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Course Code: 515
Course Instructor: Mrs. Vani Mittal Date of Allotment: 18-02-2010 Date of submission: 05-05-10
Student’s Roll No. RR1907A21 Section No. : 1907 Declaration: I declare that this assignment is my individual work. I have not copied from any other student’s work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person. Student’s Signature: Rahul Sharma Evaluator’s comments: Marks obtained: Out of
TABLE OF CONTENT
INTRODUCTION SUGAR PRICE DEMAND FACTOR – GLOBAL DEMAND FACTOR – INDIA RELATIVELY INELASTIC DEMAND CURVE GLOBAL PRODUCTION, SUPPLY SUGAR PRODUCTION AND SUPPLY IN INDIA FACTORS AFFECTING PRODUCTION THE BREAK-EVEN POINT SUGARCANE UTILIZATION SUGAR CONSUMPTION IN INDIA SUGAR EXPORT SUGAR PRODUCTION SUGAR MARKETS IN DISARRAY SUGAR IN THE NEXT CENTURY
This gives the sugar industry in Indial an additional flexibility to adjust its sugar production keeping in view the sugar price in the international market as nearly 40% of the sugar output is exported.0 MMT and consumption to reach 147. out of the total cane available for crushing.4 MMT in 2002-2003 and then declined to 143.India is the largest producer of sugar in the world. the Central Government decided. since October 2003. under which.7 MMT in 2010 and 176.0 MMT in 2004-2005. The world consumption is projected to grow to 160. As per Tuteja Committee. by way of a release mechanism. SUGAR PRICE: The Government has been following a dual pricing policy for sugar. while the price for the free market sugar is market determined.8 MMT in 2003-2004. According to ISO. Free sale sugar is also regulated to some extent. the world sugar output is forecasted to reach 145. a fixed percentage of the total production is to be necessarily sold by the sugar mills to the Government or its nominees at a pre-determined price referred to as "levy sugar". whereby the Government determines the quantum of sugar that can be sold every month. In India. Australia.88 MMT in 1995-1996 to 149. Global sugar production increased from approximately 125. 45% goes for sugar production and 55% for the production of ethanol directly from sugarcane juice. France and Germany. Thailand. in February 2002. whereas consumption increased steadily from 118. Thus. Mexico. reducing the stock/ consumption ratio to less than 42%. Further. nearly 5 MMT of surplus sugar are expected to have been removed from the world sugar balance. by regulating the supply of sugar based on the underlying demand. resulting in a deficit of around 2 MMT in 2004-2005. Pakistan. The sugar so collected is distributed to consumers through Fair Price Shops under the public distribution system. The balance sugar referred to as "free sale sugar" can be sold in the open market.1 MMT by 2015.7 MMT in 2003-2004. to dispense with the .1 MMT in 1995-1996 to 142. the Government statutorily determines the price of levy sugar. USA. India and Brazil are almost equally placed. affected to some extent by the release mechanism. This helps the Government maintain stability in sugar prices. In terms of sugarcane production. Sugar industry – Global: India are the largest sugar producing countries followed by China.
2005 The levy imposed has reduced from 40% in the 1990s to 10% effective from March 2002. while the gap between levy sugar prices and free sale sugar prices had narrowed considerably until 2002-2003. the levy sugar quota would automatically be converted into free sale sugar. LEVY OBLIGATION OVER THE YEARS Year 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 Levy Sugar: Free sale sugar ratio 40:60 40:60 40:60 40:60 30:70 (wef. March 2002) 10:90 10:90 As can be seen from the table. The Tuteja Committee has also recommended that the Central Government may dispense with the release mechanism for free sale sugar with effect from October 1. However. 2005. a maximum of 3 months may be permitted for lifting of levy sugar by the Government. where after. 2003. February 2001) 10:90 (wef. it was decided to continue with the release mechanism up to September 2005 and to review the position in February. The Tuteja Committee has also recommended continuing with the 10% levy obligation level. it has since widened due to high free sale sugar prices.release mechanism with effect from April 1. without any recurring levy obligation on this portion of levy sugar. Historical Free sale sugar and Levy Sugar Prices (Rs. January 2000) 15:85 (wef. / metric tonne) . in March 2003. The Committee has also recommended that beyond the initial time limit.
