Jaggery Production and Processing in India

India produces over 70% of the world’s jaggery (gur), making it the global leader. The unrefined agro-processing sector consumes about 11–15% of the country’s sugarcane, generates over 400 million US dollars, and supports roughly 2.5 million rural livelihoods across the country

Jaggery, commonly known as gur, is a traditional, unrefined, natural sweetener. It is produced by concentrating sugarcane juice without the use of chemicals. Often called “medicinal sugar”, it is nutritionally comparable to honey. Jaggery is widely consumed across Asia, Africa, Latin America, and the Caribbean under various local names. It is valued for its natural origin, traditional processing methods, and growing consumer preference for chemical-free sweeteners.

India accounts for over 70 percent of global jaggery production. This makes it the world’s largest jaggery producer. Nearly 20–30 percent of the country’s sugarcane production is used for jaggery production. It is one of the major agro-processing industries in rural India. The sector is marked by decentralised processing, low transport costs, small-scale entrepreneurship and cottage industries. It supports approximately 2.5 million livelihoods.

Sweetening Growth: India’s Expanding Jaggery Economy

India’s jaggery sector is supported by substantial sugarcane production. In 2024-25, total sugarcane output was estimated at 444.9 million tonnes (MT). Uttar Pradesh contributed 48.5 percent of total production, followed by Maharashtra (24.1 percent) and Karnataka (10.5 percent). Other producing states include Gujarat, Tamil Nadu, Bihar, Uttarakhand, Punjab, Madhya Pradesh, and Haryana.

India is one of the leading exporters of jaggery and confectionery products (including traditional Indian sweets and candies). In 2015-16, exports stood at USD 197 million with a volume of 292.8 MT. By 2024-25, exports increased to USD 406.8 million with a volume of 471.9 MT. This is a rise of about 106.5% in value and 61.2% in volume over the period. Major export destinations in 2024-25 included Indonesia, the USA, the UAE, Nigeria, and Nepal.

If we compare year-on-year growth, exports during April-January (2025-26) reached 450.1 MT, valued at USD 384.4 million, registering an increase of about 16.5% in volume and 15.9% in value over the same period in 2024-25, when exports stood at 386.2 MT, valued at USD 331.4 million.

Domestic demand for natural sweeteners has also increased. In the sweetener segment, jaggery and honey have recorded a compound annual growth rate (CAGR) of 15–20 percent during 2021-24. Jaggery sales in domestic markets had reached approximately 5,000 metric tonnes annually by August 2024. This indicates growing consumer preference for traditional and natural sweetening products.

Jaggery for Nutrition and Public Health

Jaggery is increasingly recognised as a superfood, a natural, nutrient-rich alternative to refined sugar. Jaggery is produced from concentrated sugarcane juice without chemical refining. It therefore retains essential minerals and micronutrients that are typically lost during the sugar-refining process. In India, sugarcane is processed into jaggery, khandsari, and sugar through distinct production methods. Jaggery is the most naturally processed of the three, and nutritionally the richest. Jaggery is widely used in a range of traditional foods and in liquid form. Its demand is steadily increasing, driven by growing health consciousness and a consumer shift towards natural sweeteners.

Besides its traditional use, jaggery is increasingly recognized as a healthier sweetener in processed foods such as bakery and confectionery products. With the continued expansion of this sector, jaggery variants such as cane jaggery, palmyra jaggery, and raw jaggery are progressively gaining market presence. This shift reflects evolving consumer preferences for natural, minimally processed foods.

Jaggery retains most of the nutrients present in sugarcane juice, making it one of the most nutritionally rich natural sweeteners. It retains minerals like calcium, magnesium, potassium, phosphorus, sodium, iron, zinc, copper, and manganese that are lost in the intense refining for white sugar. A good-quality jaggery typically contains more than 70% sucrose, small amounts of glucose and fructose, and about 5% minerals, with low moisture content. Iron content (about 10-13 mg per 100 grams) contributes to improved haemoglobin levels, while potassium and magnesium support cardiovascular and muscle function.

Jaggery also contains trace amounts of vitamins, including folic acid and B-complex vitamins, as well as vitamins A, C, D, and E. These micronutrients make jaggery an energy-rich food that can help address deficiencies in these nutrients. Its mineral salt content is significantly higher than that of refined sugar. This makes it a suitable alternative for dietary supplementation, particularly in undernourished populations.

Jaggery provides sustained energy because its complex sucrose is digested slowly. It therefore releases energy gradually rather than causing rapid spikes in blood glucose. Iron gets absorbed during preparation in traditional iron vessels, making it beneficial to address anaemia. The presence of mineral salts and micronutrients supports overall health and strengthens immunity.

