CASE STUDY 1- SUGAR

Globally, Brazil leads the sugar production and about 45% of the global export coming from
Brazil followed by India and Thailand. Despite good production from Brazil sugar prices crossed
USD 600 per ton recently which previously used to be around USD 430-470 per ton. For the past
years, Asian countries are facing production challenges caused by weather disruption.
In India, Sugar industry is vital agro processing industry and caters for huge domestic
consumption. India current sugar production and consumption is around 32-33 MMT and 28
MMT per annum respectively. Recently Government of India has been emphasizing on large
scale Fuel ethanol production (under Ethanol-Gasoline blending Prog) for which sugarcane-
based feedstock (Molasses) is the key raw material. Currently more than 70% ethanol
requirements are met by sugarcane-based feedstock and remaining from grains (maize, Broken
Rice etc.)
From sugarcane currently various types of feed stocks such as Juice/syrup, B-heavy and C-heavy
molasses are used in manufacturing of Fuel- ethanol which are generated during cane crushing.
By 2025, India has set target of 20% ethanol-gasoline blending rate for which 1016 crore liters of
ethanol is required. The present blending rate is 12%.
Further, India spearheading the recently initiated Global Biofuels Alliance is creating awareness
in the world about ethanol and other biofuels. This will further increase the demand for biofuels
and India has immense possibilities to fulfill these demands.
a) Will India achieve Ethanol blending target of 20% by 2025-26? Substantiate.
b) What would be the volume of ethanol produced with 30% cane juice and 70% B-heavy
molasses when 320 MMT of sugarcane is crushed?
Recovery Rate
1 MT of cane crushed 10.25% of sugar recovery and 4.5% b-heavy molasses.
1 MT of sugarcane cane crushed, and juice route produces 80 liters of ethanol.
1 MT of B-heavy molasses will give 250 liters of ethanol.
c) Why are global sugar prices trading at historic high levels? What would be the impact on
demand?
 CASE STUDY 2 – WHEAT

India is the third largest wheat producing country globally after China and EU (European Union).
For 2023-24 (RMS) Rabi marketing season or MY (Marketing Year), wheat output as per Govt of
India (GOI) estimated at record high of 110.55 MMT compared to 107.742 MMT (Million Metric
Tonnes) last year i.e. (2022-23 RMS).
During 2022-23 MY, Govt of India banned export of wheat from May’22 and imposed restriction
on wheat flour exports from Aug’22. Even after higher output in the subsequent year i.e., 2023-
24 MY, Govt of India has not allowed exports except through G2G (Govt to Govt) route to
neighboring countries or as humanitarian aid.
The Food Corporation of India (FCI), serving as the central agency of the Indian government,
collaborates with various State Agencies to engage in the procurement of wheat and paddy
under a price support scheme. The primary purpose of procurement through price Support is to
guarantee farmers receive profitable prices for their crops, providing them with an incentive to
achieve higher output. For 2022-23 RMS, FCI/State govt agencies procured 18.792 MMT at INR
2015/100 Kgs (Qtl).
Subsequently, GOI allocates or distributes this wheat procured by its agencies in the country
through PDS (Public distribution system) and also sale it at reserve price under OMSS (Open
market Sale scheme).

FCI Wheat Balance Sheet in MMT

Description 2022-23 (RMS) 2023-24 (RMS)
Beginning stocks 18.99 -
Procurement by FCI/State agencies at MSP 18.79 -
Total supply 37.78 -
OMSS (Open Market Sales Scheme) 3.89 6.5
Allocated under PDS & other schemes 25.55 -
Total stocks use 29.44 -
Ending stocks in FCI 8.35 9.54

In the above, table supply and usage of wheat details have been given. During 2022-23 (RMS),
FCI started the year with a beginning stock of 18.99 MMT and subsequent procurement of
18.79 MMT brought total supplies to 37.78 MMT.
Out of this 37.78 MMT of total supplies with FCI, around 3.89 MMT was sold under OMSS and
25.55 MMT was distributed under PDS & other scheme. Leaving 8.35 MMT of wheat by end of
2022-23 MY.