1 MMT by 2015.0 MMT and consumption to reach 147. as a direct result of increasing population. USA. increasing per capita income and increased availability. According to ISO. Mexico. Pakistan. the consumption of sugar in Asian countries has increased at a faster rate. . China. resulting in a deficit of around 2 MMT in 2004-2005. the world sugar output is forecasted to reach 145.0 MMT in 2004-2005. Russia. since October 2003. the world sugar output is forecasted to reach 145. Further.0 MMT and consumption to reach 147. The world consumption is projected to grow to 160.7 MMT (Million Metric Tons) in 2010 and 176. resulting in a deficit of around 2 MMT in 2004-2005. Brazil. nearly 5 MMT of surplus sugar are expected to have been removed from the world sugar balance. According to USDA Foreign Agriculture Service.0 MMT in 2004-2005. The world's largest consumers of sugar are India. reducing the stock/ consumption ratio to less than 42%. nearly 5 MMT of surplus sugar are expected to have been removed from the world sugar balance. reducing the stock/ consumption ratio to less than 42%. since October 2003.DEMAND FACTORS – GLOBAL: According to ISO. Germany and Egypt. Further. Indonesia.
500 TCD. Futures trading will allow sugar companies to hedge and manage their risk better. certain sugar Companies floated Public Limited Companies to cater to this new segment. The Government permitted futures trading in sugar and granted approval to three Companies for setting up Futures Exchange. the Government permitted only small sized units of 1. This will bring discipline in the sugar release mechanism by making it legally enforceable.000 TCD and above were discouraged. The UP Sugar Policy recognises the need to attract new private mills because the Government sector and the Co-operative sector may not be able to put up these mills due to constraints of funds. The industry has grown horizontally as a result of this. In the past.250TCD (TONS OF CANE) and 2. The Government of India de-licensed sugar sector in August 1998 encouraging entrepreneurs to set up sugar mills without a license but at a distance of 15kms away from existing factories. The de-licensing is applicable not only for new capacity initiatives but also for expansion of existing capacities. Consequently.DOMESTIC CONSUMPTION FOR 2004-2005 (All units in MMT) The Essential Commodities Act (ESA) was amended and the sugar release mechanism was brought within the direct purview of the ESA. The incentive package under the UP . Expansions for 5. The Government of Uttar Pradesh has issued a new UP Sugar Policy.
Maharashtra. The sugarcane area has. etc. however. Though. The area under sugarcane has gradually increased over the years mainly because of much larger diversion of land from other crops to sugarcane by the farmers for economic reasons. Uttar Pradesh and Maharashtra together contribute more than 57% of total production. being a basic commodity. price hike limit has been fixed time to time by the government. Main Production Centers: In India. 2005) and it is one of the most important cash crops in the country. Following table shows area under sugarcane farming and total can production. Gujarat. and Andhra Pradesh. These six states contribute more than 85% of total sugar production in the country. SUGARCANE AREA AND PRODUCTION FROM 1980-1981 TO 2000-2001 & UPTO 2003-2004 . major sugarcane growing states are Uttar Pradesh. Sugarcane Production in India: Sugarcane occupies about 2. declined in the year 2003-04 mainly due to drought and pest attacks.7% of the total cultivated area (Source: ISMA Website accessed on May 16. Tamil Nadu. Otherwise. Still. the consumption of sugar is increasing and the demand is being fulfilled by more production.Sugar Policy includes capital subsidies. Karnataka. Demand Factors: The demand or in other words. reimbursement of transportation costs of sugar. sugar would have been directly influenced by little fluctuations in demand and supply. the price of sugar has been elastic and rising steadily.
