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How to Make Money from Jaggery Production in India

Introduction to make money from Jaggery production

The sugar industry in India is well-built and is considered as one of the major sectors after the textile. It provides rural occupation prospects and plays a vital role in the economy. Jaggery is also manufactured from sugarcane juice and is broadly consumed in households, restaurants, eateries, sweetmeat shops, etc. In crude form, it has industrialized applications too. In rural areas, it is also a standby for sugar. Sugar is an expensive product as equated to Jaggery; production of sugar involves many procedures and is capital intensive. Jaggery production in India is modest and does not require a large investment. There are different types of Jaggery in India.

Ideas to start and make money from a Jaggery production unit in India

Jaggery is typical Indian merchandise and finds extensive application in everyday food preparations. Jaggery production is a rural business and can be made in sugarcane farming states such as U.P, Bihar, Maharashtra, Gujarat, etc. These are the areas where you can find the highest Jaggery production in India.

The market potential for Jaggery production to make huge money

Jaggery is one of the old-style items of several ingredients in the Indian way of cooking. The demand for Jaggery in India can be found both in the rural as well as the city. It finds uses in everyday cooking. Unlike sugar, the market of Jaggery is seasonal for the period of the harvesting of sugarcane. It has a low shelf life and is usually available for about six months in a year. Conventionally the unit is a rural business and should be positioned near the area of its cultivation to decrease the conveyance cost. The unit does not need elaborate set-up and usually, the sugarcane juice is baked in open pans. The prerequisite of utilities is 40 HP and 3000 L water will be desirable for production purposes. Production of Jaggery is limited to the sugarcane growing regions as such the units are typically located in Bihar, UP, Maharashtra, and Tamil Nadu.

Since it is an element of food consumption its market is ever-increasing and any new Jaggery manufacturing units in India may not face any trouble in advertising its product.

Jaggery making process

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Jaggery making process.
Jaggery making process.

Jaggery making is an easy process comprising crushing of sugarcane for juice extraction, then filtration and later on boiling of juice for concentration and then cooling and after that solidifying to give Jaggery blocks. The juice is removed in a conventional crusher; which is then filtered and boiled in shallow iron pans. During boiling step, chemical bleaching agents or even natural vegetable items like ladies’ fingers) are mixed to clean the juice and the inessential matter is constantly detached to give a bright golden color. The boiled juice is later left to cool in iron/ aluminum pots to make the Jaggery blocks. The size of these molds is exact and is subject to the weight of the block of Jaggery variable from 1kg onwards. The blocks are packed in jute cloth and shipped. The yield rate of Jaggery is around 10%, 100 kg of sugarcane produces 10kg of Jaggery. From this, you can easily estimate how much Jaggery is produced from 1-ton sugar cane.

The production capacity foreseen is 200 tonnes per season keeping in view the market. As per the studies, the future prospects of Jaggery would be high, because of its demand in the market. To get a better understanding you can visit a Jaggery or a sugar factory in India before starting your business.

Plant and machinery required for Jaggery production

The product does not need numerous items of machinery. Keeping in mind the manufacturing capacity of 200 tonnes per year the unit will need the following machines. The main plant and machinery needed are below.

  • Double roller sugarcane crusher with electricals – 1 No’s
  • Storage Tanks – 4 No’s
  • Steel pans for boiling – 2 No’s
  • Weighbridge 100 kg – 1 No’s
  • Iron scrapper with long handle – 4 Nos
  • Laboratory equipment – 1 set
  • The power need will be around 40 HP

Raw material and packing material required for Jaggery production

The basic raw material need is a proper quality fully grown matured sugarcane. For producing 200 tonnes of Jaggery the unit needs 2000 tonnes of sugarcane. The extraction of juice from sugarcane works out to around 45%. There is no trouble in obtaining a proper variety of sugarcane from the cane producing regions. Other components like Soda/ Bhindi (Ladies finger) are all locally obtainable. The unit will also need jute gunny bags for packing.

Land and building

For the smooth processing of the unit, it will need a small area of around 500 sq. meters with a built-up area of around 300 sq. meters including a storage facility.

Manpower required 

For smooth operations of the unit, the prerequisite of manpower is predicted to be about 10 persons.

  • Skilled workers required are 4 in number
  • Helpers required are 6 in number

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Investment or the cost to set up a Jaggery production unit in India

The Jaggery production cost is given below-

The total price of machinery is projected to be Rs.1,72,000/-.

The unit will also need miscellaneous possessions such as furniture, storage facilities, fixtures, sealing m/c, etc. The total charge of these is assessed to be Rs. 1,00,000

The value of raw material and packing material at full capacity use is projected to be Rs. 12,00,000 per year. At 60% capacity in the 1st year, the price works out to Rs. 7,20,000

The land cost is around Rs. 6,00,000

The annual salaries for workers are estimated to be around Rs. 2,40,000

The cost of repairs and management in the production unit is Rs. 30,000

The cost for utilities is Rs. 50,000

Miscellaneous charges are Rs. 10,000

So, the total cost for establishing a Jaggery production unit in India is Rs. 19,22,000.

Profit margin or  how much money can you make in Jaggery production in India

You can expect Jaggery production profit ranging from 40-60% in Jaggery production business in India. As it has the highest demand in the market. You need to provide good quality of Jaggery in different weights and sizes this will attract more customers to your business.

The government of India will soon release the Jaggery plant subsidy which will help the farmers as well the entrepreneurs to start the units.



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