Recent Trends and Outlook in the International

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    3/17/12

    Recent trends and outlook in

    the international sugarIndustry-c.muthiya

    Present by:R.Arun Prasath,

    M.B.A first year105921501005.

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    Introduction

    l Sugars are major form of carbohydrates and are probablyfound in all plants.

    l World sugar production is highly dependent on weatherand the global demand-supply balance.

    l The free market for sugar is only 20-25% of worldproduction.

    l Half of the worlds traded sugar is exported by 4 countries:Brazil, Thailand, Australia, Cuba.

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    Indian government on sugarindustry

    l Govt declared new policy on aug 20,1998 with regards tolicenses for new factories.

    l Indian institute of sugar technology was set up.

    l In 1982, sugar development fund was set up.

    l India original home for sugar and sugar cane.

    l Presently about four million hectares.

    l India the largest single producer of sugar and in whitecrystal sugar, India no.1.

    l With the advent of modern sugar processing industry inIndia, no. of sugar mills increased from 30 in the year1930-31 to 135 in 1935-36.

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    Sugar production in states

    State 2002-2003 2004-2005 2006-07(est)

    up 58.74 46.08 50.32Maharastra 61.64 31.99 22.29

    Karnataka 17.98 11.57 13

    Tamil nadu 17.04 11.9 9.84

    A.P 11.88 8.81 9.75

    Gujarat 12.38 10.77 8.32

    Haryana 5.99 5.86 4.03

    Uttaranjal 4.59 3.93 3.82

    Punjab 5.12 3.88 3.37

    Bihar 4.21 2.77 2.77

    M.P 0.85 0.94 0.85

    Other 0.91 1.09 1.58

    Table : level of sugar production( in lakh tonnes)

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    Indian sugar industry

    l Production

    In 2008/09, india produced 23.64 mt of sugar. Up and Maharashtra- 67% of total production.

    year Sugar productio (oct-aug)mt

    2004-05 12.27

    2005-06 18.182006-07 25.36

    2007-08 24.12

    2008-09 23.64

    Source: Indian mills association

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    Current industry status

    l In 2005/06 581 sugar mills in the country with productioncapacity of 190 lakh MTs of sugar.

    l

    These mills are located in 18 states of the country.

    l 312-co-op sector

    l 205-pvt sector

    l 64-public sector

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    outlook

    l Robust growth

    l Price gets stabilized

    l Get back from difficult phase

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    Key factors for the domesticsugar industry

    l Cane development activities

    l Operating efficiencies

    l Level of integration

    l Capital structure

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    Conclusion and suggestion

    l The realizations and profitability of sugar mills has seenan upward surge in the recent past.

    l With the supply demand scenario reversing and canecost rising, pressures on conversion margins from 2007-08 onwards cannot be ruled out.

    l The continuation of firm trends in international sugarprices would also support domestic manufacturers in themedium term.

    l India is lacking due to its policy,methods,and lack of

    knowledge for this only government can make a bigchange .

    l India has the potential to become the worlds biggestexporter by removing the missing leads.