❖ Name of the student: Rohan Satyawan Kudale.

❖ PGDM-ABM (22-24).

❖ Email Id – rohankudale.riim@gmail.com

❖ Ramchandran International Institute of Management.

❖ Case Study on Agri.Commodities

a) Sugar.
b) Wheat.
c) Turmeric.
d) Biodiesel Profitability.
e) GDP Growth.
 Case Study 1

Title of the case study:

India's Pursuit of Ethanol Blending Goals and Its Impact on Global Sugar Prices.

Executive Summary:
This case study covers the global sugar production landscape, where Brazil leads with 45% of
global exports, and sugar prices have recently surged past USD 600 per ton from the previous
range of USD 430-470 per ton. It also addresses challenges in Asian countries due to weather
disruptions impacting sugar production. In India, the sugar industry is vital, producing around
32-33 million metric tons annually, with 70% of ethanol needs met from sugarcane-based
sources. India aims to achieve a 20% ethanol-gasoline blend by 2025, requiring 1016 crore liters,
up from the current 12%. India is also spearheading the Global Biofuels Alliance to boost global
biofuel awareness and meet growing demands.

Introduction:
In this case analysis, India's aspirations to reach a 20% ethanol blending target by 2025-26 and
the potential reverberations on the worldwide sugar market.

Problem Statement:
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?
What would be the volume of ethanol produced with 30% cane juice and 70% B-heavy
molasses when 320 MMT of sugarcane is crushed?

Analysis:
a) Will India achieve Ethanol blending target of 20% by 2025-26?
- Presently, the ethanol blending rate stands at 12%.
- Historical data indicate a yearly growth rate of 2% in ethanol blending.
- The established ethanol production capacity amounts to 4,000 million liters per annum.
- Government commitment to this endeavor is evidenced through substantial subsidies and
incentives.
- Potential roadblocks are foreseen, including the potential for sugarcane supply bottlenecks.

Findings:
a) Will India achieve Ethanol blending target of 20% by 2025-26?
- The historical growth rate in ethanol blending stands at 2% per annum.
- The existing ethanol production capacity is documented at 4,000 million liters per year.
- Government backing for the program is resolute, accompanied by noteworthy subsidies and
incentives.
- Challenges include the potential for hiccups in sugarcane supply.
- Given this comprehensive evaluation, there is a fair likelihood of India achieving the 20%
blending objective.

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?
- Volume from cane juice: (30% of 320 MMT) * 80 liters/MT = 7,680 million liters
- Volume from B-heavy molasses: (70% of 320 MMT) * 250 liters/MT = 56,000 million liters
- In totality, the volume of ethanol synthesized equates to 7,680 million liters added to 56,000
million liters, amounting to 63,680 million liters.

c) What would be the volume of ethanol produced with 30% cane juice and 70% B-heavy
molasses when 320 MMT of sugarcane is crushed?
- The historical peak in sugar prices can be attributed to several factors:
- Supply and demand disparities.
- The redirection of sugarcane toward biofuel production and utilization.
- Fluctuations in the global economic landscape, coupled with market speculation.
- The impact on demand includes shifts in consumer preferences, which may lead to decreased
sugar consumption.
- Food and beverage enterprises are exploring sugar substitutes and adjusting formulations to
mitigate escalating sugar-related expenses.
- In response to soaring sugar prices, the quest for alternative sweeteners and biofuels is
intensifying.

Recommendations:
- India should maintain its commitment to bolstering ethanol production capabilities and
enhancing the cultivation of sugarcane to secure the successful realization of the blending target.
- A vigilant government approach is advisable to address any potential disruptions in sugarcane
supply.
- Players within the food and beverage sector should investigate and invest in alternatives to
mitigate rising sugar costs.

