India's Sugar Economy
Jaggery and Khandsari
How traditional sweeteners like jaggery (gur) and khandsari are made in small units, why farmers sell to them, and the growing market for jaggery as a healthier option.
Not all cane goes to sugar mills. Some becomes jaggery (gur) and khandsari.
Jaggery
- Made by boiling cane juice in open pans until it solidifies.
- Produced in small units called kolhus or gur bhattis.
- India is the world’s largest jaggery producer.
- Muzaffarnagar in UP has one of the largest jaggery markets.
Khandsari
A semi-refined sugar made in small units, less processed than mill sugar.
Why farmers sell to them
- Immediate cash payment, unlike mills that may delay.
- Flexibility in timing.
- Prices vary with market conditions.
Challenges
- Seasonal and informal work.
- Pollution from burning bagasse and waste.
- Quality and hygiene standards.
Growing demand
Jaggery is marketed as a healthier, less processed sweetener, with growing demand in cities and exports, including organic and powdered jaggery.
A farmer sells part of his cane to a nearby jaggery unit for immediate cash, even at a slightly lower price, because the mill hasn't paid last season's dues.
A significant share becomes jaggery and khandsari.
- Jaggery and khandsari are made in small units.
- India is the world's largest jaggery producer.
- Farmers sell for immediate cash.
- Jaggery's health image is boosting demand.
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