Sugar Export IIPM

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    Export of Sugar From India

    Presented byArun Prasath V

    Harsha

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    INDIAN & GLOBAL SCENARIOINDIA IS THE THIRD LARGEST COUNTRY IN TERMS OF SUGARCANEPRODUCTION

    30% OF THE TOTAL SUGAR PRODUCED GOES FOR GUR AND KHANDARI , 45%GOES FOR SUGAR PRODUCTION AND THE 25% FOR ALCOHOL PRODUCTION(ETHANOL)

    6 STATES CONTRIBUTE MORE THAN 85% OF TOTAL SUGAR PRODUCED ININDIAINDIA PRODUCES 26 metric tones ON AN AVERAGE BUT THE PRODUCTION

    FOR THE FY09 IT IS EXPECTED TO GO BELOW BY 20%

    GOLBAL CONTRIBUTION IS 3% BY INDIA, BRAZIL ALONE DOES 36% AND OTHERCOUNTRIES GIVE A TOTAL OF 45% AND THE REST IS DONE BY CHINA, CUBA ,INDONEASIA, THILAND, U.K AND USA

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    Contd,..

    WORLD COUNSUMPTION OF SUGAR 150.3 MMT FOR 2007-2008,PROJECTED TO BECOME 160.7 BY 2010THERE ARE 453 SUGAR MILLS IN THE COUNTRY252 ARE IN THE CO-OPERATIVE SECTOR134 ARE IN THE PIVATE SECTOR67 IN THE PUBLIC SECTOR136 UNITS ARE IN THE IMPLEMANTATION STAGESU.P PRODUCES 24% ALONE AND MAHARSHATRA CONTRIBUTES 20%

    STATES AS TAMIL NADU, KARNATAKA, GUJRAT, PUNJABAND ALL THESE STATES CONTRIBUTE A TOTAL OF 85%

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    Top Ten Sugar Producers

    Brazil 30 million tons (20% of global sugar production)European Union 22 million (14.7%)India 20 million (13.3%)China 10 million (6.6%)United States 7 million (4.6%)Mexico 6 million (4%)South African Development Community (SADC) 5.7million (3.8%)

    Australia 5.4 million (3.6%)Thailand 5 million (3.3%)Russia 2.7 million (1.8%)

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    SUGAR CONTRIBUTION

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    SUGAR EXPORT

    INDIA HAS AN AVERAGE EXPORTEABLE SURPLUS OF 6.23 milliontones EVERY YEARTHE PAST FIVE YEARS IT EXPORTED 4.07 million tones

    SINCE DOMESTIC PRICES ARE HIGHER THAN INTERNATIONAL THERATE OF EXPORT IS EXPECTED TO COME DOWN

    THE MAJOR IMPORTING COUNTRIES OF INDIA ARE BANGLADESH,PAKISTAN, U.K, JAPAN,S.KOREA

    AND THE NEW ONES ARE KHAZAKISTAN & IRAN

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    Not all sugar-producing countries sell their processed sugar oninternational trade markets. Currently, 70% the world s sugar is consumedin the country where harvested. Only 30% is traded outside country of origin.

    Global sugar consumption rises by about 2% per year, and has increased17% from 128 million tons in year 2000 to 150 million in 2006. The highestsugar consumption per capita is found in Brazil (59 kilograms of sugar peryear), Mexico (53) and Australia (50).

    Top producers that also export the highest percentage of their sugar

    production are Australia (76%), Brazil (59%), Thailand (52%) and theEuropean Union (37%). In contrast, India and Mexico each export just over 5% while China, U.S. and Russia do not sell processedsugar to foreign markets.

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    Top Ten Sugar Exporters

    Below are the leading sugar exporters for 2005-6.

    * Brazil 17.7 million tons (39% of global sugar exports)

    * European Union 8.1 million (18%)* Australia 4.1 million (9%)* Thailand 2.6 million (5.8%)* SADC 1.6 million (3.6%)* Guatemala 1.5 million (3.3%)

    * India 1.4 million (3.1)* Persian Gulf 1.3 million (2.9%)* South Africa 1.3 million (2.9%)* Cuba 1.2 million (2.7%)

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    Sugar Acts & OrdersGovernment of IndiaMinistry of Public Distribution and Consumer AffairsDepartment of Sugar and Edible OilsDirectorate of Sugar

    * Essential Commodities Act, 1955* Sugar (Control) Order, 1966* Sugarcane (Control) Order, 1966* Levy Sugar Supply (Control) Order, 1979* Sugar (Packing and Marking) Order, 1970

    * Sugar Cess Act 1982* Sugar Development Fund Act 1982* Sugar Development Fund Rules 1983* LSPEF Act, 1976

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    EXPORT OF SUGAR

    The Directorate General of Foreign Trade (DGFT) has issued a Public NoticeNo.8 (RE-2001)/1997-2002, dated the 20th April, 2001 regarding export of sugar. Accordingly, Agriculture & Processed Food Products ExportDevelopment Authority (APEDA) has been asked to issue Registration-

    cum-allocation Certificates (RCACs) to the sugar mills/exporters of sugaron production of firm and valid contract orders.

    Export of sugar from India is subject to a quantitative ceiling announcedannually for each financial year. The quantitative ceiling is finalised in

    consultation with the Department of Consumer Affairs. Pendingfinalisation of the quantitative ceiling for sugar exports this year, it hasbeen decided that RCACs may be issued to sugar mills and exporters of sugar by APEDA on the production of firm and valid contract orders untilthe quantitative ceiling for this year is notified.

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    Conclusion

    INDIA IS LACKING DUE TO ITS POLICY,METHODS,AND LACK OFKNOWLEDGE FOR THIS ONLY GOVERNMENT CAN MAKE A BIGCHANGE

    INDIA INCLUDES SUGAR AS AN ESSENTIAL COMMODITY AN IT HASBECOME MORE LIBERAL IN THIS SECTOR

    INDIA HAS THE POTENTIAL TO BECOME THE WORLDS BIGGESTEXPORTER BY REMOVING THE MISSING LEADS.