Export of Sugar From India

Presented by
Arun Prasath V
Harsha
 INDIAN & GLOBAL SCENARIO
• INDIA IS THE THIRD LARGEST COUNTRY IN TERMS OF SUGARCANE
PRODUCTION

• 30% OF THE TOTAL SUGAR PRODUCED GOES FOR GUR AND KHANDARI , 45%
GOES FOR SUGAR PRODUCTION AND THE 25% FOR ALCOHOL PRODUCTION
(ETHANOL)

• 6 STATES CONTRIBUTE MORE THAN 85% OF TOTAL SUGAR PRODUCED IN INDIA

• INDIA PRODUCES 26 metric tones ON AN AVERAGE BUT THE PRODUCTION FOR
THE FY09 IT IS EXPECTED TO GO BELOW BY 20%

• GOLBAL CONTRIBUTION IS 3% BY INDIA, BRAZIL ALONE DOES 36% AND OTHER

COUNTRIES GIVE A TOTAL OF 45% AND THE REST IS DONE BY CHINA, CUBA ,
INDONEASIA, THILAND, U.K AND USA
Contd,..
• WORLD COUNSUMPTION OF SUGAR 150.3 MMT FOR 2007-2008,
PROJECTED TO BECOME 160.7 BY 2010
• THERE ARE 453 SUGAR MILLS IN THE COUNTRY
• 252 ARE IN THE CO-OPERATIVE SECTOR
• 134 ARE IN THE PIVATE SECTOR
• 67 IN THE PUBLIC SECTOR
• 136 UNITS ARE IN THE IMPLEMANTATION STAGES
• U.P PRODUCES 24% ALONE AND MAHARSHATRA CONTRIBUTES 20%
• STATES AS TAMIL NADU, KARNATAKA, GUJRAT, PUNJAB
• AND ALL THESE STATES CONTRIBUTE A TOTAL OF 85%
 Top Ten Sugar Producers
• Brazil … 30 million tons (20% of global sugar production)
• European Union … 22 million (14.7%)
• India … 20 million (13.3%)
• China … 10 million (6.6%)
• United States … 7 million (4.6%)
• Mexico … 6 million (4%)
• South African Development Community (SADC) … 5.7 million
(3.8%)
• Australia … 5.4 million (3.6%)
• Thailand … 5 million (3.3%)
• Russia … 2.7 million (1.8%)
SUGAR CONTRIBUTION
 SUGAR EXPORT
• INDIA HAS AN AVERAGE EXPORTEABLE SURPLUS OF 6.23 million
tones EVERY YEAR
• THE PAST FIVE YEARS IT EXPORTED 4.07 million tones
• SINCE DOMESTIC PRICES ARE HIGHER THAN INTERNATIONAL THE
RATE OF EXPORT IS EXPECTED TO COME DOWN
• THE MAJOR IMPORTING COUNTRIES OF INDIA ARE BANGLADESH,
PAKISTAN, U.K, JAPAN,S.KOREA
• AND THE NEW ONES ARE KHAZAKISTAN & IRAN
• Not all sugar-producing countries sell their processed sugar on
international trade markets. Currently, 70% the world’s sugar is consumed
in the country where harvested. Only 30% is traded outside country of
origin.
• Global sugar consumption rises by about 2% per year, and has increased
17% from 128 million tons in year 2000 to 150 million in 2006. The highest
sugar consumption per capita is found in Brazil (59 kilograms of sugar per
year), Mexico (53) and Australia (50).
• Top producers that also export the highest percentage of their sugar
production are Australia (76%), Brazil (59%), Thailand (52%) and the
European Union (37%). In contrast, India and Mexico each export
just over 5% while China, U.S. and Russia do not sell processed
sugar to foreign markets.
 Top Ten Sugar Exporters

Below are the leading sugar exporters for 2005-6.

• * Brazil … 17.7 million tons (39% of global sugar exports)

• * European Union … 8.1 million (18%)
• * Australia … 4.1 million (9%)
• * Thailand … 2.6 million (5.8%)
• * SADC … 1.6 million (3.6%)
• * Guatemala … 1.5 million (3.3%)
• * India … 1.4 million (3.1)
• * Persian Gulf … 1.3 million (2.9%)
• * South Africa … 1.3 million (2.9%)
• * Cuba … 1.2 million (2.7%)
 Sugar Acts & Orders
• Government of India
• Ministry of Public Distribution and Consumer Affairs
• Department of Sugar and Edible Oils
• Directorate of Sugar

* Essential Commodities Act, 1955

* Sugar (Control) Order, 1966
* Sugarcane (Control) Order, 1966
* Levy Sugar Supply (Control) Order, 1979
* Sugar (Packing and Marking) Order, 1970
* Sugar Cess Act 1982
* Sugar Development Fund Act 1982
* Sugar Development Fund Rules 1983
* LSPEF Act, 1976
 EXPORT OF SUGAR

• The Directorate General of Foreign Trade (DGFT) has issued a Public Notice
No.8 (RE-2001)/1997-2002, dated the 20th April, 2001 regarding export of
sugar. Accordingly, Agriculture & Processed Food Products Export
Development Authority (APEDA) has been asked to issue Registration-
cum-allocation Certificates (RCACs) to the sugar mills/exporters of sugar
on production of firm and valid contract orders.

• Export of sugar from India is subject to a quantitative ceiling announced

annually for each financial year. The quantitative ceiling is finalised in
consultation with the Department of Consumer Affairs. Pending
finalisation of the quantitative ceiling for sugar exports this year, it has
been decided that RCACs may be issued to sugar mills and exporters of
sugar by APEDA on the production of firm and valid contract orders until
the quantitative ceiling for this year is notified.
 Conclusion
• INDIA IS LACKING DUE TO ITS POLICY,METHODS,AND LACK OF
KNOWLEDGE FOR THIS ONLY GOVERNMENT CAN MAKE A BIG
CHANGE
• INDIA INCLUDES SUGAR AS AN ESSENTIAL COMMODITY AN IT HAS
BECOME MORE LIBERAL IN THIS SECTOR
• INDIA HAS THE POTENTIAL TO BECOME THE WORLDS BIGGEST
EXPORTER BY REMOVING THE MISSING LEADS.