DOMESTIC SUGAR REVIEW

Development of drought resistant sugarcane

India, in association with Indonesian Bio-Technology Information Centre is planning to develop

drought resistant sugarcane.

There are reports that Government of India is partnering with Indonesia based Sugarcane
Plantation Company PT Perkebunan Nusantara XI (which is owned by Indonesian Government) to
develop the said drought resistant sugarcane.

This sugarcane will be able to tolerate water stress upto 36 days and the cultivation of this crop is
expected to begin in 2016.

Maharashtra Govt. banned digging and deepening of wells

As per Irrigation Department of Maharashtra, Water resources at dams throughout Maharashtra

have dropped to an average of 19%, compared with 32% average during the same period a year
ago.

Maharashtra Government has banned bore well digging below 200 feet in response to water
resource availability in the drought stricken Marathwada region, dropping to 3%.

Minister of Maharashtras water supply and sanitation department said that the Governments
decision to control bore well digging will help deter drought related issues.

State Government is considering option of bringing additional water by rail from Dudhana dam as
the distance is relatively lesser than Miraj.

Farmers in Tamil Nadu seek rationalized cane pricing

National President of Consortium of Indian Farmers Association (CIFA) said that the Government
of Tamil Nadu should directly link the cane price to the revenue realization as is being done in
Maharashtra, U.P and Karnataka.

Farmers Association also asked the State Government to waive off VAT on sugar and molasses
so that mills could be able to pay them additional cane price.

Tamil Nadu Government fixed a cane price of Rs. 285/qtl linked to 9.5% recovery for 2015-16 SS
but private mills in the State have informed the Govt. that they would pay cane price as per FRP +
harvesting and transportation charges.

First 2G ethanol plant in Uttarakhand

First second generation (2G) ethanol plant at Kashipur in Uttarakhand was inaugurated by the
Union Minister last week.

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The technology being adopted to produce ethanol is suited for both Indian and global needs and it
is projected to be capable of converting all types of residues like bagasse, rice, wheat straw,
bamboo, cotton stalk etc. to ethanol within 24 hours with optimum yields.

If it is successfully operated and scaled up, it will establish India as a major global technology
provider in the arena of renewables and reduction in carbon emissions, besides effecting
considerable savings in import of crude oil, the Minister said.

MIEQ exports till 26th April

As per reports furnished by sugar mills to Department of Food, till 26th April sugar mills have moved
14.26 lac tons of sugar under ARE-1 for exports.

Of the total 14.26 lac tons, Maharashtra mills have moved 8.20 lac tons, 4.19 lac tons by Karnataka,
0.84 lac tons by Tamil Nadu and 0.75 lac tons by Gujarat mills.

During 2014-15 SS (entire season), total sugar exports from the country was 11.06 lac tons.

DOMESTIC FUTURES PRICE

Due to sudden spurt in the ex-mill and futures prices in NCDEX from last week of March 2016 and
increase in retail price of sugar across the country crossed, Government of India decided to impose
stock holding limits on sugar.

The news of Governments move on stock holding limits on sugar impacted sugar trading both in
domestic market and futures market and there was a fall of about Rs. 60 to 100 per quintal within
a weeks time.

There were reports that sugar traders were not coming forward to lift/buy sugar from sugar mills in
anticipation of stock holding limit control from Central Government, as they intended to let off their
stock into the market.

May16 futures which was Rs. 3482/qtl a fortnight ago increased by Rs. 11 per quintal in the week
ended on 14th April 2016. But, due to excess supply of sugar by traders over the demand, sugar
futures of May16 dropped by Rs. 87/qtl last week.

Similarly, other future months prices were also dropped in the range of Rs. 20 to 45 /qtl over the
previous week.
FUTURE PRICE OF 'M' GRADE SUGAR ON NCDEX ( DELIVERY CENTRE- KOHLAPUR)
Rs./qtl
Date
Month ago
fortnight ago
Week ago
As on
Increase/
21.03.2016
08.04.2016
14.04.2016
22.04.16
Decrease
over
previous
week
May'16
-87.00
3436.00
3482.00
3493.00
3406.00
Jul'16
-60.00
3574.00
3612.00
3634.00
3574.00
Oct'16

3634.00

3686.00

3696.00

3677.00

-19.00

Dec'16

3580.00

3576.00

3575.00

3528.00

-47.00

March'17

3615.00

3658.00

3658.00

3658.00

0.00
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NCDEX SPOT MARKET

Spot price in Delhi and Kolkata dropped by Rs. 40/qtl last week as compared to previous week. In
Muzzagarnagar centre, there was a drop of Rs. 17.50/qtl whereas in Kolhapur, it remained steady
at Rs. 3617.50/qtl.
SPOT PRICE QUOTED ON NCDEX ( M' GRADE) Rs./qtl
Delivery
Three
Two
Month
fortnight
Centre
months
months
ago
ago
ago
ago
21.03.2016 08.04.2016
21.01.2016 23.02.2016

Week ago
13.04.2016

As on
22.04.16

Increase/
Decrease
over
previous
week

Muzaffarnagar

3161.25

3241.90

3395.00

3635.00

3612.50

3595.00

-17.50

Kolhapur

3128.55

3215.00

3336.50

3605.00

3617.50

3617.50

0.00

Delhi

3175.00

3245.00

3435.00

3595.00

3635.00

3595.00

-40.00

Kolkata

3280.00

3320.00

3520.00

3740.00

3730.00

3777.50

47.50

DOMESTIC RETAIL PRICE IN PRINCIPAL CENTRES

Though there was no increase in retail price of sugar last week, it has increased by Rs. 3 to 6 per
kilo in a months time in all the centres. Retail price in Chennai reached Rs. 43 per kilo since 14 th
April 2016 and in Delhi it is prevailing at Rs. 40/kilo in retail markets since first week of April 2016.

RETAIL PRICE OF SUGAR IN 4 METROPOLITIAN CITIES

Centre

Week ago
14.04.2016

Rs./kg

Month
ago
21.03.2016

fortnight
ago
08.04.2016

As on
22.04.16

Increase/
Decrease
over
previous
day
0

Delhi

37

40

40

40

Kolkata

36

38

39

39

Mumbai

36

38

38

38

Chennai

37

42

43

43

Source: Price Monitoring Cell, Deptt of Consumer Affairs

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