Académique Documents
Professionnel Documents
Culture Documents
160
145
140
127
120
2004
-05
2005
- 06
2006
-07
2007
-08
2008
-09
2009
- 10
2010
-11
2011
- 12
2012
-13 013-14 -15 6 (P) (E )
2 2014 2015-1 2016-17
40
29.92
30 26.00
21.27
20 17.67 17.28 16.56
10.82 11.07 11.01
10
2.66 1.65 2.35 3.48
0.04
0
-1.24 -0.98
-10 -5.53 -6.76
-20
-21.38
-30 -24.03
-40
-40.80
-50
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
(E )
Imports Exports
Forcing India to export sugar in last 6 years, even to an unviable global market.
Important to note that India still imported 7.75 lakh tons in the midst of surplus.
Average domestic sugar prices
4
Rs. per ton
7.75 lakh tons of imports in the midst of surplus in 12-13 & 13-14, got stuck in domestic
market, further depressing the already low domestic sugar prices, for the next 2 years in
13-14 and 14-15.
Recovery could happen only after 16 lakh tons exported with production subsidy from
Govt. in 2015-16
Cane Price fixed by Government of India
5
255
250
175
170
150
145
139.12
129.84
125
100
50
FRP
FRP has increased very steeply 3 times in 09-10, 12-13 and 13-14, which made FRP
also unaffordable for the industry.
The mistake seems to be getting repeated for 2017-18 SS
Cost of production vs. Average ex-mill prices
6 Rs./quintal
Rs. Crore
20099
18648
12702 13530
8577
255 4000
105 1000
75 500
0 1 2 3 4 5 6 )
2009-1 2010-1 2011-1 2012-1 2013-1 2014-1 2015-1 -17( ll Jan'17
2016
2200
2200
2100
2000
1800
1700
1600
1450 1525
1391 1450
1400 1400 1470
1298 1350 1410
1285 1360
1310
1200 1250
1100 1120
1000 1080
1000 1000
800
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Hence, in years of low sugar prices, gap between FRP and RSF be filled
from a Price Stabilisation Fund (PSF) created by Government
Price Stabilisation Fund (PSF): ISMAs suggestions
13
Source of funds: Cess on sugar
Instead of cess going to SDF, can use it for PSF
Re.1 per kilo cess will give Govt. Rs.2500 crore annually
Equivalent to Rs.10 per quintal of cane price
This will give time to sugar industry to recover its losses and
get back on its feet
Fuel grade ethanol
16
At 10% blending with petrol, 280 crore litres of ethanol reqd.
779.3
674.1
413.9 382.2
300.6
Linked ethanol price to sugar price and delinked from crude oil price
Ethanol movement
Taxes & duties by States and insistence of excise permits incorrect
Production reported after month got over, & ROs issued for next month
Otherwise, cane price and bank loan repayments will fall in arrears
3400
3200
CoP Rs. 3100/qtl
3170
3081 3067
3000
2950
2910
2800
2790
2600
2618
2583
2400 2460
2433
2405
2200
2157
2000
4. GST: sugar & ethanol at 5%, cane exempted, Cess for PSF
Concluding..
30
5. Adequate sugar availability in current 2016-17 season
With healthy carry forward of 48.5 lakh tons for next season
Need to accept that costs will be higher next year by another 10% due
to an increase in FRP for 2017-18
Hence sugar prices this year and next year will be higher
Thank you