3 3. The price elasticity for sugar is relatively inelastic demand.9 3.Year 1980-81 1990-91 1999-'00 2001-02 2002-03 2003-04 2004-05 Area under sugarcane (Million hectares) 2. We can express it by following graph: D P0 PRICE OF SUGAR P D Q0 Q QUANTITY OF SUGAR The above relatively inelastic demand curve shows that with a more increase in price of sugar the demand for the sugar is less affect.3 241. Because of necessity good.7 Sugarcane Production (MMT) 154. .2 201.4 4.1 299.7 4.6 221.2 298.9 Economics Overview on Demand (PRICE ELASTICITY): Sugar as a necessity commodity is used by each and every individual.7 3.2 4.4 281.
1721.78% 62.190.3 143.7 132.Global Production Supply: Following table provides an overview of the production.9 62. hence sugar Companies have been established in large sugarcane growing states like .3 44. since October 2003.063. Further.37% Ending stocks as % of 46.9 139.327.9 48.982.212.7 142.3 62.9 66.6 57.405.3 52.766.3 137.226.12% 48. 134.507. resulting in a deficit of around 2 MMT in 2004-2005.6 47.753. SUPPLY.701.9 42.7 2 62.9 41.3 49.6 13. the world sugar output is forecasted to reach 145.339.389. 128.74% 62.062.2 51.611.0 MMT in 2004-2005. nearly 5 MMT of surplus sugar are expected to have been removed from the world sugar balance.040.040.371. WORLD SUGAR PRODUCTION.0 45.1 47.0 MMT and consumption to reach 147.327.6 45.9 0 43.200. AND DISTRIBUTION (September .223.0 149.647. reducing the stock/ consumption ratio to less than 42. Sugar Production and Supply In India: The sugar industry in the country uses only sugarcane as input.759.720.50% consumption According to ISO.3 62.063. supply and distribution of sugar in the international market.2 48.7 135.573.August) (All figures in '000 metric tons) 20002003-2004 2002-2003 2001-2002 1999-2000 2001 Opening Stocks Production Imports Exports Consumption Ending Stocks 69.1 69.261.223.593.
46% 100. Karnataka.27 0.58 0.64 1.18 1. These six states contribute more than 85% of total sugar production in the country.80% 6.89 0.30% 2.92 0.47% 2.88% 2. Gujarat.03% 0.Uttar Pradesh.55 3.20 13.06% 30.41 0.65 6.59 0.39 0.64 0.39 0.25 1.02% 1.54% 4.00% 4.55 33.60% 23. Following table shows the state-wise sugar production in India for 20022003 and 2003-2004.86% 2.87% 6.28% 6.85% 100.22 1.07 0. SUGAR PRODUCTION BY STATE IN INDIA (in MMT) State 2002-2003 %of Total 2003-2004 % of Total Uttar Pradesh Maharashtra Karnataka Gujarat Tamil Nadu Andhra Pradesh Haryana Punjab Uttaranchal Bihar Others TOTAL 5.44% 8.01% 3.87 1. and Andhra Pradesh.16% 6.50 0.91% 2.22% 8.17 20.21 0. Maharashtra.12 1.24% 7.00% Indian sugar industry has grown horizontally with large number of small sized sugar plants set up throughout the country as opposed to the . Tamil Nadu.14 28.16% 2.86% 9. Uttar Pradesh and Maharashtra together contribute more than 57% of total production.
