Indian Institute of Plantation

Management-Bengaluru Karnataka

Commodity Reports
SUGARCANE INDUSTRY

PRESENTED BY: MOHIT

SHARMA
Roll No:01PGDM-AEBM10
 1. Sugar Estimates for India (Crop Year: October 2018 to September 2019)
(Unit: Lakh Tonnes)

Table 1: Sugar Production, Trade, Consumption and Availability

2016-17 2017-18 Particular 2018-19 (P) Source

77.1 39.37 Opening Stock NA^ DoF&PD
202.27 321.96 Production 321.96 DoF&PD
14.22 19.56 Total Imports 14.87* DoC
293.59 380.89 Availability NA @ -
29.7 27.86 Total Exports 39.18* DoC
245 252 Consumption 252 DoF&PD
39.37 101.03 Ending Stock NA # DoF&PD
Source: Department of Food & Public Distribution (DoF&PD), Department of Commerce (DoC)
For preparing provisional balance sheet for 2017-18 production and consumption have been taken from balance
sheet of Department of Food& PD. Export and Import taken as last three years’ average.

Availability: opening stock in central pool plus production plus Total Imports;
Total Availability for Domestic Consumption: Availability minus (total export plus ending stock in central pool).
^Month wise opening stock is not maintained.
*: The figure of export and imports for Apr- July, 2018-19.
@ Final Crop of 2018-19 yet to arrive. Therefore, actual data is awaited.
# Actual ending stock data will be available at the end of the year.

2. World Sugar Estimates (2018-19)

(Unit: Lakh Tonnes)

Table 2: World Sugar Production, Consumption, Trade and Stock

Particular 2016-2017 2017-2018 2018-2019 2019-20*

World Production 1740.3 1944.96 1789.26 1807.32
Human Consumption 1708.16 1735.84 1739.52 1764.49
Total Import 543.52 546.88 510.67 513.17
Total Export 586.81 644.98 564.42 577.27
Ending Stock 422.04 522.45 509.01 478.36
Source: United States Department of Agriculture, *Estimated

 Estimates shows that world sugar production has been increasing since 2016-17
till 2017-18. However, the production is expected to increase in 2019-20 season.

Commodity Profile of Sugar

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 3. Production, Area under cultivation and Yield of Sugarcane and Sugar

Crop/marking Area Production (Lakh Tonnes)

Sugarcane Yield
(Tonnes/Hectares)
Year (lakh Hectares) Sugarcane Sugar

2009-10 41.7 2923 188 70.02

2010-11 48.8 3423.8 243.5 70.09
2011-12 50.4 3610.4 263.4 71.67
2012-13 49.99 3412 258.5 68.25
2013-14 50.12 3521.4 245.5 70.52
2014-15 50.66 3623.85 284.63 71.51
2015-16 49.6 3484.48 251.21 70.72
2016-17 45.17 3060.69 202.27 69.88
2017-18 47.32 3799.05 321.96 74.65
2018-19 50.44 4003.69* 312.00# 75.50
Source: Department of Food & Public Distribution (for Sugar Production) and Agricultural Statistics (for
production and area of Sugarcane).
rd
*: As per 3 Advance Estimate Agricultural Statistics Division (03.06.2019)
# Oct-Apr (2018-2019)

 India’s sugar production has increased in last 10 years at CAGR of 8.17 percent.
 During the same period, India’s sugarcane production has increased at CAGR of 2.91
percent and area under cultivation at CAGR of 0.68 percent.

4. Major Sugar Producing Countries of world

Figure 1: Major Sugar Producing Countries

400
350
Lakh
tonnes 300
250
200
150
100
5
0
0
Brazil India European Thailand China United Mexico Russia Pakistan Australia
Union States

2017-2018 2018-2019 2019-20

Source: United States Department of Agriculture

nd
 India is the 2 largest producer of sugar in the world after Brazil in
2017-18 but this
year due to robust sugar production in India lead the way in 2018-19
sugar season.
 India’s share in the world production of sugar was 22 percent in
2017-18.
 Commodity Profile of Sugar
3
5. Major Exporting and Importing Countries of Sugar

Figure 2: Major Sugar Exporting Countries

300
Quantity (Lakh MT) 250
200
150
100
50
0

2016-2017 2017-2018 2018-2019

Source: Comrade

 Brazil was the largest exporter of sugar followed by Thailand and Australia in 2018-19.
 In 2017-18, India was the sixth largest exporter of sugar having a share of 3.44% in total
global exports whereas it increased to 8.66% in the ongoing season till March.

Figure:3 Major Sugar Importing Countries

60.0
50.0
Quantity (Lakh MT)

40.0
30.0

20.0

10.0
0.0

2016-2017 2017-2018 2018-2019

Source: Comtrade

 Indonesia, China, USA, UAE, Bangladesh, Algeria, Malaysia were the

major sugar importing countries in the world in 2018-19.

