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(updated on 15.7.2014)

Sugar profile

Contents

1) Sugar estimates for India

2) World Sugar estimates

3) Production of sugarcane and sugar

4) World production

5) Major exporters and importers

6) Major export and import destinations for India

7) Trade data for last five years

8) International versus domestic prices

9) Sugar future prices

10) State Advised cane prices

11) Trade Policy

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1.0 Sugar estimates for India ( Oct 2013- Sept 2014)

Table-1

(Figures in lakh MT)

DoFPD- Department of Food & Public Distribution, DoC- Department of Commerce,

For preparing estimate for 2013-14, production, export and import have been taken

as last three years average.

*The figure of export and import is cumulative upto May, 2014 ( i.e. October, 2013 to

May, 2014)

^ production projected by DoFPD for year 2013-14

2.0 World Sugar Estimates (2013-14)Table- 2

(Unit: lakh MT)2011-12 2012-13 2013-14

World Production 1719.31 1760.33 1757.03

Human Consumption 1581.45 1636.73 1674.86

Total Import 487.91 523.28 504.81

Total Export 557.02 565.61 559.13

Ending Stock 359.87 431.62 455.15

Source: USDA

2012-13 2013-14Estimates

May,2014

Source

66.01 93.07 Opening Sugar stock - DoFPD

251.83 252.55 Production 241.31^ DoFPD

17.18 7.83 Imports 1.44* DoC

335.02 353.45 Availabi lit y - -

11.95 25.83 Total Export 17.53* DoC

323.07 327.62 Total Available for domesticconsumption

- -

230.00 235.00 Consumption - DoFPD

93.07 92.62 Ending Stock - -

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3.0 Production of sugarcane & sugar

Table- 3

SugarSeason

SugarcaneProduction Area( in lac ha.)

SugarcaneProduction ( inlac MT)

SugarProduction (Inlac MT)

Sugarcane Yield (INMT/ha.)

2002-03 45.2 2873.8 201.32 63.582003-04 39.3 2338.6 135.0 59.38

2004-05 36.6 2370.9 136.6 64.75

2005-06 42.0 2811.7 193.2 66.92

2006-07 51.5 3555.2 282.0 69.02

2007-08 50.6 3481.9 263.0 68.88

2008-09 44.2 2850.3 146.8 64.55

2009-10 41.7 2923.0 188.0 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 3412.0 251.4 68.25

2013- 14 50.32 3483.8* 250.0 68.74

Source: NCAER & ISMA (for sugar production) and Agricultural Statistics (for production andarea of sugarcane)

*As per 3rd Advance Estimate ( 2013-14) of DAC released on 15/5/2014

Highlights:

Indias sugar production increased in last 10 years at CAGR of 2.10%.

During the same period, Indias sugarcane production increased at CAGR of 1.58%

and area under sugarcane cultivation at CA\=GR of 1.13%

4.0 World Production

Figure- 1

Source: USDA

India is the 2ndlargest producer of sugar.

Indias share in world production is 13.6% in 2012-13 and 15.32% in 2011-12.

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5.0 Major Exporters and Importers

Figure-2

Source: USDA

China, Indonesia, European Union , United states etc. are the major sugar importing

countries.

Indias share in total global import in 2012-13 was 2.14% & in 2013-14 it is negligible.

Figure-3

Source: USDA

Brazil is the largest exporter of sugar followed by Thailand and Australia.

India is the sixth largest exporter of sugar.

Indias share in total global export in both the year 2012-13 and 2013-14 was 4.9%

and 5.2% respectively.

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6.0 Major Export and Import destinations (for India)

Figure-4

Source- Department of Commerce

The major export destinations for India in 2013-14 are Sudan, Iran, Sri Lanka, UAE

etc.

Figure-5

Source- Department of Commerce

India imports sugar mainly from Brazil.

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7.0 Trade data (India) for last 5 years

Table- 4

(in lakh MT)

Year Export Import

2009-10 0.42 25.512010-11 17.11 11.98

2011-12 27.38 0.99

2012-13 27.91 11.21

2013-14 24.60 8.81

Source: Dept. of Commerce.