variety of sugarcane.consolidation of capacity in the rest of the important sugar producing countries. In addition. The average sugarcane crushing capacity in India. Climate and irrigation facilities: Sugarcane is a tropical crop which requires adequate water and sunshine. This available perennial water reduces the state's reliance on seasonal monsoons. and sugar manufacturers. where greater emphasis has been laid on larger capacity of sugar plants. and development measures undertaken by sugarcane farmers. It depends upon several factors like climate.500 . Crop switching from sugarcane to other crops effectively lowers the area under cultivation of sugarcane. Several sugar factories are currently investing in research and development in the field of Entomology to control such pest outbreaks. usually undertaken by individual sugar mills. cooperatives. Crop diseases and pests: Crop diseases affect both the quantity and quality of sugarcane. monsoons can affect the crop yield and quality of the crop. which along with its tributaries and associated canal system accounts for 34% of the total river water available in the country. Brazil and Thailand is given below: AVERAGE SUGARCANE CRUSHING CAPACITY Country Avg. agencies. soil. Harvests have been impacted severely by insects and pests (Eg. Sugarcane yield: This is the total sugarcane output per hectare of land.300 9. have played an important role in increasing sugarcane yields 10. government. Wholly Aphid). Capacity (TCD) Thailand Brazil India FACTORS AFFECTING PRODUCTION: Sugarcane availability depends on: Area under sugarcane cultivation: The area under cultivation of sugarcane in the proximity of the mill determines the amount of sugarcane that can be made available. Agricultural engineering and extension services.200 3. The state of UP is supplied water from the Ganga.
At the point of intersection. variable costs are incurred. In early 1980s. THE BREAK-EVEN POINT: In its simplest form. P. revenue) with the same variation in activity. the proportion of sugarcane drawn by the sugar industry was hovering around 35%. The point at which neither profit nor loss is made is known as the "break-even point" and is represented on the chart below by the intersection of the two lines: `In the diagram above. the line OA represents the variation of income at varying levels of production activity ("output"). The sudden growth in 2002-2003 can be attributed to the fact that sugar prices in this year were very low and Gur and Khandsari manufacturers could not effectively compete with the low sugar . Sugarcane Utilization: Not only has the sugarcane acreage and sugarcane production been increasing. meaning that total costs (fixed + variable) also increase. and khandsari which are forms of crude sugar. In India sugarcane is utilised by sugar mills as well as by traditional users like gur and khandsari producers. OB represents the total fixed costs in the business. costs are exactly equal to income. drawal of sugarcane by the sugar industry has also been increasing over the years. the break-even chart is a graphical representation of costs at various levels of activity shown on the same chart as the variation of income (or sales. Costs are greater than Income. At low levels of output.Diversion of sugarcane to other products: The sugarcane producers may not supply the sugarcane to a sugar manufacturer and divert the production to other products like gur. which went upto to 50% in 1990s and to as high as 69% in the year 2002-2003. As output increases. and hence neither profit nor loss is made.
7 57. Taking into account all the 3 sweeteners i. The consumption of sugar in urban areas in some of the Indian states with higher GDP and income levels.prices.4 50.5 11.e. declined due to rising sugar prices and more intense competition from the alternate sweeteners . however. on a per capita basis.9 56.7 59.gur and khandsari. white sugar consumption is much lower than the world average.8 11.1 11. In the year 2003-2004. In rural areas the alternate sweeteners gur and khandsari are consumed in larger quantities.7 MMT in 1997-1998 to 18.4 SUGAR CONSUMPTION IN INDIA: Total Indian Consumption of sugar has grown at a Compounded Annual Growth Rate of 3.1 Gur and khandsari 54.8 31.5 Seed. SUGARCANE UTILISATION % Sugarcane utilisation for Year 1980-1981 1990-1991 2000-2001 2001-2002 2002-2003 2003-2004 White sugar 33. Apart from white sugar.5 20. white sugar.gur and khandsari.4 28. Indian consumption is more than the world average (See the table below). India also consumes alternate sweeteners .8 11. The consumption of white sugar in India is generally urban based.6% from 14.2 MMT in 20032004.8 37. which are placed at about 9 MMT per annum. feed and chewing 11. gur and khandsari.4 68.1 32.1 11. percentage drawal of sugarcane. However. Following table gives data on sugarcane utilization for different purposes. matches favorably with various .