Commodity Profile of Sugar

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 6. India’s Major Export Destinations and Imports Sources

Figure 4: Major Export Destination

3000

2500
Value in Rs. crore

2000

1500

1000

500

2016-17 2017-18 2018-19 2019-20*

Source: Department of Commerce

 The major export destinations for India in 2018-19 are Sudan, Myanmar, Sri Lanka,
Somalia, UAE, & Jordan.
 The highest growth in India’s sugar export was for Sudan in 2017-18 compared to
previous year as well as highest in the current on going season.

Figure 5: Major Importing Sources

3000

2500
Value in
Rs. Lakh
2000

1500

1000

500

0
GERMANY ITALY USA PAKISTAN DENMARK JAPAN U ARAB UK
BRAZIL
IR EMTS

2016-17 2017-18 2018-19 2019-20

Source: Department of Commerce

 Substantial part of India’s sugar imports came from Pakistan in 2017-18

followed by Germany. India imported negligible amount of sugar during
the same year from Italy, USA, UAE, Denmark & UK.

Commodity Profile of Sugar

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7. Trade flow of India
(Unit: Lakh Tonnes)

Table 4: Trade Flow for India during 2013-14 to 2019-20

Year Export Import
2013-14 24.58 8.80
2014-15 19.48 15.38
2015-16 38.17 18.87
2016-17 24.76 21.44
2017-18 17.27 24.01
2018-19 39.76 14.88
2019-20(April) 5.74 0.00
Source: Department of Commerce.
 Trade figure shows, that India has been exporting more sugar than that of its
import since 2012-13.
 This sugar season India has exported the maximum quantity since past 6 six years.

8. Movement of Domestic as well as International Price of Sugar

Comparison Between Domestic Sugar Prices & International Sugar Prices

(In Rs./Ton)

40000
35000
30000
25000
20000
Ju n/15 Ju l/15 Au g/15 Se p/15 Oct/15 No v/15 De c/1 5J an/16 Feb /1 6Mar/1 6Apr/1 6May/16 Ju n/16 Ju l/1 6Au g/1 6Sep /1 6Oct/1 6No v/1 6Dec/16 J an /1 7Feb /17 Mar/17 Ap r/17 May/1 7

Jun/17Jul/17Aug/17Sep/17Oct/17Nov/17Dec/17Jan/18Feb/18Mar/18Ap r/18May/18Jun/18Jul/18 Aug/18Sep/18Oct/18Nov/18Dec/18Jan/19Feb/19Mar/19Apr/19May/19Jun/19

Domestic Sugar Prices (All India Average) International Refined Sugar Prices (LIFFE)

Source: Agmarknet (for Domestic price), London International Financial Futures Exchange (LIFFE) (for
international price)

 The international prices of sugar has been lower than domestic price from 2017-18 till
now.
 Domestic sugar prices hovering below or at minimum support price in the recent past
few months in view of surplus production sugar in major producing states and lower
demand due to arrival in monsoon.
t h
 Sugar mills across the country have produced 328 LT of sugar till June 30 , and
expected to reach 330 LT this season, said a release from the Indian Sugar Mills
Association (ISMA).

Commodity Profile of Sugar

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9. Futures prices
9.1 Sugar Futures Price

Table-5: Sugar Futures Price (Raw Sugar) (Rs/Qtl)

Month Year RBI
Today Week ago
Futures month % Change over Ago Ago Dollar
previous year 15-Jul- 16-Jul-
8-Jul-19 15-Jun-19 15-Jul-19
19 18
19-Jul 9.48 2051.45 2091.00 NA 1857.00
19-Oct 7.61 1851.84 2115.00 NA 1711.00 69.6
20-Mar 12.73 2014.60 2065.00 NA 1758.16
Source: Intercontinental Exchange (ICE), New York

Table 6: Sugar Futures Price (White Sugar) (Rs/Qtl)

% Change over Today Week ago Month Ago Year Ago RBI Dollar
Futures month
previous year

15-Jul-19 8-Jul-19 15-Jun-19 16-Jul-18 15-Jul-19

19-Aug 0.294861 2374 2429 NA 2367
19-Oct -12.4069 2015 2210 NA 2265 69.6
20-Dec 0.089206 2242 2304 NA 2240
Source: London International Financial Future & Option Exchange (LIFFE)

 Future Prices of sugar (raw sugar as well as white sugar) are expected to increase over
the previous year as shown in the Table 5 & 6 because Brazil has increased its sugar
production towards ethanol diversion up from previous year. Also the Indian crop is
expected to decrease due to irregular and insufficient rainfall this year.

