Economics PPT on Onion,Sugar,Pulses.
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Transcript of Economics PPT on Onion,Sugar,Pulses.
SHREYA SHUBHAM DHOLE SIVA SHANKAR BISWAL SOUMYASHREE RM SUBHAYAN DUTTA
ROHIT CHOTANI ROHIT KUMAR SHARMA SRAVANI JAMMALAMUDI
SHUBHAM ROY YAMINI THOTA
Managerial economicsPRESENTED BY:-
CONTENTSOnionomics Sugarnomics
Pulses
ONIONOMICS
CURRENT SCENARIO
India is the second largest producer of onion and enjoys 19% share of the global onion production.
Maharashtra and Karnataka are the chief onion producing states in India and contribute near about 45% of the total production of onion in India.
Production of onion in India is about 15m tones a year.
INFLATION
POOR INFRASTR-UCTURE
SEASONAL TREND
HOARDING
MISMANAGEMENT
Demand And Supply Of Onions
SUPPLY PRICE
The Onion Supply Chain
May June July August0
500
1000
1500
2000
2500
3000
3500
4000
1150
1575
2346
3585
Average Price of Onions in Lasalgaon
Average Price
Understanding The
Presence Of Different Elasticity
INCOME
TASTE
PRICES OF SUBSTITUTES
TECHNOLOGY
• China producing 27% of world onion.• India being second largest producer of onion.
Cost and Production Of Onion
27%
1%20%
2%
1%2%
2%2%3%
40%
Production (000 MT))China
Indonesia
India
Pakistan
Bangladesh
Vietnam
Russian
Myanmar
Brazil
Turkey
Others Countries
Importance Of Forecasting
• Weather plays important role for agricultural production.
• It causes:-1-Physical Damage to crops2-Soil Erosion
1-Sky Coverage 2-Bright Sunshine 3-Percipitation 4-Solar Radiation
Forecast Includes Following Weather Variables
• 1-Rural Primary Market• 2-Secondary/Assembly Market• 3-Wholesale Market• 4-Terminal Market• 5-Retail Market
Agricultural Marketing Infrastructure
1.Maharashtra Government proposes subsidy for onion farmers.
With a sharp fall in onion prices due to increase in supply and unsold stock, the Maharashtra government proposes to give a subsidy of Rs100 a quintal to growers.
The state government will have to bear an additional burden of Rs.40crore on account of the subsidy, to growers from Nashik, Pune, Ahmednagar, Dhule and other parts.
2. Slump in exports, glut to push onion prices further down.
India exports less than 10 per cent of its total onion production of 18.9 million tonnes, yet the domestic price fluctuations are largely dependent on export activities.
Data available with Agricultural and Processed Food Products Export Development Authority (APEDA) revealed that exports of the bulb has been consistently going down from 1.5 million tonnes in 2013-14 with a per unit value of ₹21,380 to around 0.8 million
tonnes during 2015-16 so far till January with per unit value of ₹25,746.
Government Policy
1. India raises minimum export price for onions. To maintain price levels at home.
67% increase in minimum export price i.e. $300 per tonne to $5oo per tonne.
2. Agricultural Price Policy of Onion in Satara District of Maharashtra.
VARIOUS PRICING POLICIES
YEAR MEAN STANDARD VARIATION
COEFFICIENT OF VARIATION %
2005 442.91 284.75 64.29
2006 267.58 58.41 21.83
2007 793.16 235.80 29.73
2008 480.50 239.65 49.88
2009 898.58 295.99 32.94
2010 1216.08 787.20 64.73
Source: APMC, Lonand Onion Market
Fluctuation In Onion Prices
Date – 7th September 20161. Onion prices slump to 4-yr low.
This decline in price is at Lasalgaon in Nashik, reportedly largest in Asia.
Onions below average quality, with high moisture content at Rs 2/kg and the best quality at Rs.6.70/kg.
Demand is less from Madhya Pradesh, Bihar, Uttar Pradesh due to bumper crop in those regions.
Major reason for fall in prices is due to output forecast.
NEWS ARTICLES
Date – 6th September 2016 2. Record onion output in 2015-16.
