Friday, October 12, 2012

YELLOW PEA MARKET IN INDIA



Market of dry pea in India

India is the major player in the world market when it comes to the pulse scenario. The country is among the major producers, the largest consumer and also the largest importer of pulses in the world. Due the fact that India is the second most populated country of the world and majority of the population depending upon pulses as food, the advantage of being one of the largest producers of pulses in the world is wasted. That is why the country has to rely on pulse import to satisfy the domestic demand. Regarding peas production, India produces around 800000 metric tons of dry peas annually and stands 4th among the major pea producing countries of the world. Uttar Pradesh produces the major share of the country’s produce.
The consumption level for yellow pea in the country is so large that being a dominant producer; India is not able to satisfy its domestic consumption demand. The reason for the large demand is the ever-increasing population of the country and more and more people depending on the dry pea as their staple diet. This is the reason that India also has to import high levels of pulse. This makes India one of the largest importers of the crop. As a matter of fact, pea is heavily imported into the country and accounts for around 40% of the total pulse import of the country. Most of the yellow pea traded in the country is imported from various pea-exporting countries and the imports account up to around 9 lakh tons annually. Imports of yellow pea into India have shown a rising trend as the imports have increased sharply since last few years. The exporters from which India imports yellow peas are
  • Canada
  • Australia
  • Myanmar
  • France
Market influencing factors
  • Flow of information in the value chain of peas
  • Black marketing and Hoarding
  • Crop situation in the major pea producing countries
  • Prices of the competitive pulses in the country like chickpea, tur, urad etc
Major trading centres
The major trading centres of yellow pea in India are
  • Mumbai (Maharashtra)
  • Jalgaon (Maharashtra)
  • Latur (Maharashtra)
  • Akola (Maharashtra)
  • Indore (Madhya Pradesh)
  • Bhopal (Madhya Pradesh)
  • Vidisha (Madhya Pradesh)
Yellow pea is traded in Indian commodity exchanges namely
 National Commodity & Derivatives Exchange ltd 
 Multi Commodity Exchange of India ltd.

Sunday, September 23, 2012

EMERGING NATIONAL APMG

National APMC

 National Agriculture Produce Marketing Company of India (National APMC) is looking at covering maximum number of states with or without having an APMC act, so as to create a large chain of buyers and sellers of agro-produces throughout the country. 

National APMC is looking ahead to integrate all major APMCs across the country, for which initially talks are on with seven state governments where the APMC act is in force, while states like Bihar and Kerala too are on radar of the exchange as they don’t have the state APMC act. 

“We are considering to launch spot exchange operations in states including Rajasthan, Maharashtra, Karnataka, Uttar Pradesh, West Bengal, Madhya Pradesh and Andhra Pradesh. However, we are waiting for the approval from the respective state governments. Meanwhile, in states like Bihar and Kerala, where the state APMC act is not in force, we can start operations faster,” said J Cheenath, chief executive officer, National APMC. 

Speaking to Commodity Online, Cheenath mentioned that initially the exchange would focus on integrating all APMCs in Gujarat and create membership base across the country. “We are planning to start-off our operations in April with about 250 members, which we expect to touch 2000 in next six months. Ideally, there would be an addition of 2000 members every six months over some period,” said Cheenath, who recently took over the charge of the exchange as a CEO. National APMC is co-promoted by Gujarat Niyantrit Bazaar Sangh (GNBS) and Neptune Overseas Ltd (NOL). 

The exchange has received permission to offer spot trading in three commodities in Gujarat that includes cotton, jeera and castor seed. “These are the three commodities, where Gujarat holds the key position in production. So, we can have better pricing mechanism in place for our sellers as well as buyers. We have sought the state government’s approval to add a few more commodities to our kitty. Once achieved significant variety of commodities, we would be able to cater to the requirements of our members situated in different parts of India,” Cheenath said adding that a seller from Gujarat would be able to sell his produces to the members of the exchange located anywhere in India, which would give sellers the opportunity to get best price for the goods. 

In Gujarat, the exchange is mulling to start spot trading in other eight commodities including mustard, groundnut, sesame, wheat, paddy, bajra, potato and onion. 

