Tamil Nadu’s sago industry faces tough times as demand from northern India plummets, even though factories crank out record amounts of the popular rice alternative.
In districts like Salem and Namakkal, where most sago units buzz with activity, modern machines and better processing have boosted daily output to around 15,000 bags—each packed with nearly 90 kilograms. That’s a big jump from the old days of just 8,000 to 10,000 bags. Farmers and manufacturers in this western belt of Tamil Nadu supply almost all of India’s sago needs, turning tapioca roots into the starchy pearls used in desserts, fasting foods, and more.
But sales just aren’t keeping up. Major markets in Delhi, Uttar Pradesh, Madhya Pradesh, Maharashtra, and Gujarat have seen sharp drops. Decades ago, about 1,500 small-scale units dotted the area, but now only 350 remain, and fewer than a third run non-stop. Thanks to mechanization, factories no longer rely on sunny weather for drying—they operate year-round, unlike the old cottage-style setups.
Sago demand usually surges from July to September, fueled by festivals like Navratri and religious fasting in the north. This year, though, producers sit on about 500,000 unsold bags meant for the festive rush. Changing diets, fewer people fasting, and worries over adulteration in sago products have all played a role in the slump.
Prices have tanked too, hitting rock bottom. A 90-kg bag now sells wholesale for roughly Rs 3,200, compared to Rs 6,000 just a few years back. Exports of sago have flatlined, adding to the pain for Tamil Nadu’s sago makers.
On a brighter note, the starch side of the business is booming. As a byproduct of sago production from tapioca, industrial starch has doubled output over the past decade. Demand from paper mills, pharmaceuticals, and food processing keeps prices steady at about Rs 2,400 per bag.
Industry leaders call for help to turn things around. They urge the Tamil Nadu government to bring back sago in Public Distribution System outlets, add it to school noon meal programs, and launch campaigns highlighting its nutritional perks—like being gluten-free and easy to digest. Without stronger marketing and support, they warn, this key part of Tamil Nadu’s agro-economy could slide even further.
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