Based on the above case study answer the following: -

a) Is RMS (Rabi Marketing Season) and MY (Marketing Year) the same for wheat? If yes,
then they run from which month to month?
 b) Fill in the blanks (-), given ending stock for 2023-24 RMS at 9.54 MMT and OMSS at 6.5
MMT.
c) Why Govt of India has not revoked ban on Indian wheat exports in 2023-24, even after
witnessing a record output of 110.55 MMT?
d) Does procurement of wheat at MSP by FCI/State agencies impact domestic prices of
wheat? Specify your reasons?
e) Govt should prioritize increasing farmer’s income or control domestic inflation?
CASE STUDY 3 – TURMERIC

Turmeric is an important spice grown in India since ancient times. It is referred as Indian saffron
and commonly called as Haldi. India is the world's leading producer and exporter of turmeric,
accounting for 80% of global production followed by China (8%), Myanmar (4%), Nigeria (3%)
and Bangladesh (3%).
In 2022-23, India exported 0.17 MMT of turmeric. Maharashtra, Telangana and Karnataka are
major Turmeric producing states in India. However, last year the crop acreage decreased in
Maharashtra, due to falling margin/lower realization for farmers and therefore shifting to other
competitive crops.
In addition to lower sowing last year the crop harvest was impacted by unseasonal rains during
Apr’23 and May’23 in Maharashtra.In the current year also, Turmeric sowing has been relatively
lower (25%) in Maharashtra state. Lower prices during the sowing period have discouraged
farmers in choosing turmeric crop and have shifted to other crops like Pulses, grains, and
sugarcane.
Moreover, the crop yields this year are expected to be 20% lower due to El-Nino related dryness
during initial months of sowing. Sowing in Telangana also witnessed 15% lower due to above
weather-related concerns.
Based on the above case study answer the following in short lines: -
a) Why have turmeric prices increased in recent past? What would have been done by the
government to control the prices?
b) What factors do you think will impact the prices of turmeric (any agricultural
commodity)? list down the factors.
c) What are the different costs involved in calculating the farmers’ profitability? What
would encourage farmers to shift from other crops to Turmeric again?
d) Calculate margins of a turmeric farmer having 2 acres of land. Assume avg yield of 20
quintal/acre and avg price of INR 90/kg.
 CASE STUDY 4 - BIODIESEL PROFITABILITY DYNAMICS IN UNITED

Biodiesel (BD) is an alternative clean-burning renewable fuel like conventional diesel. It is

produced using animal fats, vegetable oils, and waste cooking oil. Due to its biodegradable
nature, it is used as a replacement for fossil diesel fuel. It can also be mixed with petroleum
diesel fuel in any proportion.
Renewable diesel (RD), sometimes referred to as hydrotreated vegetable oil (HVO) or green
diesel, is produced using several production processes. In the U.S, the most common process is
known as hydro processing or hydrotreating. The hydrotreating process parallels the process
used to “crack” crude oil into gasoline, diesel, and other petroleum products in a crude oil
refinery.
Over the past few years, significant amount of Biodiesel/Renewable Diesel Blending is
happening across the Globe. However, the cost of BD/RD is generally higher than the Diesel cost
and hence it hurts the profit margins of the Blenders.

To promote clean energy & encourage blending of BD/RD in Diesel, various countries have set
incentives for showing compliance with blending targets set.

Let’s look at the Cost/Profitability dynamics of BD/RD in United states.

 BD/RD in U.S is produced using Soybean Oil as a major feed stock mixed along with
other feeds (Alcohol, greases, catalyst etc.) 1 Ton Soybean Oil is used to produce 1 Ton of
BD/RD.
 Operational cost of making BD from Soybean Oil is 200 USD/T
 Operational cost of making RD from Soybean Oil is 250 USD/T
 For every Ton of BD blended, they get 1.5 RIN as an incentive which can be traded/sold
in open market.
 For every Ton of RD blended, they get 1.7 RIN as an incentive which can be traded/sold
in open market.
 BD/RD is mixed with Diesel in certain ratio and sold at the same price as that of Diesel
which leads to some loss incurred (For example if the cost of BD is 1250 USD/T and
Diesel price is 1000 USD/T, the loss for blenders is 250 USD/T for every Ton BD mixed)
Based on the above case study answer the following in short lines: -
a) Mention about growth in U.S Biofuel market in the last few years. Comment on installed
capacities. Come up with supporting numbers and relevant graphs/images.
b) Consider the following prices & calculate the BD & RD profit/loss margins
Metric USD/T
Soybean Oil Price in U.S 1131
RIN Price in U.S 260
Diesel Price in U.S 990
 c) Keeping RIN & Diesel prices to be unchanged, what should be the percentage change in
Soybean Oil prices for Biodiesel margin to reach 100 USD/T

CASE STUDY 5 - GDP GROWTH AND COMPONENTS

Based on the trends that may be calculated from the following economic measures, which of
the countries below would be expected to achieve higher economic growth rates over the next
year if current trends are sustained? Justify your response.

Note: All MCQ and Case Study questions will be discussed on progress to the further rounds.

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