8.0 International Vs Domestic Price of Sugar

Figure-6

Source: D/o Commerce for Domestic price and LIFFE

The international prices of sugar were lower than domestic prices for the last one

year owing to global sugar surplus.

Major sugar producers like Brazil, Thailand and India produced record quantity of

sugar in the marketing year 2012-13. In addition to it, higher global sugar surplus for

2013-14 also depress the prices of sugar in International arena.

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9.1 Sugar Futures price

Table-5 (RS/Qtl)

Source: London International Financial Future & Option Exchange (LIFFE)

10.0 State Advised Cane Price

Table -7 (Figures in Rs/ Qtl)

2012-13 2011-12 2010-11 Remark

Punjab 235/240/250 220/225/230 190 Late/General/Early

Haryana 266/271/276 221/226/231 210 Late/Mid/Early

UP 275/280/290 235/240/250 205 Rejected/General/Early

Maharashtra 250/230/210 180/185/205 200 South MH/Central MH/

North MH

Gujarat 250

Tamil nadu 225 220 190 Rs.10/qtl T.C. (linked to

9.5% recovery)

Karnataka 220/240 180 NW Karnataka/ Sl

Karnataka

Bihar 255/265/245 225/235/210 205 General/Premium/

Rejected

Uttarakhand 280/285/295 250/255 210/215 Rejected/General/Early

Andhra

Pradesh

260/240/240 200 180/200 Telangana/ Rayalaseema/

Coastal Andhra + Rs. 200

subsidy

source: ISMA

Futures

month 11 July, 2014

Week ago

( 4 July,14)

Month

Ago

(11 June

,14)

Year Ago

(11 July

,2013)

% Change

over previous

year

Oct, 2014 2295 2394 2369 2295 0

Dec, 2014 2535 2582 2508 2355 7.65

March, 2015 2559 2593 2514 2356 8.61

Source: Intercontinental Exchange ( ICE)

Table-6(Rs/Qtl)

Futures

month 11 July, 2014

Week ago

( 4 July,14)

Month Ago

(11 June

,14)

Year Ago

(11 July

,2013)

% Change

over previous

year

Oct, 2014 2726 2837 2805 2772 -1.65

Dec, 2014 2825 2917 2873 2771 1.95

March, 2015 2925 3001 2940 2793 4.73

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11 Trade Policy

11.1 EXPORT - At present, export of sugar is free

Table- 7

Tariff ItemHS Code

Item Descript ion ExportPolicy

Nature of Restriction

17010000 (a) Sugar* Free Prior registration of quantity with

DGFT.

(b) Preferential QuotaSugar to EU and USA

STE Export permitted through M/s. Indian

Sugar Exim Corporation Limited

subject to quantitative ceiling

notified by DGFT from time to time.

* Export of Pharmaceutical Grade Sugar would not be subject to registration requirement.

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

I. The sugar should be duly certified by APEDA as being organic sugar;II. Prior registration of quantity with DGFT through online system.

11.2 IMPORT The currentappliedduty on import of all types of sugar is 15%.

Table-8

Exim Code Item Descrip tion Policy BoundDuty

NotifiedDuty

Appl iedDuty

1701 CANE OR BEET SUGAR AND CHEMICALLY PURE SUCROSE, IN SOLID

FORM1701 12 00 Beet sugar Free 150% 100% 15%

1701 13 Cane sugar specified inSubheading Note 2 tothis Chapter:

1701 13 10 Cane jaggery Free 150% 100% 15%

1701 13 20 Khandsari sugar Free 150% 100% 15%

1701 13 90 Other Free 150% 100%

15%

1701 14 Other cane sugar: Free

1701 14 10 Cane jaggery Free 150% 100% 15%

1701 14 20 Khandsari sugar Free 150% 100% 15%

1701 14 90 Other 150% 100% 15%

1701 91 00 Refined sugar containingadded flavouring orcolouring matter

Free 150% 100%

15%

1701 99 Other:

1701 99 10 Sugar cubes Free 150% 100% 15%

1701 99 90 Other Free 150% 100% 15%

1701 12 00 Beet sugar Free 150% 100% 15%

Source: DGFT, D/o Revenue, WTO

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