Medium Term Outlook for Indian Agriculture: Sugar Sector
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Transcript of Medium Term Outlook for Indian Agriculture: Sugar Sector
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Medium Term Outlook for Indian Agriculture:Sugar SectorRoshan TamakBusiness Head (Sugar),Olam Agro India Ltd
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Global Sugar IndustryBrazil and India are the highest sugar producing nations in the world
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Global per capita consumption of sugar
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Indian Sugar Industry a snapshot
ParticularsUOMCrushing Season2010-112011-12Sugar Factories in OperationNos527529Crushing Capacity Million TCD24,224,8Sugarcane Crushed mmt239,8256,9Sugar Produced Mmt24,426,3Sugar Recovery %10,210,2Yield of Sugarcane MT/Hect70,170,3
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Sugarcane Area Contribution of Major States
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India: Area under Sugarcane cultivationThere is no significant expansion in the acreage of sugarcane *above numbers are in 000 Hectares
StatesSeason2002-032003-042004-052005-062006-072007-082008-092009-102010-112011-12AverageIndia45203938366242015151504344084202494450864516Andhra Pradesh233209210230264247200158192204215Gujarat203176197197214208197192188202197Karnataka383243178219326296210326421430303Maharastra573443324501104910887707369641022747Tamil Nadu261192232336391352323314336382312Uttar Pradesh21492030195521562247217920581977212521622104
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India- Sugar recovery %Sugar recovery is more or less stagnant over the decade
StatesSeason2002-032003-042004-052005-062006-072007-082008-092009-102010-112011-12AverageIndia10,3610,2210,1710,2110,1610,5510,0310,2010,1710,2510,23Andhra Pradesh10,1010,3110,6510,059,7010,129,899,289,759,799,96Gujarat10,5810,9310,7610,8210,6410,6710,7210,539,9910,6110,63Karnataka10,7910,1910,1110,8210,5710,8710,2810,7010,9111,1410,64Maharastra11,6410,9211,3911,6811,3911,9211,4411,5111,2911,6511,48Tamil Nadu9,889,929,649,249,259,329,628,939,089,319,42Uttar Pradesh9,539,829,799,519,479,798,949,139,149,079,42
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India Sugarcane yield /hec Sugarcane productivity is almost stagnant over the years.(In Tons per hectares)
StatesSeason2000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-12AverageIndia69676459656769686766697066Andhra Pradesh82836672757782827874778277Gujarat71716972747473817370767073Karnataka103818566808388838390949085Maharastra83787458637875817985858076Tamil Nadu1051029392101104105108106101108103102Uttar Pradesh55585656615860575259576057
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Limitations in increasing productivity
Cyclicality in sugar Industry Unpredictable climateDepleting water resources Crop competition and food security challenge Land fragmentation and small land holdingsDepleting soil health/monoculture Increasing cost of cultivation-inputs/labor etc Improper sugarcane varietal mix and low sugar yieldLack of focus on Cane research and development
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Sugar Production and Sugar Consumption
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India- State wise per capita consumptionStates with relatively lesser demand will soon catch up with the high sugar consumptionWide gap from 10-28 Kg/Person
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India- Projected domestic sugar consumption
Increasing demand expected to reach 30 million tons by 2020
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Shared VisionPolicy MakersFarmers & MillersConsumersFulfill customers needsSelf sufficiency to meet domestic demand
Social welfare of stakeholders
Contribution to Indias energy requirementEconomic profit driven growth
Risk and cost minimization
Collaboration between each otherTowards a more efficient sugar industry
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Potential & Opportunities
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Implementation of sugar & cane price linkage formula ( Dr Rangarajan Committee) Integration of Indian commodity exchanges with the world marketStable trade policy-import/export (Timely decisions)Mandatory support for Cogen Power (tariff support/REC benefit)Implementation of Ethanol Blending policy (10% -recently announced) Proper coordination for research and development (IISR,SBI,VSI,UPSCR)Integration of all Govt schemes like SDF,NFSM,RKVY for the purpose of sugarcane development and infrastructure improvement Water harvesting/drip irrigation to be taken up as a major initiative Development of Micro entrepreneurs/custom hiring model Training modules for growers/staff to be developed and implemented
Action Agenda
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Thank you!