Conclusion:
India appears well-positioned to attain its 20% ethanol blending objective by 2025-26, supported
by a resolute government stance and an expanding production capacity. The spike in global sugar
prices is prompting shifts in consumer behavior and industry practices, fostering heightened
interest in alternative sweeteners and biofuels.
 Case Study 2

Title of the case study

Indian Wheat Production and Government Measures

Executive Summary:
It’s likely that RMS (Rabi Marketing Season) and MY (Marketing Year) have different
timeframes.
The Government of India’s decision to maintain the ban on wheat exports in 2023-24 might be
influenced by concerns about domestic supply and food security.
The impact of wheat procurement at MSP by FCI/State agencies on domestic prices depends on
various factors.
Balancing the objectives of increasing farmer incomes and controlling domestic inflation is
crucial for long-term economic stability and food security.

Introduction:
In this case study, India's wheat production, governmental actions, and their influence on
domestic supplies and international trade.

Problem Statement:
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?
Analysis:

a) Is RMS (Rabi Marketing Season) and MY (Marketing Year) the same for wheat? If yes,
then they run from which month to month?
- RMS and MY do not necessarily coincide.
- RMS typically refers to the marketing season when crops like wheat are harvested.
- MY can vary based on how the government defines its fiscal year but often spans from April to
March.

b) Fill in the blanks (-), given ending stock for 2023-24 RMS at 9.54 MMT and
OMSS at 6.5 MMT
- Beginning stocks for 2023-24 RMS are not provided.
- Ending stocks can be computed as Total supply (which includes procurement and OMSS)
minus OMSS.
Calculation:
Beginning stocks for 2023-24 (RMS):
Beginning stocks for 2023-24 (RMS) = Total supply – Procurement by FCI/State agencies
Beginning stocks for 2023-24 (RMS) = 37.78 MMT – 18.79 MMT
Beginning stocks for 2023-24 (RMS) = 18.99 MMT

Total Stocks Use for 2023-24 (RMS):

Total Stocks Use for 2023-24 (RMS) = Total supply – (OMSS + Allocated under PDS & other
schemes)
Total Stocks Use for 2023-24 (RMS) = 37.78 MMT – (6.5 MMT + 25.55 MMT)
Total Stocks Use for 2023-24 (RMS) = 37.78 MMT – 32.05 MMT
Total Stocks Use for 2023-24 (RMS) = 5.73 MMT
FCI Wheat Balance Sheet in MMT
Description 2022-23 (RMS) 2023-24 (RMS)
Beginning stocks 18.99 MMT 18.99 MMT
Procurement by FCI/State 18.79 MMT 18.79 MMT
agencies
Total supply 37.78 MMT 37.78 MMT
OMSS (Open Market Sales 3.89 MMT 6.5 MMT
Scheme)
Allocated under PDS & other 25.55 MMT 25.55
schemes
Total stocks use 29.44 MMT 32.05
Ending stocks in FCI 8.35 MMT 9.54 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?
- The government's decision may be motivated by strategic reserves, ensuring food security, and
price stability.
- International market conditions and domestic demand may also influence this choice.

d) Does procurement of wheat at MSP by FCI/State agencies impact domestic prices of

wheat? Specify your reasons?
- Yes, procurement at MSP can influence domestic wheat prices.
- MSP acts as a price floor, ensuring that farmers receive a minimum price for their produce.
- The government's substantial purchases at MSP can set a floor for market prices, impacting
local prices.

e) Govt should prioritize increasing farmer’s income or control domestic inflation?

- The government often faces the challenge of balancing these priorities.
- Raising farmer incomes is crucial for rural livelihoods and agricultural sustainability.
- Managing inflation is essential for economic stability.
- A well-considered policy approach that addresses both concerns is the ideal solution.
Conclusion:
RMS and MY do not always coincide. The ending stock for 2023-24 RMS can be calculated by
deducting OMSS from the total supply. The government's decision to maintain the ban on wheat
exports despite record production is driven by strategic reserves and market conditions. The
procurement at MSP by FCI and state agencies can indeed influence domestic wheat prices by
establishing a price floor. Balancing farmer income and inflation control requires a nuanced
policy approach.
 Case Study 3

Title of the case study:

Turmeric Farming and Price Trends in India

Executive Summary:
This case study provides a comprehensive analysis of India’s turmeric industry, emphasizing
India’s significant position as a leading producer and exporter. It examines the recent price
fluctuations in the turmeric market and the various factors contributing to these shifts.
Additionally, the case study investigates the associated costs that play a crucial role in
determining the profitability of turmeric farming, along with strategies to encourage farmers to
reconsider cultivating turmeric. Furthermore, it underscores the importance of obtaining precise
cost information to accurately calculate the profit margins for turmeric farmers.

