1 / 13

Indian Sugar Industry Meeting with Food Secretary, 6 th August, 2012

Indian Sugar Industry Meeting with Food Secretary, 6 th August, 2012. Balance Sheet 2011-12. Sugar Production Projections for 2012-13. *. 1. Levy Sugar Liabilities on Sugar Industry. 10% of production as levy since 2001-02

neva
Télécharger la présentation

Indian Sugar Industry Meeting with Food Secretary, 6 th August, 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Indian Sugar IndustryMeeting with Food Secretary,6th August, 2012

  2. Balance Sheet 2011-12

  3. Sugar Production Projections for 2012-13 *

  4. 1. Levy Sugar Liabilities on Sugar Industry • 10% of production as levy since 2001-02 • In 2009-10, increased to 20%, because of low estimated production of 145 lakh tons, which actually turned out to 189 lakh • 21 lakh tons of levy carried forward as on 1st Oct, 2011 • Worth Rs.6000 crore • Adding 11-12 obligations, total levy available was 47 lakh • Usual average lifting of 16-17 lakh, would leave carry forward of 30 lakh for next year

  5. Actual Lifting of sugar Annual levy requirement on paper -27 lakh tonnes * Data not available beyond April 2009

  6. Problems of Carry Forward of past liabilities • Levy obligations of mills can be carried forward by 2 years • Higher inventory burden/ blocked storage space • Blocked cash flows: cane price arrears • Higher interest burden, borrowed at 14-16% • Quality deterioration in terms of colour, lumps and sucrose • Payment by Govt. at previous year’s rate • If supplied from new season’s production, costs are higher, but rates are still of previous season

  7. Status of Levy Sugar on 30 Sept 2012 • Unreleased quantities: • Plus, there would be some unlifted quantities also

  8. Our Requests for levy sugar…. • Conversion of past liabilities • 2010-11 conversion to be done immediately • Reasonable Carry Forward of past liabilities • Till new production is available for levy • Conversion of past liabilities automatically • Announcement of new season’s price before 30th Sept 2012

  9. 2. Compulsory jute packaging order • JPMA, 1987 covered food-grains, cement, fertiliser and sugar. • Cement and fertilizers excluded in1998 and in 2001 respectively. • Ministry of Textiles administers JPMA, jute being their subject. • Sugar Directorate administers Sugar Packing & Marking Order • It permanently requires compulsory packing in 50 kg jute bags only. • There is an Act viz. JPMA, this Order should be repealed • SAC has to annually recommend for packing in jute bags • Imported jute or the bags can’t be used for foodgrains & sugar

  10. Problems being faced by Sugar Industry • Inadequate jute/jute bags in India (accepted in Parliament too) • 10% of requirement is always imported from Bangladesh • Poor quality of jute bags • Big gaps lead to leakage and moisture regain • Below standard bags, weight and dimension problems, causing mills to fill extra sugar to match gross weight and problems in stacking • Jute bags cost more than double that of PP/HDPE bags • Translates into additional cost of 40 paise per kilo of sugar • Rs.1000 crore annual loss to mills, reduces payment to farmers • Govt. agencies protected by administered price

  11. Sugar should be removed from JPMA • Imports and compulsory packing cannot go together • SAC recommended for 20% compulsory packing of sugar in jute bags for 2012-13 jute year (July-June) • CCEA note for same expected soon • Food Ministry should recommend for complete removal of sugar • Gaps in jute bags allow air, good for foodgrains, bad for sugar • When shortage, sugar should be first completely taken out from JPMA • Treat sugar industry at par with other private industries like cement and fertilisers

  12. 3. High cost of production: Low ex-mill price: Two largest cane producing states (Rs/ qtl)

  13. Thank You

More Related