How India's sugarcane belt could reap 30 percent more yields using AI | Explained

Sunita IyerPublished : Jun 11, 2025 2:42 PM

AI-powered precision farming is set to boost sugarcane yields by 30% and cut water use by half, promising a tech-driven transformation for Indian agriculture.

In a potentially transformative move for Indian agriculture, particularly in sugarcane cultivation, experts and political leaders are now betting big on Artificial Intelligence (AI) to boost yields, cut water use, and improve the economic sustainability of sugar mills and farmers alike. Here’s a detailed look at how AI could reshape the future of sugarcane farming in India.

AI to Cut Water Use by Half, Boost Yield by 30%

Artificial Intelligence (AI) has the potential to revolutionise sugarcane farming by reducing water consumption by 50 per cent and increasing per-acre yield by nearly 30 per cent, a domain expert said on Wednesday. This could be a game-changer for sugarcane-producing states like Maharashtra, where unpredictable rainfall and declining yields have strained both farmers and sugar factories.

“Microsoft has already worked for a long time on the use of AI for sugarcane cultivation and is assuring 30 per cent growth in sugarcane production and curtailing water usage (in its farming) to half,” Jayprakash Dandegaonkar, Director of Maharashtra State Co-Operative Sugar Factories Federation Ltd. was quoted as saying in a PTI report.

“This will help to run the sugar mills for a longer time (more than 110 days) and losses will also be less,” he added.

MoU Signed to Accelerate AI Adoption

A recent high-level meeting in Pune—attended by Maharashtra Deputy Chief Minister Ajit Pawar and former Union Agriculture Minister Sharad Pawar—focused on integrating AI into sugarcane farming. A Memorandum of Understanding (MoU) was signed between the Vasantdada Sugar Institute (VSI) and the Agricultural Development Trust to explore wide-scale implementation of this technology.

“AI can transform the economics of sugarcane. It can help improve farmers' standard of living and generate good revenue. We must therefore implement this technology on a large scale,” Sharad Pawar said.

How the AI System Will Work

The AI-backed system involves setting up automated stations every two kilometres, covering groups of 25 farmers. These stations will send real-time data and alerts to "war rooms" located at Krishi Vigyan Kendras and the Vasantdada Sugar Institute.

“This technology will work on forecasting, soil testing, watering alerts, limiting the use of pesticides and protecting nutrients of the soil,” Dandegaonkar explained. “The war rooms will alert these farmers in a few seconds about steps to be taken during the cultivation,” he added.

The programme will initially be deployed across 40 sugar mills in Maharashtra—23 co-operative and 17 private—that do not have outstanding debts to VSI.

Cost and Funding Structure for Farmers

While the AI infrastructure comes at a cost, a shared funding model has been proposed to make it affordable for farmers.

“Talking about the expenses of setting up AI enabled systems in sugarcane farms, the initial cost is Rs 25,000 per hectare,” Sharad Pawar said. “Of this, Rs 9,000 will be paid by the farmer, Rs 6,750 by the sugar factory, and Rs 9,250 will be contributed by Vasantdada Institute,” he added.

He also urged key drip irrigation manufacturers to reduce pricing, as drip systems are essential to support the AI-enabled precision farming.

Pilot Launch Expected by September

According to Dandegaonkar, the first automated AI station is expected to be operational by August-end or the first week of September. This initial phase will serve as a model for expanding the technology across the state's sugarcane belt.

“Due to less rainfall, the per acre production in the state has come down to 73 tonnes. The use of AI can definitely help us to reach at least 150 tonnes per acre in the near period,” he noted.

"Farmers need to install drips in their fields for this (irrigation). We can expect the first such station (automated AI facility) installed and put into operation by August-end or the first week of September," he added.

A Broader Vision for India's Agricultural Future

While sugarcane is the immediate focus, leaders envision AI playing a pivotal role in rice and horticulture as well. Sharad Pawar highlighted the collaboration with Oxford University and underscored the need for agricultural officers at sugar factories to move beyond logistics and focus on improving crop quality and yields.

“I would like to request all cooperative sugar factories to take steps to improve their agriculture departments. If need be, VSI will impart necessary training,” he said.

As India looks to modernise its agriculture sector, this push for AI in sugarcane farming could set the template for future tech-driven interventions—promising not just better productivity, but a sustainable livelihood for the country's farmers.

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