Analysis of the Sugar Industry

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GROUP 7:

(103) Samia Ansari(104) Debarshi Bhattacharya(116) Sneha Mimani(135) Ravish(137) Aarthi R(147) Anant Singhania


GLOBAL STATISTICS FOR SUGAR Sugar Production in 2007 – 2008: 170.34 Million Tons

World Consumption – 169 Million Tons

The ISO Prediction – India to become largest producer of sugar in 2008 – 2009

Fall in Sugar Prices in 2007 – 2008 Ample Sugar Stocks Reaction to Previous year’s prices


MAJOR SUGAR PRODUCERS


MAJOR SUGAR PRODUCERS BRAZIL

Largest Producer of Sugar in the world Expected Production in 2008 – 09: 30.8 Million Tons

CHINA 3rd Largest Sugar Producing nation Expected Production: 13 Million Tons Largely due to better weather conditions and prices

THAILAND 4th Largest Producer of Sugar Expected Production: 7.78 Million Tons Increase in Sugarcane support prices


MAJOR SUGAR PRODUCERS (2) PAKISTAN

Production: 4.73 Million Tons Mainly Domestic Consumption

MEXICO 5th Largest Producer of Sugar Production of 5.01 Million Tons up to May 2008 – Increase of 6.3%

over the previous year


SUGAR PRODUCING STATES IN INDIA


FACTS ABOUT SUGAR PRODUCTION IN INDIA India is the Largest Consumer and the 2nd Largest

Producer of Sugar in the world

The Sugar Industry is the 2nd Largest Agro-based Industry located in rural India

Size of the Sugar Industry Rs 21,000 Crores in Terms of Sales in 2007 -2008 Rs 50,000 Crores in Terms of Total Turnover


FACTS ABOUT SUGAR PRODUCTION IN INDIA (2) Generates employment for 500,000 people both directly

and Indirectly

Major Players - Balrampur Chini Mills , Bajaj Hindustan, Andhra sugars, Thiru Arooran Sugars, Dhampur Sugar, Shree Renuka Sugars, Godavari Sugar Mills

453 Sugar Mills in the Country currently operational


CYCLE OF SUGAR INDUSTRY IN INDIA

Supply & Demand Developments in India


TRENDS IN INDIA OVER 3 YEARS


STATE-WISE PRODUCTION OF SUGAR


STATE-WISE PRODUCTION OF SUGAR Largest Sugarcane Growing States in the country – Uttar

Pradesh, Maharashtra, Karnantaka, Gujarat, Tamil Nadu and Andhra Pradesh

These 6 states contribute 85% of the total sugar production in India

UP and Maharashtra together contribute slightly more than 57%


EARLY GOVERNMENT POLICIES ON SUGAR ESSENTIAL COMMODITIES ACT, 1955

SUGAR (CONTROL) ORDER, 1966

SUGARCANE (CONTROL) ORDER, 1966

LEVY SUGAR SUPPLY(CONTROL) ORDER, 1979

SUGAR DEVELOPMENT FUND ACT, 1982


GOVERNMENT POLICIES ON SUGAR POST-LIBERALISATION Sugar sector de-licensed with effect from 11TH September,

1998

Phased decontrol of the sugar industry

Introduction of Futures/Forward trading in sugar

Restructuring of Public Distribution System (PDS) for sugar

Liberalisation of sugar trade


GOVERNMENT POLICIES ON SUGAR POST-LIBERALISATION (2) Removal of Quantitative ceiling on export of sugar

Promotion of export of sugar

Revival of sick sugar mills

Promoting utilization of by-products


EXPORT DATA ON THE INDIAN SUGAR INDUSTRY Net Exports in 2007 – 2008: $1.342 Billion

Total Amount Exported: 2.5 Million Tons

95% Growth in Exports High Global Prices driving higher exports

Largest Exporters: UAE, Bangladesh, Yemen and Sri Lanka


FINANCIAL DATA ON THE INDIAN SUGAR INDUSTRY The trend this year shows that the amount of sugar

produced may fall for 2008-09 season

Analysis of sugar industry financials show that profits have been increasing steadily by about 13% p.a. for the past 7 Fiscal years

Production of sugar is about 26.5 Million tonnes in the year July 2007 to June 2008

7% decrease in production over the 2006-2007


BYPRODUCTS OF SUGAR

MOLASSES Used in the Production of Ethanol Also in the production of other Alcohol-based chemicals:

Acetaldehyde, Monoethylene Glycol, etc

BAGASSE Can be used for generating power: Generation of up to 4000MW

possible Used to produce Insulation Board, Paper, Tiles, etc


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Analysis of the Sugar Industry