Onion output rose 11 per cent in the crop year ending in June, touching 21 million tonnes (mt), a new record.
Onion output had dropped to 18.92 mt in the 2014-15 crop year (July-June), due to poor rain. The previous record was 19.4 mt, in 2013-14.
Onion output had dropped to 18.92 mt in the 2014-15 crop year (July-June), due to poor rain. The previous record was 19.4 mt, in 2013-14.
Date – 25th Aug 2016
3. Nashik farmer gets 5 paisa per kg for onions.
Sources : www.economictimes.comwww.businessstandard.com
Sugaronomics Bitter-Sweetener
Industry Overview With an annual production capacity of over 30 million metric tons (MMT),
the Indian Sugar Industry (ISI) is the second largest producer of sugar in the world.
ISI remains highly regulated and is a source of livelihood for 50 million farmers and their families; and provides direct employment to over 5 lakhs skilled and semi-skilled labour in sugar mills and allied industries across the country.
The annual turnover of the industry is estimated at Rs. 41,000 crore and it pays about Rs.2,500 crore per annum to the government in the form of taxes.
India’s sugarcane production and area under cultivation registered a compounded annual growth rate (CAGR) of 3.70% and 2.03%, respectively, during last 10-years ending SS 13-14. (Sugar Season; refers to the period from October 01 to September 30).
Size of The Industry
• The ISI accounted for more than 15% of the total world sugar production in last 5 years ending SS14-15
• As on January 31, 2015, India had 703 sugar mills (including two standalone refineries) with major concentration in rural areas.
• About 50% of the sugar mills are promoted by sugarcane farmers in the form of co-operative societies
State Wise Production
Uttar Pradesh26%
Maha-ras-tra
34%
Karnataka15%
Tamil Nadu7%
Andhra
Pradesh4%
Gujrat4% Haryana
2%
Bihar2%
Punjab2%
Others4%
Production
Sugar Production And Consumption
2010-11 2011-12 2012-13 2013-14 2014-150
5
10
15
20
25
30
2426 26 25 25
2022
25 24 25
Domestic Sugar Production & Consumption
Domestic Sugar Production Domestic Sugar ConsumptionYears
Qua
ntity
(in
MM
T)
2010-11 2011-12 2012-13 2013-14 2014-15145
150
155
160
165
170
175
180
162
172
178175
172
156
160
165167
171
Global Sugar Production & Consumption
Global Sugar Production Global Sugar Consumption
Years
Qua
ntity
(in
MM
T)
Price Trend Of Sugarcane (FRP) And Sugar In India
Financial Performance
Key Players In Sugar Industries
• EID Parry India Ltd
• Bajaj Hindustan Ltd
• Balrampur Chini Mills Ltd
• Shree Renuka Sugars Ltd
• Bannariamman Sugars Ltd
• Triveni Engineering and Industries Ltd
• Dalmia Bharat Sugar and Industries Ltd
• Dhampur Sugar Mills Ltd
• Andhra Sugars Ltd
• Sakthi Sugars Ltd
Sweet Responsibilities
International• ILO Tripartite Declaration of Principles Concerning
Multinational Enterprises and Social Policy
• OECD Guidelines for Multinational Enterprises
• UN Global Compact
• The Universal Declaration of Human Rights
• UN Convention against Corruption (2003)
• ISO 26000:2010
India
• Care for all Stakeholders
• Ethical Functioning
• Respect for Workers’ Rights and Welfare
• Respect for Human Rights
• Respect for Environment
• Activities for Social and Inclusive Development
National Foundation for CSR (NFCSR)
Corporate Social Responsibility Voluntary Guidelines 2009
• Ministry of Corporate Affairs (MCA)
• Indian Institute of Corporate Affairs (IICA)
• Confederation of Indian Industry (CII)
• Federation of Indian Chambers of Commerce and Industry (FICCI)
• The Associated Chamber of Commerce and Industry of India (ASSOCHAM)
Government Policies Of Sugarcane
• Sugarcane pricing• Supply and Demand• Factors affecting Demand and Supply• Challenges for Sugar industry• Steps to overcome• Cost analysis
SECTOR-WISE BREAK-UP SUGAR MILLS
Total Factories in India - 684
*Includes closed sugar mills and refineries also
STATUTORY MINIMUM PRICE
Sugar Season SMP (Per quintal) Basic Recovery Level
2005-2006 79.5 9.00%
2006-2007 80.25 9.00%
2007-2008 81.18 9.00%
2008-2009 81.18 9.00%
2009-2010 (FRP) 129.84 9.50%
2010-2011 (FRP) 139.12 9.50%
2011-2012 (FRP) 145 9.50%
2012-2013(FRP) 170 9.50%
2013-2014(FRP) 210 9.50%
DEMAND AND SUPPLY
Factors affecting Demand• Population• Income• Urbanisation• Social advacements• Shift from Khandsari
Factors affecting Supply• Sugarcane production• Proportion of Sugarcane to cultivate crop• Imports and exports• Rainfall• Govt’ Policies
COST AND PRODUCTION ANALYSIS
NWFP- Rs.44,126 per Acre
Punjab- Rs.39,753 per Acre
Sindh- Rs.30,819 per Acre
• Total variable costs are calculated from the summation of total labour and factor costs.