In traditional practices, like Ayurveda, jaggery has long been utilized as a therapeutic sweetener. Ayurvedic medicine considers it beneficial in treating throat and lung infections and supporting digestion. Its cleansing properties aid in detoxifying the respiratory tract and gastrointestinal system. This makes it especially beneficial for individuals exposed to dust and environmental pollutants. Its thermogenic (warming) effect is associated with relief from cough, congestion, and related respiratory discomfort.

Furthermore, jaggery is regarded as a natural detoxifying agent that supports blood purification. It is also believed to reduce fatigue, promote muscular and neural relaxation, and help maintain blood pressure. The presence of essential minerals such as calcium, phosphorus, and zinc supports bone health. Its reported anti-toxic and potential anti-carcinogenic properties contribute to overall physiological well-being.

Jaggery’s Role in Rural Development

Jaggery production in India forms part of the unorganized agro-processing sector. It plays a significant role in supporting rural livelihoods and local economies. As a leading producer and exporter, the sector sustains farmers while catering to both domestic consumption and growing export demand.

As consumer preferences evolve and global demand rises, it has become necessary to diversify along the sugarcane value chain. This is needed to enhance farm incomes and ensure environmentally and economically sustainable production systems. Value addition through Jaggery production offers substantially higher returns than selling raw sugarcane to mills. Empirical evidence indicates that integrating jaggery production with practices like crop diversification and intercropping can significantly improve net returns per unit area.

Jaggery processing contributes to rural development by fostering entrepreneurship, generating local employment, and strengthening regional economies. Jaggery processing generates year-round employment opportunities and supports migrant labour engagement. The production of high-quality jaggery enables access to premium markets, augmenting farmer incomes. Strengthening jaggery-based cottage industry thus represents a viable pathway for promoting value addition, livelihood enhancement, and inclusive agricultural growth.

India’s Policy Push for Jaggery Ecosystem

The Ministry of Food Processing Industries (MoFPI) promotes infrastructure development and enterprise growth for the food processing sector through several central sector schemes. These include

• Pradhan Mantri Kisan SAMPADA Yojana (PMKSY),

• Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and

• Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme.

These demand-driven initiatives are implemented nationwide. They facilitate the establishment and expansion of processing units by adopting modern technologies. Beneficiary units are required to comply with Food Safety and Standards Authority of India (FSSAI) regulations. They are also encouraged to align with international food safety standards to improve export competitiveness.

PMKSY has a component called Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC). Five jaggery processing units have been approved under this as of December 31, 2025.Total grants-in-aid for this was ₹17.07 crore. The PMFME Scheme has supported 3,528 jaggery based micro food processing units with subsidies totalling ₹102.31 crore. The scheme also provides branding and marketing assistance of up to 50 percent to collectives. These may include Farmer-Producer Organizations (FPOs), Self-Help Groups (SHGs), cooperatives, or special-purpose vehicles of micro-enterprises.

The One District One Product (ODOP) promotes local agro-based industries by enabling economies of scale in input procurement, shared services, and market access. Jaggery and allied products have been identified as ODOP items in 19 districts. This has facilitated value chain development and strengthened support infrastructure.

Quality assurance and standardization are supported through the Directorate of Marketing & Inspection (DMI). Agricultural commodities that meet prescribed standards are certified under the AGMARK system. These standards define quality grades and enable consumers to access reliable products. They also ensure graded raw materials for producers’ remunerative prices for farmers.

Jaggery is a notified commodity covered under AGMARK certification, reinforcing quality assurance, market credibility, and export readiness.

Towards a Resilient and Value-Driven Jaggery Sector

Jaggery production and processing form an important pillar of India’s agro-processing economy. It links agriculture, nutrition, rural livelihoods, and export potential.

As the world’s largest producer, India benefits from a strong sugarcane base. Traditional processing knowledge and rising domestic and global demand for natural sweeteners further strengthen the case. The sector supports millions of livelihoods through decentralized cottage industries, offering opportunities for value addition, rural entrepreneurship, and enhanced farmer incomes.

In addition to its economic role, jaggery’s mineral content and therapeutic properties make it a healthier alternative to refined sugar. It is a useful dietary supplement for addressing micronutrient deficiencies. Government initiatives promoting food processing infrastructure, micro-enterprises, quality certification, GI tagging, and value chain development are strengthening market access and product credibility. With continued policy support, improved processing practices, and diversification into value-added products, the jaggery sector holds strong potential to drive inclusive and sustainable rural growth.