Posts Tagged ‘sugar’

SUGAR……. “Ambas as extremidades de cana de açúcar não pode ser doce”

In Portuguese language “Ambas as extremidades de cana de açúcar não pode ser doce” means both ends of sugar cane cannot be sweet. Sugar travelling though its notorious cycle has always been continuously gathering news & issues all along these years. Starting with the sugar cycle, it follows a 3-4 years cycle with a bumper harvest resulting in higher inventory levels. Declining prices pressurizes the profits of sugar companies. Going around the downtrend in the sugar cycle starts with increased availability of sugars, decline in sugar prices. This prompts the farmers to switch over to other crops resulting in lower cane production. All these leads to higher sugar prices and the cycle turns around.

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FOREIGN NEWS

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•Mexico published a quota to import 100,000 tonnes of sugar to cover a shortfall in supply until the end of the year.

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•Tight supply supports raw sugar.

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•The US Department of Agriculture (USDA) has pegged India’s sugar production at 23.6 million tonnes, marking an increase of over 26 per cent from last year.

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•Brazil crops shrivel as Amazon dries up to lowest in 47 years.

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•Brazil will harvest 639 million tons in the year started May 1, 3.2 percent less than estimated in April.

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•Australia’s 2010/11 sugar output is being threatened by heavy rain in the northeastern cane growing state of Queensland, disrupting this year’s cane crush.

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•Liffe front-month, December white sugar ends $24.20 higher at $649.80 per tonne after earlier setting a 7-month high for the front month of $661.80 a tonne.

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•Market buoyed by a fresh wave of fund buying and crop concerns in South Africa, Argentina, Mexico and Australia.

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DOMESTIC NEWS

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•Sugar production in Uttar Pradesh, may rise to 6.2 million tonnes from 5.18 million tonnes in the review period.

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•Sugar output in Karnataka is likely to decline marginally to 2.3 million tonnes this year from 2.53 million tonnes last year.

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•Sugar output in Tamil Nadu may jump sharply to 2.1 million tonnes in the 2010-11 crop year from 1.25 million tonnes last year.

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•The output in Gujarat is pegged at 1.3 million tonnes against 1.19 million tonnes last year.

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•Cane growers seek higher prices of 200 rupees ($4.49) per 100 kilograms.

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•NCDEX seeks permission to do futures trading in sugar.

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•The Government has declared lower October sugar quota at 17.50 lakh tonnes (lt) against September’s 19 lt.

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•Sugar imported from India will be tested before its sale in Pakistan, said a minister who rejected the impression that Indian sugar was substandard.

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Seasonality – Indian Scenario

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Analyzing the seasonal index of Indian sugar prices, the prices remain under the pressure till the third quarter of the year. The fourth quarter is a seasonal buying period, as the market witness a recovery because of the festive season.As far as the medium to long-term outlook is considered, the price trends in international markets would be the key determinants of future profitability with the crude oil price trends, which determine the diversion of cane crop to ethanol.

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Rajasthan Exempts VAT on Sugar

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

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Rajasthan exempts VAT on sugar

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Rajasthan exempts VAT on Sugar:

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Now sugar would be cheaper by Rs 2 in Rajasthan.

Rajasthan government has decided to exempt VAT on imported sugar in the state till June 30.

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This will help in reining the spiralling sugar prices in a week’s time.

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“The state imposes 4% VAT on sugar. With this exemption, the prices will go down by Rs 160 per quintal,’ says a government official.

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According to Indian Sugar Mills Association, the world sugar economy is facing significant gap between world consumption and production for the second consecutive year.

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The first revision of the world sugar balance for October 2009 to September 2010 puts world production at 159.887 million tonnes, raw value, up by 6.911 million tonnes or 4.5% from the last season.

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The global use of sugar is expected to reach 167.134 mn tonnes.

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Therefore, the world statistical deficit is expected to reach 7.247 million tonnes as against 8.404 million tonnes projected in September 2009.

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Sugar Trade Association of Rajasthan secretary Ballabh Kabra said that this decision can make way for sugar mills to buy imported sugar. “This is the first step to cool down the prices.

We are waiting for government’s nod for importing sugar on our own.

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Sugar prices in Rajasthan are hovering around Rs 41- 43 a kg.

Apart from 4% VAT, sugar attracts mandi tax of 1.6% and an entry tax of 0.25% in Rajasthan,” he said.

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In Other major Commodities Update, we have news about the easing of food prices in coming days as signaled by the Food and Agriculture Minister Sharad Pawar.

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Food prices to ease next fiscal: Pawar

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Food prices are expected to decline in the next fiscal on the back of higher farm output and the only worry then for the government would be on storage, Food and Agriculture Minister Sharad Pawar has said.