• crops There are three main crops competing with sugarcane-- cotton, wheat and rice.
• The variable costs and fixed costs of sugarcane and its competing crops has been examined and found that rice growers had the lowest variable cost and wheat had the second lowest variable costs.
• Cost comparisons, particularly total cost comparisons, can be misleading.
• Sugarcane Per hectare costs, gross returns and net returns
• Average Crushing Capacity is very low at just 2000 TCD.
• Typically, 100 tonnes of cane crushed gives only 10 tonnes of sugar & the rest is by-products: Molasses (4.5 Tonnes), Baggase (33 Tonnes) & Press Mud (2.5 Tonnes).
• Profitability of sugarcane and its competing crops there are three main crops competing with sugarcane-cotton, wheat and rice.
PULSES INDUSTRY IN INDIA
PULSES PRODUCED IN INDIA
• LENTILS• THUR DAL• BENGAL GRAM• BLACK GRAM• REDGRAM• PEAS
OBJECTIVES• Participants highlighted how pulses offer exceptional nutritional
inputs to human diets, are economically affordable, use relatively little water compared to other protein sources, and also reduce the need for industrial fertilizers
• Pulses typically offer farmers higher profit margins than cereal grains and can thus play a key role not only in boosting human and ecological health but also in helping reduce rural poverty
• The international year of pulses offers a platform to highlight issues that can make great contributions to the sustainable development goals, including those of eradicating hunger, promoting health and assuring access to clean water
PRICING POLICIES OF PULSES
PULSES 2012-13 2013-14 2014-15 2015-16 2016-17
TUR 3850 4300 4350 4425 4625
GRAM 3000 3100 3175 3425 ---
MOONG 4400 4500 4600 4650 4800
URAD 4300 4300 4350 4425 4575
LENTIL 2900 2950 3075 3325 ---
MINIMUM SUPPORT PRICE
The government is expected to frame a long term policy, which will look into various aspects, including the msp, and bonus paid to farmers. The committee will consider the issue of subsidizing farmers those who wish to grow pulses.
GOVERNMENT POLICIES• In the year 2013-14 under the National Food security mission only 482
districts of 16 states were included
• Total 17 hundred crores is being allocated under National food security mission
• For pulses, total allocation is Rs. 1630 crores. Central govt has allocated Rs. 1100 crores and 430 crores have been allocated by state government
• In the year 2016-17, demonstration of new techniques for pulse production is being carried out in 31,000 hectares by 534 KVKs through ICAR & State Agriculture Universities and Rs.25.29 crores have been allocated for this purpose.
• Central Government has made a committee under the supervision of chief economic advisor to make long term plan to review MSP and bonus
1
• Corporation from BRICS
2
• Import pulses on long-term basis
3
• Inventing more productive pulses and seeds oils
4
• Testing and Captive farming in brazil
ARTICLES RELATED TO PULSES
• Lower prices of pulses yet to reach consumer as retail rates still high
Unless India takes a 360 degree view on pulses, even a combination of one good year of monsoons in 2016 and government-to-government pacts with African countries are unlikely to solve the pulses' conundrum for the long term.