UPDATED.
READ THE ARTICLE AND WATCH THE POWER POINT PRESENTATION ON "INDIAN SUGAR TRADE FLOWS--AFTER DECONTROL IN APRIL2013"-- MADE ON 17.9.2013 IN THE KINGSMAN SUGAR CONFERENCE HELD IN NEW DELHI.
TEJINDER NARANG
1)This article appeared on 19th September, 2013 in BUSINESS LINE
Please click on the following link to read :
https://docs.google.com/file/
2)POWER POINT PRESENTATION ---
https://docs.google.com/file/
READ THE ARTICLE AND WATCH THE POWER POINT PRESENTATION ON "INDIAN SUGAR TRADE FLOWS--AFTER DECONTROL IN APRIL2013"-- MADE ON 17.9.2013 IN THE KINGSMAN SUGAR CONFERENCE HELD IN NEW DELHI.
TEJINDER NARANG
1)This article appeared on 19th September, 2013 in BUSINESS LINE
Please click on the following link to read :
https://docs.google.com/file/
2)POWER POINT PRESENTATION ---
INDIAN SUGAR TRADE--PPT KINGSMAN CONFERENCE DELHI 17.9.2013
SUB--INDIAN TRADE FLOWS --AFTER PARTIAL DECONTROL OF APRIL2013.
CLICK LINK BELOW
Hello Mr Narang, nice presentation.
ReplyDeleteDo you have a view on 2014-15 sugar season? Expect sugar acreage to fall next year?
logically the acreage may decline due to surpluses foreseen in 13-14 and poor export prospects with more carry in 2013-14. But for farmers, return on capital employed including imputed value of land basis 10-11 SAP on sugarcane is 66% vs cotton 36%, paddy/corn 15% soybean 19%--all summer crop. Wheat return is 36% --winter crop.
Deletedespite logic--sugarcane production barring weather--will remain unchanged or higher in 14-15.
Thank you for reply sir. I had few more questions if you could spare some time. I am not too experienced with sugar cycle in India so forgive me for being naive.
ReplyDeleteI was wondering if the prices remain subdued then won't the arrears be too high (especially in UP) with the kind of SAP we have over there? Sugar prices are way below the cost of production in UP. How are farmers going to get paid if the companies are not making any money? Won't the farmers migrate to other crops even though the returns in cane is higher?
Thanks in advance.
sugar cane acreage is going up in UP which is the most ditressed state, despite can arrears. this means that farmers are happy with whatever payments they have recd upfront and the arrears become post dated chq or Fixed deposit.
DeleteOr the mills may be getting cane through thrird parties by cash payments for which the production and sale may not be reported. or under recoveries in sucrose can be shown.
otherwise --if the losses are so damaging then the industry should come to a grinding halt. but this not the case as they are showing profitablity from co-latterals of bagasse, ethanol, mud press or co-generation.
lastly--UP govt might provide them some sort of capital for sustainability with deferred payment arrangements. That may be part of the political deal to keep farmers and producers happy.