• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Sugar industry in india
 

Sugar industry in india

on

  • 3,564 views

 

Statistics

Views

Total Views
3,564
Views on SlideShare
3,564
Embed Views
0

Actions

Likes
1
Downloads
256
Comments
1

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

11 of 1 previous next

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Sugar industry in india Sugar industry in india Presentation Transcript

    • GLOBAL SCENARIOSugarcane is cultivated in 20.5 million ha in 121 countries.15 countries such Brazil, India, China, Pakistan, Mexico, Cuba, Australia, Argentina occupy 86% of area with 87% of production. Brazil (22%) is the major producer followed by India (15%) and EU (11%).Brazil, India and the EU control over 48% of the global sugar production.India is the largest consumer of sugar in the world
    • World Sugar Production • India is the largest consumer and second largest producer of sugar in the world with an annual turnover of more than ~USD 16 bn and capital investment of over USD 20 Billion. India Vs World Sugar Production (Mio Tons) 200 50.0% 180 160 40.0% 140 120 30.0% 100 80 20.0% 60 40 10.0% 20 0 0.0% 2011-12 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (E) World Sugar Production 141.1 151.4 167.4 166.6 154.9 160.5 168.9 173.34 India Sugar Production 12.69 19.26 28.36 26.35 14.53 18.91 24.52 26 India as % of world production 9.0% 12.7% 16.9% 15.8% 9.4% 11.8% 14.5% 15%Source: Indian Sugar Mills Association,Handbook-09-10
    • Indian Sugar Industry – Overview• Located in rural heartland, directly contributes to rural economic development .Sector supporting 50 million farmers & their families – around Rs. 55,000 crores cane price paid in 2010-11 .Generates employment for around 12% of the entire rural population (in major 9 sugar producing States)• .One of the most environment friendly industry serving several requirements .Supplying eco-friendly bagasse based energy for consumption – approximate potential: 4000-5000 MW .Mainstay of alcohol industry and eco-friendly Ethanol blending policy• .Significant position in the global sugar space .Largest consumer and second largest producer in the world .World sugar prices impacted by India’s Export/Import decisions
    • Indian Sugar Industry – Overview Contd.World’s second largest sugar producer (24 million tonnes) with a totalinvestment of $11000 million. Around 4 million hectares of the country (around2.7% of the total cultivated area) is under sugarcane production with anaverage recovery around 10%. Country’s sugar production has been driven by factors like cane acreage,yield, drawl recovery percentage, rainfall and the competitive advantage tofarmers over other crops
    • Indian Sugar Industry – Overview Contd.The Indian sugar industry remains the second largest rural agro-industry, with a Rs. 700 billion annual turnover, contributing almostRs. 22.5 billion to the central and state exchequer as tax, cess, andexcise duty annually.. Besides, the industry employs around 2 million rural skilled/semi-skilled workers, among others (Source: ISMA).The Indian sugar industry is classified into organised andunorganised sector. Sugar factories belong to the organized sectorand those who produce Gur and khandsari fall into unorganizedsector which accounts for 20% of the total production.
    • Indian Sugar Industry – Overview Contd.There are 664 sugar factories in India widely dispersed over UP, Maharashtraand in other StatesOwnership of sugar sector –50% private sector and 50% in co-operative & Govt. SectorAverage crushing capacity about 3500 TCDUttar Pradesh and Maharashtra produce 60% of sugar in IndiaCultivation of cane largely monsoon dependent.Sugar industry is seasonal where crushing season begins in October / November and ends in April/MaySugar industry has potential to play a major role in development of rural India.