Commenting on the membership base and area of operations in the commodities like pepper, castor, rubber etc, where NMCE already has a presence, Cheenath explained that it would be a benefit to both the exchanges, as NMCE deals primarily in the futures trades, while National APMC would essentially operate in spot trades. 

“This will be a win-win situation for both of us. Additionally, this would provide better opportunity to the hedgers to gain maximum profit as he can buy goods in spot on National APMC and sell them in futures on NMCE, or vice-versa. All existing members of NMCE, who are interested in spot trading, would be offered membership of National APMC,” he added. 

National APMC has fixed initial membership fees as low as Rs.5000 per member, which is much less than that offered by other exchanges. “We are focusing in providing excellent service to the buyer and top quality goods to the buyers. In order to ensure larger participation, we have kept the prices as low as possible,” Cheenath said.


Wednesday, September 12, 2012

SUGARCANE CULTIVATION IN INDIA


SUGARCANE CULTIVATION IN INDIA

The cane plant is a coarse growing member of the grass family with juice or sap high in sugar content. This tropical plant is ready in 11-18 months. The mature stems may vary from 4 to 12 feet or more ill height, and in commercial varieties are from 0.75 to 2 inches in diameter. The stem has joints or nodes as in other grasses. These range from 4 to 10 inches apart along the aboveground section of the stem. At each node a broad leaf rises which consists of a sheaf or base and the leaf blade. The leaf blade is very long and narrow, varying in width from 1 to 3 inches and up to 5 feet or more in length. Also, at each node along the stem is a bud, protected under the leaf sheath. 

PLANTING 

Planting sections of the stem propagates sugar cane plants. In planting cane fields, mature cane stalks are cut into sections and laid horizontally in furrows. Usually only one node on a stem piece develops a new plant because of polarity along the stem piece. When laying them horizontally and covering with soil a new stem plant stem sections grows from the bud, and roots grow from the base of the new stem. The stem branches below ground so several may rise as a clump from the growth of the bud at a node.
Planting is in rows about 6 feet apart to make possible cultivation and use of herbicides for early weed control. As plants become tall lower leaves along the stems ultimately drop off, so only leaves toward the top remain green and active. Between the nodes the stems have a hard, thin, outer tissue or rind and a softer center. The high sugar   containing juice is in this center. More than one crop is harvested from a planting. After the first crop is removed two or more so-called stubble crops are obtained. This results from growth of new stalks from the bases of stalks cut near the ground level in harvesting.

HARVESTING

Harvesting of cane is highly mechanized. Machines top the canes at a uniform height, cut them off at ground level, and deposit them in rows. Leaves and trash are burned from the cane in the rows by use of flamethrower type machines. An alternate method is to burn the leaves from the standing cane, after which it is cut and taken directly to the mill. Delay between cutting and milling in either case is short as possible since delay results in loss of sugar content. 

Tuesday, September 11, 2012

SUGAR MARKET SCENARIO IN INDIA

Indian sugar market scenario


India is the world's largest sugar consumer, accounting for 15% of global consumption.

In India sugar production follows a 5-7 year cycle. Sugar production increases over a 3-4 year period, reaches a high, which in turn, results in lower sugar prices. Lower sugar price and increased sugarcane arrears results in lower sugarcane production for the next 2-3 years. And the sugar prices shoot up and the area under sugarcane rises during the next season. As a result Sugar in India is also a huge 'swing producer' - severe year-to-year production fluctuations affects its trade status and in turn global prices of sugar. 

The Indian sugar industry remains the second largest rural agro-industry after cotton textiles. With over 600 operating sugar mills across India, about 50 million sugarcane farmers and a large number of agricultural labourers are involved in sugarcane cultivation and ancillary activities; the industry remains a potent rural economy driver.

Sugar trading in India is not easy as its price affects the budget of common man in India hence; it is a politically sensitive commodity. Currently all aspects of sugar industry be it production consumption or sales is controlled. However growing market pressure has made government look into partially decontrol the industry. 