while a modest rise is forecast for 1999.5 35. The same is true of South Korea. In the Philippines. . Per annum Punjab Haryana Maharashtra Gujarat Kerala Uttar Pradesh Tamil Nadu Karnataka All India 71. But imports continued because of the sharper fall in world market prices. together with liberal import rules to augment domestic supplies after the 1998/99 crop shortfall. Even Malaysia. given the differential between world and domestic prices. As income levels and GDP rises.9 41. the government of which took steps to control domestic demand to stem the outflow of foreign exchange. PER CAPITA CONSUMPTION OF SUGAR IN URBAN INDIA States Kgs. the glut on the domestic market following the sharp rise in 1998/99 production did not stop importers bringing in huge amounts.5 68. as can be seen from the following table.5 In India. Also. and low import tariffs.9 40. kept imports at reasonable levels. This clearly implies that per capita consumption of sweeteners in rural India is much lower. the total per capita consumption of sweeteners in urban India is higher than total India average by around 5 kg per annum. It can be expected that this gap will close with increase in urbanization leading to a growth in the total sweeteners market in India. where net imports dipped only slightly in 1998.5 40. it can be expected that there will be a gradual shift from consumption of alternate sweeteners to white sugar.1 23. The highest per capita consumption of sugar is in the states of Punjab and Haryana which are adjoining the sugar producing region of western UP.developed countries. careful economic management.3 31.2 29. the government stepwise raised the import duty. Following protests by the domestic industry.
While Japan has been affected by the economic crisis in the Far East. mainly saccharin. imports in 1998/99 were noticeably above those of the previous year. But an expected growth of more than 6 percent in 1999 can hardly be called a disaster. And that has nothing to do with Far Eastern economic problems. As a result. The Chinese economy has remained largely untouched by the Asian financial crisis. although GDP growth has slowed to single digits.prevented a fall in sugar consumption. CHART OF ASIAN SUGAR CONSUMPTION . What has affected China's demand growth is not so much the slowdown of the economy but the large usage of high-intensity sweeteners. The very high support levels for sugar that form part of the stabilization regime in Japan have for years impacted on that country's sugar consumption and imports. the long-term declining trend of imports and demand has hardly varied in the past two years.
there will be enough incentive for Indian manufacturers to export. India had an average exportable surplus of 6.69% of the total exportable surplus. As against this. the sugar exported was only 0.07 MMT sugar. exports from a mill do not form part of the quota under the market quota releasesystem. SUGAR STOCK & ACTUAL EXPORTS Year Closing Exportable Stock (MMT) surplus (MMT) Actual Export % export of surplus stocks . It has been exporting sugar occasionally in periods of sugar surpluses. on an average. Further. EXPORTABLE SURPLUS. However. Despite this. In these years. India has not been a consistent exporter of sugar in the past. This is primarily because domestic prices have remained higher than international prices. should quotas for LOME / APEC for India increase.23milliontonesevery year. enabling sugar mills to undertake exports on their own and to compete directly in the international market.Sugar Export: Exports of sugar from the country have been de-canalized since 1997.81 MMT or 7. In the last five years it exported 4.
which restricted legal exports in 1998/99.44 7.23 0. To a large extent.81 1. albeit to a far lesser extent.(MMT) 1999-00 9.3 7. Thailand's sugar industry was plunged into financial difficulties by the country's economic problems and poor returns from the world market. Malaysia and Indonesia.06 19. Many mills had to put sugar up as collateral against bank loans. the real devalued by more than 60 percent.6 2003-04 8. The growth of Brazilian sugar exports must be regarded as one of the main factors behind the fall in world prices.69 Lax financial discipline forced Brazil to freely float the real from January 1999. The creditors in turn were unwilling to release the sugar at rock-bottom prices.07 1.2 0.23 5.5 0.5 6.5 Average 10.30 18.2 1. the devaluation cushioned the effect of the fall in world market prices and helped Brazil to pump out enormous amounts of sugar.38 2000-01 10.1 1. despite a recovery of production. Greater competitiveness and low freight rates made Brazilian sugar appear in markets as far afield as South Korea. Between March 1998 and March 1999. which greatly increased Brazil's competitiveness and the attractiveness of the export market relative to the domestic market for the country's sugar producers. Asian exporters have also contributed to weak prices.3 2002-03 11.75 15. The devaluation of the real has undoubtedly drawn significantly more sugar into the international arena.4 2001-02 11.38 6. Following table provides an overview of the Import and Export of sugar in the international market.6 4.73 4.4 7. . facilitated by the diversion of cane from alcohol to sugar production.