    • Sugar Mills Composition No. of factories in operation• No of Sugar Mills = 634 - Private = 282 600 - Public = 64 501 516 488 – Co-operative = 288 500 437 453• Mills operating = 503 (current) 385 453• State wise distribution 400 315 412 - UP = 132 300 – MAH = 147 215 – KAR = 50 200 174 – AP = 35 – TN = 38 100• Contribution by 5 states 82% of the 0 total production. 60-61 70-71 80-81 90-9196-97 00-01 05-06 06-0707-08 08-09 09-10 • The growth in the Indian sugar industry has been more driven by horizontal growth (increase in number of units) rather than vertical growth ((increase in average capacity). • The number of factories has increased from 29 in 1930-31 to 488 in 2008-09; while the average capacity of the sugar mills has moved up from 644 ton per day in 1930-31 to ~3183 ton per day. • The mills have capacity varying from 1,500 to 10,000 TCD. The capacities cannot be compared with international average capacities due to the Indian sugarcane industry structure.Source: Indian Sugar Mills Association,Handbook-09-10,Lakshya Analysis
    • WORKING SUGAR MILLS IN INDIA (No of Installed mills 664) Season/Details 2010-2011 2011-2012 Expected No. of 524 528working sugar mills
    • → → Surplus LowerHigher Cane Sugar SugarAvailability Production Price↑ ↓ Farmers shift to cane Mills↑ delay SUGAR INDUSTRY payment CYCLE to farmers Millspromptlypay Farmers ↓↑ Farmers SugarcaneHigher Sugar Sugar production shift to ← ← Availability ← Realisation drops other dims crops 11
    • Classical Indian Sugar CycleNATURAL CYCLICALITY + INDUCED CYCLICALITY• Rain & Drought Decline in Higher sugar• Pest and disease sugar prices lower production Profitability High Higher Sugarcane sugarcane Arrears production Improved Decline in area profitability under cultivation low lower sugarcane sugarcane arrears production Lower sugar Lower availability sugar Increase in production sugar prices Sugarcane payment arrears trigger the decline in sugar production and have a catalyzing effect on cyclicality.
    • The Indian Sugar Cycle (Figs in lakh tons) SUGAR CANE SUGAR YEAR PRODUCTION PRODUCTION 2000-01 2960 185.2 Cane Vs Sugar Production 4000 300 2001-02 2972 185.3 3500 250 2002-03 2874 201.4 3000 200 2003-04 2339 135.5 2500 2000 150 2004-05 2371 126.9 1500 2005-06 2812 192.7 100 1000 2006-07 3555 283.3 50 500 2007-08 3482 263.7 0 0 2008-09 2850 145.4 2009-10 2777 189.0 CANE PRODUCTION SUGAR PRODUCTION 2010-11 3404 245.2 2011-12(E) 3494 260Source: Indian Sugar Mills Association,Handbook-09-10
    • Exports & Imports Sugar Cycle - A Continuous Phenomenon Export Mn T 5.0 5.0 4.0 3.0 2.0 1.7 1.5 1.0 1.0 1.1 1.1 1.0 0.6 0.4 0.4 0.2 0 - -0.1 -0.8 -1.0 -0.2 -1.3 -1.0 -0.3 -2.0 -3.0 -2.0 -2.1 -4.0 Import Mn T -4.1 -5.0India contributes to the World Sugar Trade consistently in the last 20 yrs in the form of Imports or ExportsSource: Indian Sugar Mills Association,Handbook-09-10.
    • Sugar Production and Consumption Sugar Production Vs Consumption 300 300.00 283.61 263.57 260 245.2 250 250.00 189.11 201.42 192.67 230.00 225.00 225 200 185.27 220.00 200.00 172.85 201.60 189.45 210.00 183.84 185.00 150 167.81 150.00 145.38 135.46 126.91 100 100.00 50 50.00 0 0.00 Year Production ConsumptionSource: Indian Sugar Mills Association,Handbook-09-10
    • India - Production Growth Year Production Growth Consumption Growth (Mn Tons) (CAGR) (Mn Tons) (CAGR) 1930-31 to 0.12 to 3.02 11.8% 0.12 to 2.09 10.4% 1960-61 1960-61 to 3.02 to 12.04 4.9 % 2.09 to 10.71 5.8% 1990-91 1990-91 to 12.04 to 25 3.9% 10.71 to 22 3.9% 2010-11Source: Indian Sugar Mills Association,Handbook-09-10,Lakshya Analysis
    • Sweeteners Consumption PER CAPITA CONSUMPTION Year Sugar Gur & Total CAGR - Shift from Gur & (Kg) Khandsari (Kg) Total Khandsari to Sugar (Kg) 1960 - 61 to 4.8 to 15.2 to 20 to 23.8 0.6% 3.5% 1990 -91 12.9 10.9 1990 - 91 - 12.9 to 10.9 to 4.2 23.8 to 0.3% 2.6% 2010 - 11 21 25.2 GDP growth influence the life style and hence shift from Gur & Khandsari to Sugar. So far, the increase in consumption largely addressed by horizontal growth but the Scenario is changing from here and now.Source: Indian Sugar Mills Association,Handbook-09-10,Lakshya Analysis