Sugar is produced by pressing out the juice from sugarcane & then boiling it into crystals. This process was developed in India around 500 BC. The sugarcane cultivation is believed to have originated in New Guinea, and was spread along routes to Southeast Asia and India. Brazil and India are the largest producer and producer-consumer of sugar respectively. India is the second largest producer of sugarcane next to Brazil. In 2008, the production in Brazil was 645,300,182 tonnes & India was 348,187,900 tonnes. India contributes about 12% of world sugar production and has annual sugar production capacity of 23 million tonnes with a total investment of $11000 million. Presently, about 4 million hectares of land is under sugarcane production. The average yield is around 70 tonnes per hectare. India now has 453 working sugar factories with an average capacity of 3500 TCD (tonnes crushed per day). There has been an increase in the volume of free international trade in sugar, which provides an excellent means of increasing exports. In India over 45 million tonnes of sugar is being traded each year. Sugar production is not the only business of the Indian industry, but it also has a diversified business of power generation and ethanol production. The country has been producing about 1.7 billion liters of alcohol utilizing 75-80% molasses, which is a by-product of sugar production in the country. In 1993, Molasses and alcohol-based industries were decontrolled, but currently are being controlled by state governments.