Posts Tagged ‘sugar industry’

Jaggery(Gur) – “The Medicinal Sugar” Final Part

Hello Friends here we come up with an extension of our previous blog  “Jaggery(Gur) – The Medicinal Sugar Part 1” in our “Commodity Corner Series”.

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Jaggery(Gur) – “The Medicinal Sugar” Final Part

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In previous blog we  read about how  Jaggery is formed, what is the market scenario of  jaggery/gur commodity, its current price value and production volume of jiggery in India.

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In this blog we would read about the Karnatka Govt initiative of setting up a jaggery park at Mandya, the country’s fourth largest jaggery market.

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Karnataka Plans Jaggery Park:

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The park, coming up at Mandya, will be developed over the next five years.

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Even as the sugar industry is competing with jaggery makers for a larger share of cane for their mills, Karnataka government has initiated steps to popularise new sugar-rich cane varieties suitable for jaggery making and increase productivity of jaggery units.

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In what could be the first of its kind initiative in the country, the University of Agriculture Sciences, Bangalore, is setting up a jaggery park at Mandya, the country’s fourth largest jaggery market.

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The aim of this initiative is to identify new sugar-rich varieties and encourage farmers to adopt scientific methods to increase production.

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The agriculture ministry has sanctioned the project for setting up of the jaggery park as part of the Rashtriya Krishi Vikas Yojana (RKVY) under the auspices of Zonal Research Station of UAS at VC Farm in Mandya.

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Under the project, farmers will be imparted training on scientific practices in jaggery production.

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The Centre has sanctioned Rs 8 crore for the current year to set up the jaggery park on a pilot basis on 500 acres in Mandya.

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In the first phase, around 150 farmers in select villages of Mandya, Mysore and Chamarajanagar districts will be enrolled to plant sugar-rich varieties of sugarcane from January 2010.

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Under this project, it is envisaged to increase the productivity and adoption of non-chemical methods to produce jaggery.

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Currently, 2,000 jaggery units are operational in and around Mandya, which produce an average 20,000 quintals per day.

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Through this project, it is planned to double the daily production over a period of five years.

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For the current year, around 70,000 hectares is under sugarcane cultivation in Mandya, about 12 per cent less than last year.

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The park will also showcase underroof technologies developed by various sugar research institutes from across the country for the benefit of farmers.

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Controversial Sugarcane Law Gets Parliament Nod

Hello Friends here we come up with the Latest Agri Commodities updates from various parts of the country.

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Controversial Sugarcane Law Gets Parliament Nod

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Controversial sugarcane law gets Parliament nod:

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Parliament today passed a bill that introduces a new sugarcane price regime.

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This was done after government allayed concerns of Opposition that the states will not be required to pay the difference between the Central and the State Advised Price to farmers.

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The Rajya Sabha passed the Essential Commodities (Amendment and Validation) Bill which had already been approved by the Lok Sabha last week.

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Instead of Statutory Minimum Price (SMP) the Central benchmark would be the Fair and Remunerative Price (FRP).

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The Bill replaces the October 21 Ordinance which had led to protests among sugarcane farmers and political parties against obligation sought to be put on the state governments if they chose to pay higher price than FRP.

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The new law would also enable the government to pre-empt the sugar industry’s claim of about Rs 14,000 crore on it on account of levy price fixation.

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In Other major Commodities Updates we can read that Palm oil jumped to the highest level in more than six months after crude oil rose for the first time in 10 day.

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Palm oil jumps to 6-month high as crude oil ends fall:

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Palm oil jumped to the highest level in more than six months after crude oil rose for the first time in 10 days, boosting prospects of the vegetable oil being used as a biofuel.

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Oil snapped the longest decline since 2001 on Tuesday.

As the Federal Reserve said that output at plants, mines and utilities rose 0.8 per cent in November,the fourth increase in five months.

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Palm oil has surged this year on rising demand from India and China, the biggest consumers.

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Stockpiles fell 2 per cent to 1.93 million tonnes from a 10-month high in October, the Malaysian Palm Oil Board said December 10.

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Sweetness Of Sugar – Part 1 :)

Hello Friends here we come up with our another write up on “Commodity Corner Series” 🙂

Sweetness of Sugar

Sweetness of Sugar

We would touch upon aspects like seasonality,cyclic nature and analysis of price trend of Sugar.

The Commodity

Sugar is the most plentiful economic sweetener and India’s second largest agro-processing industry.

There are more than 600 installed sugar mills in the country.

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The Seasonality & Cyclic Nature

The crushing season in the country generally starts from October and reaches its peak in January before March end or April of the next year.

It has been seen that during this period, supply arrives in the market and resultantly prices starts falling.

The cyclic pattern of the sugar industry lasts for 3-5 years.

Currently, the domestic sugar market is entering into a severe shortage phase due to sharp decline in production.

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Analysis Of Price Trend

Tracking short term movements as well as the longer term trends seen in and over the last years, one can analyse and assess its prices.

Since 2006, Sugar has been widely talked displaying a continuous bullish rally both in domestic & international market.

In domestic markets, Sugar prices remained bearish in the most part of the year 2007.

Prices surged by almost 30% in the first half of 2008 & regained its sweetness with supportive factors like lower production estimates and rise in export demand.

From July 2008 sugar prices have been maintaining its bullish trend.

In January, 2009 sugar prices reached record high levels.

With an eye on the rising prices, the Central Government announced measures with aim to control sugar prices.

In the month of May, 2009 world sugar prices have surged to a near-three year high, on the back of speculative buying by
funds betting on supply shortfalls in India and Pakistan.

Since October (the beginning of the 2008-09 sugar season), prices in spot and futures market have witnessed a bull run due to lower production estimates for the season.

Market has already breached the long term bearish trend line and presently trading in an interim bullish trend channel.

Speculators, and especially large traders, have really embraced the long side of the Sugar market.

The commodity has one of the best fundamental pictures right now and it is getting a good deal of solid buying.
The sugar market is overbought but it seems that it still has room to move higher in the longterm bull market than imagined.

It has been one of the better performers of the commodities market.

The price of Sugar has more than tripled in about 3 years.

Though, Sugar seems set to lose some of its sweetness for consumers in the time to come.

Sugar prices recently touched a 28-year high of 25.39 cents per pound on September 30, 2009.

This is likely to climb up going forward, because imports by countries such as China, Russia, Mexico and India are set to rise. These countries are consuming more, but producing less of the commodity.

Sugar futures tended to do well in these years.
An investor could have increased his return variability in these years without sacrificing any of his return.

Stay Tuned for more on Sugar Market in commodity corner 😉

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