The Importance of Sugarcane

II. LITERATURE REVIEW

2.1 The Importance of Sugarcane

World sugar production is less than with the amount of consumption. According to Illovo 2012, global sugar production in 201112 was forecasted at 179 million tons, representing 7 increase compared to that year of previous year. In other side, global sugar consumption growth during 201112 is increased by 1.5 due to greater sugar availability and lower prices than that of the previous year. Sugar production mostly rely on sugarcane farming sector. Sugarcane is cultivated around the world, both subtropics and tropics. Southest Asia and Southern America is the best region in the term of sugarcane production. The most highest rank of sugarcane production around Southest Asia and the second sugarcane exporter around the world after Brazil is Thailand. High sugarcane demand around Asia, particularly from Indonesia and Cambodia, stymulate Thailand to exports around 8.7 million tons November 201314, estimated by USDA 2013. The pattern of Thailand’s sugarcane exports during the last five years shows the improvement. USDA 2013 recorded that Thailand sugarcane production is estimated up 900,000 tons, to a record 10.9 million tons based on a rise in area and yield. The consumption pattern is also going up, because of improving number of household and industry. Indonesian sugar production is not comparable with the amount of consumption. Based on data from the Association of Indonesian Sugar IKAGI, consumption of sugar production in January - October 2011 amounted around 2.11 million tonnes. In other hand, domestic consumption of sugar around 2,7 - 2,8 million tonsyear Julian, 2011. The less sugar production caused by the decreasing of sugarcane planting area. According to the Indonesian Sugar Council DGI since the 2008-2010 decline in sugar cane planting area of 436 504 ha 2008 to 422 935 ha 2009, and in 2010 to 418 259 ha Julian, 2011. 4

2.2 Sugarcane Cultivar