9.2 Prices of Sugar in Bench Mark Domestic Market

(Unit: Rs/ Quintal)
Table 7: Prices of Sugar in Bench Mark Domestic Market
Centre % Change over Today Week ago Month Ago Year Ago
previous year 16-Jul-19 9-Jul-19 16-Jun-19 16-Jul-18
Sugar S Grade
Kolhapur -0.38 3101 3100 N/A 3113
Sugar M Grade
Delhi -2.87 3215 3195 N/A 3310
Kanpur -3.88 3269 3265 N/A 3401
Kolhapur -1.87 3148 3146 N/A 3208
Kolkata -2.05 3400 3391 N/A 3471
Muzaffar Nagar -4.75 3185 3198 N/A 3344
*NA: Not Available
Source: National Commodity & Derivatives Exchange Limited (NCDEX)

 Domestic prices of sugar in major markets in July, 2019 are lower compared to
same period in the previous year.

Commodity Profile of Sugar

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 10. State Advised Cane Price

(Unit: Rs/Tonnes)

State 2013-14 2014-15 2015-16 2016-17 2017-18

All India (FRP) 2100 2200 2300 2300 2550
UP 2800 2800 2800 3050 3150
Maharashtra NA NA - 2375 -
Punjab 2800 2850 2800-2950 2900 2900
Haryana 2950 3050 3000-3100 3200 3300
Gujarat NA NA - - -
Andhra Pradesh 2600 NA 2360-2400 - -
Karnataka 2500 2500 2300-2625 2300-3050 -
Tamil Nadu 2650 2650 2850 2850 -
Source: Agriwatch NA: Not Available

11. Trade Policy

 Export Policy: Export duty of 20% imposed on sugar vide Department of Revenue
Notification No. 37/2016-Customs dated 16/06/2016 has since been removed vide Customs
Notification 30/2018-Cus,dt. 20-03-2018.

Table 9: Export Policy

HS Code Item Description Export Policy Nature of Restriction
17010000 (a) Sugar* Free

(b) Preferential Quota Free The Certificate of Origin shall be issued by

Sugar to EU under CXL Additional DGFT, Mumbai. The exporters shall
Quota be required to furnish the details of actual
exports (viz. quantity, value, destination,
name & address of foreign buyer etc) to the
Additional DGFT, Mumbai as well as to
APEDA, New Delhi. This will be subject to
quantitative ceiling notified by DGFT from
time to time.
(c) Sugar to USA under Free The quota will be operated by APEDA, New
TRQ Delhi as per the modalities and operational
guidelines to be notified by APEDA. The
exporters shall be required to furnish the
details of actual exports (viz. quantity, value,
destination, name & address of foreign buyer
etc) to APEDA, New Delhi. Certificate of
Origin, if required, shall be issued by
Additional DGFT, Mumbai. This will be subject
to quantitative ceiling notified by DGFT from
time to time.
Source: Directorate General of Foreign Trade (DGFT), Department of Revenue
*: Export of Pharmaceutical Grade Sugar would not be subject to registration requirement.

Export of organic sugar without any quantity limits, is permitted till the time export of sugar
is “Free”. Such export is subject to following conditions:

Commodity Profile of Sugar

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  Sugar should be duly certified by APEDA as being organic sugar;
 Prior registration of quantity with DGFT through online system has been
th
dispensed with vide Notification No. 20/2015-20 dated 7 September, 2015.
Import Policy: The current applied duty on import of all types of sugar is 100%.

Table 10: Import Policy

Exim Item Description Import Bound Standard Applied
Code Policy Duty Duty Duty#
1701 Cane or Beet Sugar and Chemically Pure Sucrose In Solid Form

1701 12 00 Beet sugar Free 150% 100% 100%

1701 13 Cane sugar specified in
Subheading Note 2 to this
Chapter:
1701 13 10 Cane jaggery Free 150% 100% 100%
1701 13 20 Khandsari sugar Free 150% 100% 100%
1701 13 90 Other Free 150% 100% 100%
1701 14 Other cane sugar:
1701 14 10 Cane jaggery Free 150% 100% 100%
1701 14 20 Khandsari sugar Free 150% 100% 100%
1701 14 90 Other 150% 100% 100%
1701 91 00 Refined sugar containing Free 150% 100% 100%
added flavouring or
colouring matter
1701 99 Other:
1701 99 10 Sugar cubes Free 150% 100% 100%
1701 99 90 Other Free 150% 100% 100%
1701 12 00 Beet sugar Free 150% 100% 100%
Source: Directorate General of Foreign Trade (DGFT), Department of Revenue and World Trade
Organisation (WTO).

# Applied duty on sugar was increased from 50% to 100% vide Notification No. 24/2018-
Customs dated 6 th February, 2018.

##Duty Free Import Authorization Scheme shall not be available for imports of raw sugar vide
DGFT’s notification No. 5/2015-20 dated 1st May, 2015.

 The requirement of registration of quantity with DGFT for export of sugar has been
dispensed with vide DGFT’s Notification No. 20/2015-20 dated 7.9.2015.
12. Signification Changes for the Month: NIL.

Disclaimer: The information and opinions contained in the document have been compiled from
various sources believed to be reliable. This Department will not be liable for any losses and
damages in connection with the uses of the information provided in the commodity profile.

****

Commodity Profile of Sugar

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