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He, however, said that the country would remain import dependent when it came to pulses and edible oils for the next 10 years.

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On the possibility of prices coming down in the next financial year beginning April one, Pawar told in an interview to a news channel: “100 per cent”.

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In 2011-12 the problem which the government of India will have to worry about (is) what to do and where to store”.

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Food inflation touched 17.40 per cent for the week ended January 16 on account of high prices of vegetables and pulses.

On controlling prices of pulses, the minister said.

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Banks Warned Regarding Insurance to Farmers

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

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Banks Warned Regarding Insurance to Farmers

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Banks Warned Regarding Insurance to Farmers:

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Severe action will be taken against banks if they adjust the amounts payable to farmers under crop insurance scheme (Rs. 801 crore) and input subsidy (Rs. 600 crore), against their old loan dues.

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Collectors have been asked to convene meetings of district level bankers’ committees to warn them against withholding these sums, affecting sowing of fresh crops.

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Also, they have been asked to take steps for re-scheduling of crop loans in 1,068 mandals declared as affected by drought or floods.

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The conference also decided to provide road connectivity to all SC and ST habitations with Rs 1,200 crore available for the purpose, begin procurement of kharif produce to build up buffer stocks for subsidizsd schemes.

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Mr Rao said a decision was taken to announce a new tribal policy aiming at empowerment of the tribals.

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In Other major Commodities Updates we can read that retail prices have sugar have started showing some signs of moderation in the national capital of the country.

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Retail sugar prices moderate in Delhi, high in other cities:

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In some good news for consumers, retail prices of sugar which have climbed by more than Rs 6 per kg since January 1 have shown some signs of moderation at least in the national capital Delhi, which has been bearing the brunt of the price spike.

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Latest data from food and consumer affairs ministry shows that retail sugar prices in the capital, which had risen to almost Rs 47 per kg around January 15 has dropped by Rs 2 per kg to Rs 45 in the last couple of days.

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In other major cities though there is hardly any big change.

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In Jammu, government data showed that retail sugar prices have climbed by Rs 8 per kg since January 11, while in Lucknow prices have hardened by Rs 6 and in Jaipur, Aizwal and Dehradun prices have moved by whopping Rs 9 to Rs 10 per kg since January 11.

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Jaggery(Gur) – “The Medicinal Sugar” Part 1

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

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Jaggery(Gur) - "The Medicinal Sugar" Part 1

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Here we would touch upon the aspects related to the commodity “Jaggery” also termed as a “Gur”.

We would also read about how it is formed, what is the market scenario of this commodity, current price value and production volume of jiggery in India.


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Jaggery (Gur) is a coarse, unrefined sugar that has been made from sugar cane juice.

It is the natural mixture of sugar and molasses.

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Formation:


This is considered unrefined and is produced by boiling raw sugar cane or palm juice in iron pans.

It is then formed into blocks.


As it does not go through additional processing, it does retain some of the natural vitamins and minerals of the ingredients used, though boiling the juice does deplete some of these.

Many people do consider jaggery healthier than more refined sugar since it is less stripped of natural nutrients.


This may be eaten in small slices alone as a dessert, or it may be combined with spices to make a variety of Indian desserts and candies.

Jaggery is most often available in cake form, and ranges from fairly crumbly to nearly rock-hard.

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Market Scenario:


It is popular throughout southern and Southeast Asia.

Maharashtra is India’s largest producer and consumer of gur, with even a dedicated agricultural export zone.

Anakapalle is the biggest jaggery market yard in Andhra Pradesh and it caters to Orissa,West Bengal, Assam and other states besides Andhra Pradesh.

The major spot market is at the major terminal markets including Muzaffarnagar and Hapur.

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Price-production Factor:


In 2009, the journey of gur futures at the NCDEX counter started at Rs.750 and is now ruling at Rs. 1100 per quintal.

These surges in prices have been influenced by the high sugarcane rates.


In 2008-09 season, which ended in September, some gur-making units in UP have paid as high as Rs 250-260 a quintal for sugarcane compared to Rs 150-155 a quintal by sugar mills, as the cane production was lower in the state.


Steep fall in production in the northern markets such as Uttar Pradesh and also in the South Karnataka has contributed to the price rise here.

Even in the other markets in AP, such as Nidadavolu in West Godavari, production has fallen drastically.


Drought in the State and uncongenial climate in the northern States were some of the contributory factors to the steep fall in production.

The sugarcane yields in Visakhapatnam, Vizianagaram, and East Godavari districts had fallen due to drought conditions and the recovery was also poor this year.


The festival demand for jaggery is strong all over the country thanks to Pongal festival in Tamil Nadu and Makara Sankranti in the northern and western regions.

