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SUGAR EXPORT

FROM INDIA TO
BANGLADESH
By :- Vinod
Prajapat ( 63 )
MIBS
Pune
INTRODUCTION
INDIA IS THE SECOND LARGEST COUNTRY
IN TERMS OF SUGARCANE PRODUCTION 30% OF
THE TOTAL SUGAR PRODUCED GOES FOR GUR
AND KHANDARI , 45% GOES FOR SUGAR
PRODUCTION AND THE 25% FOR ALCOHOL
PRODUCTION (ETHANOL) 6 STATES CONTRIBUTE
MORE THAN 85% OF TOTAL SUGAR PRODUCED
IN INDIA
INDIAN & GLOBAL
SCENARIO
INDIA PRODUCES 26 MILLION TONES ON
AN AVERAGE BUT THE PRODUCTION FOR
THE FY09 IT IS EXPECTED TO GO BELOW
BY 20 %
GOLBAL CONTRIBUTION IS 3 % BY INDIA ,
BRAZIL ALONE DOES 36 % AND OTHER
COUNTRIES GIVE A TOTAL OF 45 % AND
THE REST IS DONE BY CHINA , CUBA ,
INDONEASIA , THILAND , U . K AND USA
WORLD COUNSUMPTION OF SUGAR
150 . 3 MMT FOR 2007 - 2008 , PROJECTED
TO BECOME 160 . 7 BY 2010
THERE ARE 453 SUGAR MILLS IN THE
COUNTRY
252 ARE IN THE CO - OPERATIVE SECTOR
134 ARE IN THE PIVATE SECTOR
67 IN THE PUBLIC SECTOR
136 UNITS ARE IN THE IMPLEMANTATION STAGES

U . P PRODUCES 24 % ALONE AND


MAHARSHATRA CONTRIBUTES 20 %
STATES AS TAMIL NADU , KARNATAKA ,
GUJRAT , PUNJAB
AND ALL THESE STATES CONTRIBUTE A
TOTAL OF 85 %
SUGAR CONTRIBUTION
INDIAN VIEW
AN OVERVIEW
SUGAR EXPORT
INDIA
} HAS AN AVERAGE EXPORTEABLE
SURPLUS OF 6 . 23 million tones EVERY
YEAR
} THE PAST FIVE YEARS IT EXPORTED 4 . 07
million tones
} SINCE DOMESTIC PRICES ARE HIGHER
THAN INTERNATIONAL THE RATE OF
EXPORT IS EXPECTED TO COME DOWN
Bangladesh

• The annual consumption of sugar in


Bangladesh is 1.2-1.3 million tonnes.
•Refiners are supplying 4,000 tonnes
of sugar to the wholesalers every
day.
PESTLE ANALYSIS
Political :-
Prime Minister: Sheikh Hasina 
GDP :- 6.30%
GDP per capita :- $1400
Government :- Parliamentary
democracy.
Population:- 156,050,883 
Capital:- DHAKA (12,560,000)
Economic 
Exchange rate:-
1 Indian Rupee = 1.23955 Bangladeshi
Taka 
1 Bangladeshi Taka (BDT) = 0.80675
Indian Rupee (INR)
Inflation :- 9.1%
Bank rate :- 5%
Social
 Bangladesh is composite, and over
centuries has assimilated influences
of Hinduism, Jainism, Buddhism, Islam,
hristianism.
Population growth rate:- 1.2%
SWOT ANALYSIS
STRENGTHS
} GLOBAL PRICES TO MOVE UP – AN
INCREMENTAL POSITIVE
} THE DEMAND IS EVER LASTING
} ENVIRONMENTAL CONDITIONS SUITABLE
FOR THE GROWTH OF SUGAR CANE
} ABOUT 2 . 7 % CULITVABLE LAND IS USED
FOR THE CANE PRODUCTION
} THE SUGAR INDUSTRY ALSO INCLUDES
ALCOHOL , GUR AN KHANDRI WHICH IS
MAINLY FOR THE DOMESTIC INDUSTRY
WEAKNESS
} PRODUCTION TO DECLINE BY 20 - 25 %
IN FY09
} SHIFT OF THE FARMER FROM CANE TO
PADDY , WHEAT , PULSES AND OIL
SEEDS
} THE GREATER DIVERSION OF CANE TO
UN - ORGANISED SECTOR
} THE IGNORANCE IN THE RESIDUAL
SUGAR MARKET
} SOME OF THE GOVERNMENT POLICY
THAT ADHERE THE GROWTH OF THE
SUGAR INDUSTRY
} SHORTAGE IN SUGAR CANE SUPPLY
} OBSELETE TECHNOLOGY
OPPRTUNITIES
} PRICES TO RISE BY 25 % IN FY09 AND
MORE IN FY10E
} HIGHER MARGINS , LOWER CYCLICALITY
DRIVING SHIFT TOWERDS INTEGRATION
} THE ON GOING INCREASE IN DEMAND
YEAR AFTER YEAR
} THE SHIFT OF BRAZIL FROM WHITE
SUGAR TO PRODUCTION OF ETHANOL
THREATS
} LESS RAINFALL IN THE HIGHEST
SUGARCANE CULTIVATING REGIONS
} DUE TO WATER SHORTAGE THE SHIFT OF
THE FARMERS TO MULTIPLE CROPS
CULTIVATION
} DUE TO GOVERNMENT POLICIES THE
SELLING OF SUGARCANE BY THE
FARMERS TO PRIVATE SECTORS
} SUGAR PRODUCTION BEING MORE
VOLATILE THAN CANE PRODUCTION
} DUE TO RISE IN DOMESTIC CONSUMTION
THE EXPORT IS LIKELY TO FALL
THE KEY PLAYERS IN SUGAR
INDUSTRY
}BAJAJ HINDUSTAN LTD .
( ENTERPRISE VALUE : Rs mn
62 , 136 )
} BALRAMPUR CHINNI MILLS LTD .
( ENTERPRISE VALUE : Rs mn
32 , 819 )
} SHREE RENUKA SUGARS LTD .
( ENTERPRISE VALUE : Rs mn
43 , 283 )
CONCLUSION
} INDIA IS LACKING DUE TO ITS
POLICY , METHODS , AND LACK OF
KNOWLEDGE FOR THIS ONLY
GOVERNMENT CAN MAKE A BIG CHANGE
} INDIA INCLUDES SUGAR AS AN
ESSENTIAL COMMODITY AN IT HAS
BECOME MORE LIBERAL IN THIS SECTOR
} INDIA HAS THE POTENTIAL TO BECOME
THE WORLDS BIGGEST EXPORTER BY
REMOVING THE MISSING LEADS .
THANK YOU