ground-based and satellite-borne sensor and positioning systems for precision field and transport management. The wide range of unit sizes and performance still existing within most national sugar industries. indicates the vast production and efficiency reserves not yet exploited. it cannot be denied that the structure of the world market has changed and that today's price response differs markedly from that before the mid-1980s. SUGAR IN THE NEXT CENTURY: Looking towards the next century. as well as between countries. Raw value Notwithstanding such gyrations. juice filtration. There will also be new developments . a great deal more sugar will be needed. we need have no fears about the future of sugar demand. combined heat and power generation and so on promise that the ever greater productivity achieved in this century will continue in the next. it is obvious that one of the consequences of these changes is greater price stability than in the past. On any estimate of world population growth. Can the additional sugar be produced and which countries will be the main suppliers? Technological advances already under way in the areas of genetic engineering.1000 Tonnes. Without going into details.Net Sugar Imports/Exports .
If true. extraction and production. it is a must for PDS. Agriculture growth pegged at 3. the call to the world's sugar industries in the 21st century is to devise strategies of sustainable development in order to avoid the dangers of an excessive concentration of production and associated price fluctuations. Brazil is the greatest sugar exporter. Optimistion of sugar mill capacity . at 5-6 cents/lb.at the same time dual pricing policy has to go to provide level playing field for all sweeteners.vertical growth need of the day. and Thailand) are profitable at this price. Pricing Decontrol may not be the answer . perhaps. At the beginning of the 19th century. Structural changes on the supply side are the daily bread of the market. Alongside the challenges posed by the ongoing process of liberalization. at the end. From 1904 onwards.in the field of alternative sweeteners. this could completely change the face of the supply side. Brazil already controls 25 percent of the market and still has enormous potential for expansion. None of the other efficient producers (Australia. but. or at least break even. There is circumstantial evidence that with the devaluation of the real Brazil can make money. SUMMARY India is one of the largest producer of sugar in the world and so also the consumer. will impose a ceiling on the price expectations sugar producers can entertain in the longer run. .5% . Cuba was for decades firmly installed in first place.should get together to form a policy also acceptable to politicians. it was Germany. In a few years. Can manage its inventory to its advantage by rotating the same through imports and exports. On the eve of the 21st century. Like in the past planners/policy makers/farmers producers . unless the Brazilian cost structure changes markedly for the worse. at the same time. These new products will contribute to still the world's hunger for sweetness. can procure sugar from market and subsidies in case. Govt. and adverse weather in Brazil will send shock waves through the global sugar market. Guatemala. the world sugar market will mirror that for coffee. There exists a potential in terms of increase in productivity.sugar cane has to compete and compete on its own. Jamaica was the world's leading sugar exporter. without opening the gate to competitors.
For the good of consumer.e. Balanced export/import policy. With consistent policy and competitiveness India can be a regular player in the international market. cost effective and quality producer. Mills and farmers to work together to improve yield and extraction through better harvesting.i.e. farmer and the mills sugar price should move in a band. to hedge on futures. To become internationally competitive . To be ready for free marketing i. . meaning monthly inflow to market to be regulated by Government.
