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Sugar Profile July 2019
Sugar Profile July 2019
Sugar Profile July 2019
2019)
Contents
1. Sugar Estimates for India......................................................................................................
2. World Sugar Estimates ....................................................................................................... 2
3. Production, Area under cultivation and Yield of Sugarcane and Sugar ............................. 3
4. Major Sugar Producing Countries of world........................................................................ 3
5. Major Exporting and Importing Countries of Sugar........................................................... 4
6. India’s Major Export Destinations and Imports Sources.................................................... 5
7. Trade Flow for India ........................................................................................................... 6
8. Movement of Domestic as well as International Price of Sugar ........................................ 6
9. Futures prices ...................................................................................................................... 7
9.1 Sugar Future Prices ..................................................................................................... 7
9.2 Prices of Sugar in Bench Mark Domestic Markets ..................................................... 7
10. State Advised Cane Price ................................................................................................ 8
11. Trade Policy .................................................................................................................... 8
11.1 Export Policy ............................................................................................................... 8
11.2 Import Policy ............................................................................................................... 9
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.
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.
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.
300
250
200
150
100
50
0
Brazil India European Thailand China United Mexico Russia Pakistan Australia
Union States
India is the 2nd 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.
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.
50.0
Quantity (Lakh MT)
40.0
30.0
20.0
10.0
0.0
Source: Comtrade
Indonesia, China, USA, UAE, Bangladesh, Algeria, Malaysia were the major
sugar importing countries in the world in 2018-19.
2500
Value in Rs. crore
2000
1500
1000
500
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.
2500
Value in Rs. Lakh
2000
1500
1000
500
0
GERMANY ITALY US A PAKISTAN DENMARK JAPAN U ARAB UK BRAZIL
IR EMTS
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.
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.
40000
35000
30000
25000
20000
Oct/15
Nov/16
Nov/17
Nov/18
Oct/16
Oct/17
Oct/18
Nov/15
Jan/17
Jan/18
Jan/19
Jan/16
Sep/15
Sep/16
Sep/17
Sep/18
Aug/15
Aug/16
Aug/17
Aug/18
May/17
May/18
May/19
Jun/15
May/16
Jun/16
Jun/17
Jun/18
Jun/19
Dec/15
Dec/16
Dec/17
Dec/18
Jul/15
Feb/16
Jul/16
Jul/17
Jul/18
Feb/17
Feb/18
Feb/19
Mar/16
Apr/16
Mar/17
Apr/17
Mar/18
Apr/18
Mar/19
Apr/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.
Sugar mills across the country have produced 328 LT of sugar till June 30th , and
expected to reach 330 LT this season, said a release from the Indian Sugar Mills
Association (ISMA).
% 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.
Domestic prices of sugar in major markets in July, 2019 are lower compared to same
period in the previous year.
(Unit: Rs/Tonnes)
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.
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:
Import Policy: The current applied duty on import of all types of sugar is 100%.
# 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.
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