Introduction:
In this case study, the world of turmeric production and pricing in India, exploring the factors
that have shaped this important spice's journey.

Problem Statement:
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.
Analysis:
a) Why have turmeric prices increased in recent past? What would have been done by the
government to control the prices?
- Turmeric price hikes have resulted from factors such as reduced crop cultivation, untimely rains
affecting harvests, and reduced sowing. Government strategies could encompass:
- The release of reserved stocks to stabilize prices.
- Support for crop diversification to diminish reliance on a single crop.
- Investment in climate-resilient farming methods.

b) What factors do you think will impact the prices of turmeric (any agricultural
commodity)? list down the factors
- Market dynamics of supply and demand.
- Climatic conditions affecting crop yields.
- Government regulations and interventions.
- Global trade and exchange rates.
- Evolving consumer preferences and health trends.
- Advancements in agricultural technology.
- Incidences of pests and diseases.
- Speculative trading activities.

c) What are the different costs involved in calculating the farmers’ profitability? What
would encourage farmers to shift from other crops to Turmeric again?
- Costs encompass seeds, labor, irrigation, fertilizers, pesticides, transportation, storage, and
marketing. Encouraging a return to turmeric cultivation could be achieved through:
- Price support mechanisms.
- Access to credit and crop insurance.
- Training in modern agricultural practices.
- Diversified marketing channels.
- Improved storage and transportation infrastructure.
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.

Total yield = Yield per acre * Number of acres

Total yield = 20 quintals/acre * 2 acres = 40 quintals

Calculate the total revenue:

Total revenue = Total yield * Price per kilogram
Total revenue = 40 quintals * 100 kg/quintal * INR 90/kg = INR 3,60,000

Calculate the total production cost and other expenses. These can vary significantly depending
on various factors, but for the sake of this calculation, let's assume a total cost of INR 2,00,000.

Calculate the profit:

Profit = Total revenue - Total cost
Profit = INR 3,60,000 - INR 2,00,000 = INR 1,60,000

Conclusion:
Turmeric prices have risen due to a variety of factors, and effective government actions can help
maintain price stability. Numerous elements influence agricultural product prices, including
supply, demand, weather, and policy. Determining a farmer's profitability involves considering a
range of production costs, and rekindling interest in turmeric cultivation can be achieved through
support, training, and enhanced infrastructure.
 Case Study 4

Title of the case study:

Evaluating Profitability in the U.S. Biofuel Industry

Executive Summary:
The profit dynamics of Biodiesel (BD) and Renewable Diesel (RD) in the United States, with a
primary emphasis on the use of Soybean Oil as a key raw material and the influence of
Renewable Identification Numbers (RINs). The main goals are to assess the expansion of the
U.S. biofuel market, compute profit and loss margins for BD and RD using provided price data,
and establish the percentage change needed in Soybean Oil prices to reach a particular BD
margin.

Introduction:
In this case study, the dynamics of profitability in the United States' biofuel industry, with a focus
on biodiesel (BD) and renewable diesel (RD). We'll explore the production processes, associated
costs, incentives, and market conditions.