It is nearly 56% over last year, largely due to dip in sugarcane availability.


Farmers are selling more cane to gur-making units as they pay higher than sugar mills.

The production in India is expected increase to 8.2 million tonnes in the 2009-10 season on higher prices.

Gur price has outpaced sugar price and as a result more sugarcane would be diverted for making gur during the ensuing 2009-10 season (October-September).

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

Stay Tuned 🙂

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INFLATION – “THE SILENT CREEPER” Part 2

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Hello Friends here we come up with an extension of our previous blog, INFLATION –  “THE SILENT CREEPER”.

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Inflation Silent Creeper Part 2

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In previous Blog we had touched upon the impacts of inflation on economy in current scenario and the reasons for the inflation.

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Now in this part we would look into the possible Measures to check inflation.

Measures to check inflation:


•  To give immediate relief from inflationary pressure, government is planning to check the supply deficiency.

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It has allowed importing sugar.

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It will import rice, as rice production is expected to drop in 2010.

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Import duties on oil seeds have been slashed.

•  Money supply should be checked, otherwise in the time of scarcity excess liquidity will accelerate inflation further.

•  Distribution process should be very fast and transparent.

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Currently we need a well managed and coordinated distribution of stocks through PDS (Public Distribution System), open market sales of public stocks etc.

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Hoarding should be avoided here and government should keep an eye on this.

•  This rising inflation has become a major threat for economy.

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The only key way to check the inflation is to bridge the gap between demand and supply, which may control the price rise.

•  Unfortunately, Indian agriculture is characterized by low input and low output systems.

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Hence we have to increase the productivity.

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For example: Yield of paddy in India is only 2.9 tonnes/hectare as compared to 7.5 tonnes/hectare in US.

•  Check the rising cost of cultivation.

Increasing land, labour, fertilizers and other inputs are discouraging farmers to produce more in absence of sufficient liquidity.

•  Apart from grain, government should also create buffer stocks or strategic reserve of oil seeds and other crop, so that it can release it at the time of crisis.

Next Blog we would try to know about the other concerns in Indian economy regarding the parameters to check inflation.

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Stay Tuned for more on this.

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Price rise a concern but downward trend noticed: Pranab

Union Finance Minister Pranab Mukherjee admitted that price rise has been a cause of concern for the Government but a downward trend has been noticed during the past fortnight.

However, he did not deny that certain essential commodities are having high prices but fortunately for the last one-and-a-half weeks they have been noticing a downward trend, though it will take some more time.

Meanwhile, noting that prices of cereals, fruits and vegetables have been on the higher side, he said if the shortage in supply was not made up through import or other measures, then the prices would go up.

For example pulses, the rate has been increased substantially while our total requirement is 18 million tonne, the total production is 14 MT, a huge shortfall of 4 MT.

On the other hand, he said that unfortunately, shortfall in sugar has happened at a time when the international production has also gone down while prices too remain high.

Bull Run in Commodities May Continue

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

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Bull run in commodities may continue


Bull run in commodities may continue:

Spurt in prices to be driven by dollar weakness, rise in demand and low supplies.

The global bull run in commodities is likely to continue through next year due to dollar weakness, supply restraint and, eventually, a pickup in demand.

Crude oil prices are also up 74 per cent, but the energy complex as a whole is down, as natural gas prices are weighed down by massive oversupply.

Precious metals have also risen 37 per cent.

The base metals complex has performed well this year, driven by the rebound in growth in China, although some of the increased demand has gone into inventory.

Sugar and soybeans have been the exception in 2009, rising sharply while the rest of the agricultural complex underperformed.

This was largely on supply issues; improved crops in 2009-10 are expected to flood the market, dampening prices.

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In Other major Commodities Updates we can read about Govt estimation about the Edible oil output which says that Edible oil output may dip 7.4% in 2009-10.

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Edible oil output may dip 7.4% in 2009-10:

The government today said edible oil output is likely to decline 7.4 per cent to 7.96 million tonnes in the 2009-10.

Edible oil production, last year, stood at 8.6 million tonnes.

Oil season runs from November to October.

Production/net availability of edible oil from all domestic sources is estimated to be 7.96 million tonnes in the 2009-10,” Minister of State for Agriculture K V Thomas said.

The demand of edible oil in the country is estimated to have increased to 17.79 million tones this year, he said.

The domestic edible oil production is likely to decline following a dip in oilseeds production, which is estimated to be 15.23 million tonnes in the kharif season against 17.88 million tonnes in the last season, the official data showed.

Thomas said, “There is a wide gap in the production and demand of edible oil in the country and imports are resorted to bridge the gap.”

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