledge to manage these new and dynamic relationships. The future of the sugar industry is reliant on retaining active farmers, and new entrants will only be attracted if they perceive a viable long-term future.
Food manufacturers and retailers increasingly demand consistent quality and on-time products from their suppliers. In recent years, considerable emphasis has been placed on rationalising the economic value chain to reduce excess costs and increase efficiency.
The transport component of the sugar cane supply chain is one area where significant savings can be realised, at a relatively low cost. “One of the main causes of the inefficiencies is the lack of a single centre to coordinate the system holistically. In the absence of dynamic vehicle scheduling, a typical sugarcane transport system symptomatically exhibits excessive queuing times, large numbers of no-cane-stops, significant over fleeting and poor vehicle utilization.”
A high level of cooperation is required between farmers, harvest contractors, transport contractors and mill managers to make sure the mill receives a steady stream of fresh cane. The logistics of when each field of cane is harvested, and how it is transported to the mill have to be carefully coordinated.
India is the world's largest sugar consumer, accounting for about 23% of total global consumption. The consumption of white sugar in India is generally urban based; in rural areas the alternate sweeteners Gur ...
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