7th

January 2016

Note On Sugar Situation

1. The sugar season 2015-16 began with a carry forward opening
stock of sugar of about 91.0 lakh tonnes as on October 1,2015. It
is estimated that sugar production during this season would be
around 260 lakh tonnes. This will be sixth continuous year that
India is producing surplus sugar. During previous season 201415, the production was 283 lakh tonnes.
2. The sugar balance sheet for season 2015-16 is estimated as
under: SI.No.
1
2
3
4
5
6

Particulars
Opening stock of sugar
Estimated sugar production
Total availability of sugar
Estimated domestic
consumption of sugar
Expected export of sugar
Balance availability of sugar

Quantity in lakh tonnes

91.0
260.0
351.0
255.0
32.0
64.0

3. Sugar Export The Government of India letter dated 18th of

September 2015 issued from Ministry of Consumer of Affairs,
Food & Public distribution, Krishi Bhawan, New Delhi, released
mandatory factory-wise minimum indicative Export Quotas
(MIEQ) specified for the season 2015-16 of 40 lakh tonnes.
The Government order states that this is a
Government directive, which suggests that it is bind to export the
same by each mill. It has, however, allowed that the quota may
be exported out of own production or transferred for exports from
any other factorys production too.
The Government of India has also decided to pay a
production in subsidy of Rs. 4.50 per quintal directly to farmers in
2015-16 season. This move would cost the exchequer about
Rs.1147 crores. For the farmers to receive direct subsidy, sugar
factories have to meet 80% of the export target.
By the end of December 2015, the actual export
was 4.062 lakh tonnes of sugar, of which raw is 0.197 lakh
tonnes and white is 3.865 lakh tonnes.
The Indian sugar Exim Corporation (ISEC), body
formed by private and cooperative sector sugar mills, has
initiated the export of 1.25 Lakh tonnes of sugar at a loss, which

7th January 2016

may be compensated by selling the quota. Till December 2015,

70,000 tonnes of sugar has been physically exported.
4. Sugar season 2015-16: a)
b)
c)
d)

Number of mills started 479

Cane crushed 734 Lakh tonnes
Sugar production 74 lakh tonnes
Total Cane price Arrears:
Season 2013-14 & earlier Rs. 340 crores
Season 2014-15
Rs. 3088 crores
Season 2015-16
Rs. 5339 crores
Total
Rs. 8767 crores

5. Ethanol Blending Petrol Programme

a) Quantity Allocated 162 crore liters
b) Quantity Offered 104 crore liters
c) Quantity Supplied 48 crore liters
6. Calculation of Loss As on 6th January 2016
a) White Sugar Parity
London Price - $ 414 PMT
Ex- Mill
Rs. 29,000 PMT
Fobbing
Rs. 2300 PMT
Loss
- Rs. 3700 PMT
b) Raw Sugar Parity
New York Price 14.5 Cents that is $320 PMT
Pol Premium $ 13 PMT
Total
$ 333 PMT
Fobbing
Rs. 1600 PMT
Ex-Mill
Rs.20, 600 PMT
Loss
Rs. 8400 PMT
7. Global Sugar Scenario
Particulars
Production
Consumption
Deficit

2015-16 MT
169.371
172.898
(-) 3.527

2014-15 MT
171.340
169.160
2.180

7th January 2016