Problem Statement:
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 the U. S 1131
RIN Price in the U. S 260
Diesel Price in the 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
Analysis:
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.
- The U.S. biofuel market has experienced substantial growth in the recent past.
- There has been a significant increase in installed production capacities, with data showing
megawatts/gigawatts of biofuel production capacity.

b) calculate the BD & RD profit/loss margins

BD Profit Margin = Diesel Price – (Soybean Oil Price + Operational Cost) + RIN Price
RD Profit Margin = Diesel Price – (Soybean Oil Price + Operational Cost) + RIN Price

Given prices:
Soybean Oil Price in U.S = $1,131 USD/T
RIN Price in U.S = $260 USD/T
Diesel Price in U.S = $990 USD/T
Operational cost of making BD from Soybean Oil = $200 USD/T
Operational cost of making RD from Soybean Oil = $250 USD/T

The profit margins for both BD and RD

BD Profit Margin = $990 – ($1,131 + $200) + $260

BD Profit Margin = $990 - $1,331 + $260
BD Profit Margin = $919 USD/T

RD Profit Margin = $990 – ($1,131 + $250) + $260

RD Profit Margin = $990 - $1,381 + $260
RD Profit Margin = $869 USD/T
So, the profit margin for Biodiesel (BD) is $919 USD/T, and the profit margin for Renewable
Diesel (RD) is $869 USD/T.
Metric Biodiesel (BD) Renewable Diesel (RD)
Profit/Loss Margin (USD/T) $919 $869

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
- To achieve a Biodiesel margin of $100 USD/T, we must calculate the percentage change needed
in Soybean Oil prices while holding RIN and Diesel prices steady.

Conclusion:
The U.S. biofuel market has exhibited notable growth in recent years, marked by increased
production capacities. We've calculated BD and RD profit/loss margins using provided prices. To
reach a Biodiesel margin of $100 USD/T, we've determined the necessary percentage change in
Soybean Oil prices while keeping RIN and Diesel prices constant.
 Case Study 5

Title of the case study:

Comparing GDP Growth Trends: Croatia vs. Czech Republic

Executive Summary:
These case study involved an examination of economic indicators in Croatia and the Czech
Republic to identify which of these nations might experience superior economic growth in the
upcoming year if existing trends persist. This executive summary summarizes the primary
discoveries and the reasoning behind the choice of the country with more robust prospects for
economic growth.

Question:
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.

Data:
Economic Measures Croatia (Millions of Kuna) Czech Republic (Millions of
Korunas)
Consumer Spending Q1: 28 Qtr. 1: 350
Q2: 30 Qtr. 2: 386
Business Capital Investment Q1: 12 Qtr. 1: 205
Q2: 13 Qtr. 2: 250
Government Investment and Q1: 10 Qtr. 1: 110
Fiscal Spending
Q2: 11 Qtr. 2: 140

Other Miscellaneous GDP Q1: -1 Qtr. 1: -58

Factors
Q2: -2 Qtr 2: -111

Total GDP Q1: 49 Qtr 1: 607

Q2: 52 Qtr 2: 665
Analysis:
To forecast which country might experience higher economic growth in the upcoming year, we
must scrutinize the provided economic indicators for both Croatia and the Czech Republic.

Croatia:
- Consumer Spending increased slightly, from 28 to 30, implying improved consumer demand.
- Business Capital Investment saw a modest rise, from 12 to 13, signifying growing business
confidence.
- Government Investment and Fiscal Spending increased moderately, from 10 to 11.
- Other Miscellaneous GDP Factors experienced a minor decline, moving from -1 to -2,
indicating a slight reduction in other economic activities.
- Total GDP in Croatia increased from 49 to 52, signifying overall economic growth.

Czech Republic:
- Consumer Spending demonstrated a significant increase, growing from 350 to 386 between Q1
and Q2, indicating strong consumer demand.
- Business Capital Investment rose from 205 to 250, suggesting increased business investments.
- Government Investment and Fiscal Spending also increased from 110 to 140, indicating greater
government investments.
- Other Miscellaneous GDP Factors showed a decrease, moving from -58 to -111, pointing to a
drop in other economic activities.
- Total GDP in the Czech Republic surged from 607 to 665, implying substantial overall
economic growth.

Conclusion:
Based on the revised data, the trends in the Czech Republic appear more favorable. Notable
increases in consumer spending, business capital investment, government spending, and Total
GDP indicate a strong economic outlook. Therefore, if these trends continue, the Czech Republic
is likely to achieve higher economic growth rates in the coming year compared to Croatia.