Chennai, Sep 29 (NationPress) The sago industry in Tamil Nadu, which caters to nearly the entire nation's sago rice needs, is currently facing a significant decline in demand from Northern India even though production has reached unprecedented levels.

Modern mechanisation and processing techniques have led to a substantial increase in output; however, sales have not kept up, leaving thousands of tonnes of finished products unsold. In the western regions, particularly in Salem and Namakkal districts—where most sago production units are located—output has surged in recent years.

Daily production has escalated from an earlier range of 8,000 to 10,000 bags to approximately 15,000 bags, with each bag weighing close to 90 kilograms. Yet, demand from key markets such as Delhi, Uttar Pradesh, Madhya Pradesh, Maharashtra, and Gujarat has fallen sharply. The number of manufacturing units has plummeted from around 1,500 three decades ago to merely 350 today, with less than a third operating continuously. Nevertheless, mechanisation has enabled factories to function year-round, unlike earlier cottage-style setups reliant on dry weather for processing and sun-drying sago.

Demand for sago typically peaks from July to September, coinciding with fasting periods and festivals like Navratri that enhance consumption in northern states.

However, shifts in food preferences, a decrease in religious fasting practices, and consumer worries about adulteration have severely impacted sales.

Consequently, approximately five lakh bags of sago produced for this festival season remain unsold. Price decline has further exacerbated the crisis. The wholesale price for a 90-kg bag has plummeted to around Rs 3,200, down from Rs 6,000 a few years ago, reaching the lowest levels in recent memory. Exports have also stagnated, adding to the losses incurred by manufacturers. Interestingly, the parallel starch industry is flourishing.

The starch extracted from tapioca, a byproduct of sago production, has experienced robust growth due to high demand from sectors such as paper, pharmaceuticals, and food processing.

Production has more than doubled in the last decade, with prices remaining stable at approximately Rs 2,400 per bag. Industry stakeholders emphasize the necessity for enhanced marketing support to rejuvenate sago sales. They are advocating for the Tamil Nadu government to recommence distribution through Public Distribution System (PDS) outlets, include sago in the noon meal scheme, and promote its nutritional benefits to stimulate demand both within the state and nationwide. Without such interventions, they caution, one of Tamil Nadu's most iconic agro-industries risks further decline.