This document discusses recent developments in the Indian sugar industry and their impact on sugar stocks. It notes that India is the world's second largest sugar producer after Brazil. However, in the 2015-16 period, actual sugar production was lower than estimated production and demand. In response, the Indian government withdrew sugar production subsidies, imposed stock holding limits on sugar, and levied a 20% export duty on sugar. These government measures impacted sugar company stocks, which increased when exports rose but fell with the new export duty.

1. Recent happenings In
Sugar Industry
&
its Impact on Sugar
Stocks
Presented by,
Ananya Sree Katta

2. CONTENTS
•Introduction
•Present scenario of sugar industry
•Measures taken by Government
•Impact on Sugar Stocks
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3. Introduction
• Second largest agro-based industry in India
• India isWorld’s largest producer after Brazil
• Sources : Sugarcane , Sugar beet
• Localised production of sugar in areas of sugarcane cultivation
• Based on contract farming , Seasonal in nature
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State Production
(lakh tonnes)
No.of factories
Maharashtra 65.81 105
Uttar Pradesh 45.69 110
Tamil Nadu 17.65 32
Karnataka 11.51 30
Andhra Pradesh 11.36 35
Gujarat 10.51 16

5. Present Scenario ( 2015- 16)
In India
• Estimated sugar production : 28 Mt
• Actual sugar production : 23.1 Mt
• Last year production (2014-15) : 25 Mt
• Country’s sugar demand : 26.6Mt
• Supply gap : 3.5-4 Mt
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6. Measures taken by government
1. Withdrew sugar production subsidy
2. Implemented stock holding limits on sugar
3. Government imposed 20% export duty on sugar
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7. IMPACT ON
STOCKS
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Sugar
stocks
jump yet
again as
ISMA
says
imports
are not
required
(10-5-16)
Sugar stocks
tumble up to
8% on 20%
export duty
hike (17-6-16)
Sugar
stocks
rally up
to 6% on
surge in
sugar
prices
overseas
(30-6-16)
ICICI bank
best high
beta play
among pvt
banks
(28-7-16)
Sensex
snaps 2-
day
losing
streak ,
up to 118
points ;
Nifty
reclaims
8650
(18-8-16)

9. REFERENCES
• http://economictimes.indiatimes.com/topic/sugar-sector
• http://economictimes.indiatimes.com/shree-renuka-sugars-
ltd/stocks/companyid-18608.cms
• http://wap.business-standard.com/article/markets/limits-imposed-on-stock-
turnover-of-sugar-109031300074_1.htmlc
• http://www.yourarticlelibrary.com/industries/sugar-industry-in-india-growth-
problems-and-distribution/14144/
• http://indianexpress.com/article/india/india-news-india/demand-supply-gap-
to-push-sugar-prices-up-next-year-sharad-pawar-2940680/
• http://www.financialexpress.com/markets/commodities/govt-withdraws-
sugar-production-subsidy/259943/
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