supply delay 3 Sep 2009.965 on August 11. India's new sugar season will begin with much lower stocks and production will be hit by lower sugar recovery from cane after the failure of monsoon rains. the government usually announces quota for next month. In last week of the month. when demand for sugar goes up as people consume more sweets and confectioneries. down three quarters from 10 million tonnes on Oct 1. Farm Minister Sharad Pawar said on Tuesday. up 9. the head of the National Federation of Cooperative Sugar Factories Ltd.7) per 100 kg. The country's peak festival season runs from August to October. traders said.83 million tonnes of non-levy sugar for September. JB Patel. The country released 1. a key market in top producer Maharashtra. but this month it delayed announcement till Thursday evening. but the quantity each mill can sell is fixed by the federal government on a monthly basis. Quota is lower than market expectations." said Mukesh Kuvadia. they said. REUTERS MUMBAI: Indian spot sugar prices jumped over 4 per cent to a fresh record peak on Thursday buoyed by good retail demand and a delay in announcing non-levy sugar quota for September." Kuvadia said. 2008.6 per cent compared to the previous month as the country is heading towards the peak festive season. The spot price had risen more than a quarter in August. India has put stock limits for big . is sold by millers in the open market. 1750 hrs IST. household demand is robust due to new month's beginning and festivals. the price of the most traded S-variety sugar climbed 4.3 ($61. Wholesale traders stock up on food articles in the last and first week of the month to prepare for purchases by India's salaried middle class.India sugar hits record high on demand. or free sale sugar. said India's opening stocks would be at 2. "Prices rose as government delayed announcement of non-levy sugar quota. In Kolhapur. Non-levy. secretary of Bombay Sugar Merchants Association. Besides. Last week. the government said in a statement on Thursday. Depleting stockpile and firmness in overseas markets also bolstered sentiments. who buy in the first two weeks of the month after receiving wages. Millers were not releasing stocks as they were not aware how much they can sell.021. breaching earlier high of Rs 2. "Prices may rise by another 4-5 per cent this week.2 per cent to Rs 3.7 million tonnes. while in 2009 it has jumped more than 64 per cent.
However." He went on to say that as they are manufactured in the Far East. he criticised mobile content offerings. We had high hopes for sales but in reality sales [of the Nokia phones] have greatly exceeded our expectations. as it doesn't support all the operator's services. Carphone Warehouse CEO. he said: "The barrier to 3G has been handsets [size and performance]. The 7600 is sold by Carphone Warehouse but not directly by 3. Dunstone was generally positive about progress in the mobile industry. singling out the success of the Blackberry email device from RIM and saying Apple's iPod may go down as a turning point. However. Live! From Vodafone. saying content is often not exclusive or just too expensive." he said. "It has begun the idea that you download content. have low battery life and generally are a step back from current GSM phones. this morning said his company cannot satisfy demand for Nokia 7600 terminals on 3 networks in the UK and Sweden. Speaking at this week's 3GSM World Congress in Cannes. which are units of Hutchison Whampoa. according to comments from the boss of the continent's largest mobile retailer. which customers have complained are too big. and predicted phones may end up doubling as iPod-like devices. Charles Dunstone. most notably video calling.Demand outstrips supply on Nokia 3G phone Tony Hallett sil Published: 26 Feb 2004 11:50 GMT Nokia handsets for use on the first 3G networks in Europe provided by 3 are in very strong demand. . there must be "planes flying in to London and Stockholm to satisfy demand". often in the form of services such as Active from O2. there is clearly much greater demand than that for existing offerings from Motorola and NEC. OrangeWorld and T-Mobile's T-Zones.
he said: "Everyone is too greedy.99 and MMS photo messages not more than twice that of SMS." He added ringtones and games shouldn't be priced above €0.co.in/#hl=en&q=articles+on+high+sugar+prices&meta=&aq=f& aqi=&aql=&oq=&gs_rfai=&fp=5bcb77e30ca73bbe Managerial economics." he said.Speaking about channels such as CNN trying to charge for their news. News is too freely available for people to think they can charge €5 per month [for it]. Pricing seems to be set by accounts people. ." Reference: http://www. "People don't understand the price elasticity. By getika piyali ghosh. not those in sales or marketing.google. "We're pretty unsophisticated.