Sugar production is expected to fall by one million tonnes in the next 2012-13 marketing year starting October to around 25 million tonnes, on likely dip in output in Maharashtra and Karnataka, an industry body said.
In the current marketing year (October-September), sugar output is pegged at 26 million tonnes. Of which, mills have produced 25.5 million tonnes till May of this year, it said.

"In the 2012-13, we are expecting production to be on lower side around 25 million tonnes as Maharashtra and Karnataka, have received very less rains so far this year," National Federation of Cooperative Sugar Factories (NFCSF), Managing Director Vinay Kumar told PTI.

Production in Maharashtra, the country's biggest sugar producing state, is expected to decline by 10% from over 9 million tonnes estimated for this year, as sugarcane yields could suffer due to less rains, he said.

A similar trend of fall in production is expected in Karnataka in the 2012-13 marketing year, he said. The state is estimated to produce 3.8 million tonnes of sugar this year.

However, sugar production in Uttar Pradesh, the country's second largest sugar producing state, is seen to be at around the current year's level of 6.8 million tonnes, he added.

Kumar said, "Planting of sugarcane is still going on in Maharashtra and Karnataka. But rains in these two states have been less by 10% so far. Higher sugar production will all depend on productivity of sugarcane."

Sugarcane is planted in Maharashtra and Karnataka for 11 months. In northern states, sugarcane planting has almost been completed. While the first round of planting of cane undertook between September and November last year, the second round of planting ended last month, an agriculture scientist said.

According to the government data, sugarcane has been planted in 5.17 million hectares as on June 15 of 2012-13 crop year as against 4.94 million hectares in the year-ago period.

The country's 2012-13 sugar production will, however, be higher than the country's annual demand of 22 million tonnes.
Sugarcane is the main sugar producing crop that contributes nearly 75% to the total sugar pool at the global level. It, Saccharum spp. Complex, is the prime source of sugar in India. Sugar is a commodity of mass consumption and the cheapest source of energy in India, supplying around 10% of the daily calorie intake. India is the second largest producer of sugar, falling marginally behind Brazil, and also the largest consumer of sugar in the world, with the demand nearly equaling the supply in most cases.

Depending upon the variety and sowing time it takes about 12 to 18 months to mature. In general January to March is the period of planting and November to March is the period of harvesting. In some states sugarcane, is grown around the year. Crushing usually begins within a month after the harvesting begins and continues throughout the year. Sugar comes in three forms: Large crystals (L-grade), Medium crystals (M-grade) and Small crystals (S grade). M and S grades form about 80% of total sugar production and are traded on the NCDEX platform. The quality of sugar is gauged using a parameter known as the ICUMSA number, which assesses the chemical properties of sugar for grading. The lower the ICUMSA number, the better the quality.


Monday, September 10, 2012

SUGAR SCENARIO IN INDIA

India Sugar Scenario


India is the largest consumer and second largest producer of sugar in World. Sugar is produced in 115 countries. It is extracted from different raw materials, sugarcane and sugar beet. Sugarcane is cultivated under tropical climates, while sugar beet is grown in temperate regions. Of the 115 sugar producing countries, 67 produce sugar from cane only, 39 from beet only and 9 from both cane and beet. Brazil, India, Thailand, Australia and Cuba are the largest sugarcane producer. Other beet sugar producing countries include the US, Turkey, Ukraine, Poland and Russia.
Sugar production is effected by acreage and yield, sugarcane availability, recovery percentage and duration of crushing. Of these, area is highest in Uttar Pradesh followed by Maharashtra, yield is highest in Tamil Nadu, and average recovery is highest in Maharashtra. Average duration of crushing is almost equal in Maharashtra, Gujarat and Tamil Nadu (about 150 days) while in Uttar Pradesh it is about 100 days only. Maharashtra is the largest producer of sugar in the country followed by Uttar Pradesh. Together these two states account for over 60% of the total sugar production in the country. Total production for marketing year 2011-12 is estimated at 26 million tonnes, with the consumption at 22 million tonnes
 Sugarcane Pricing The Central Government fixes the Fair and Remunerative Price (FRP) for sugarcane. Some of the State Governments announce State Advised Prices (SAPs) for sugarcane, generally higher than the FRP.
* Monthly Sugar Quota Ministry of Food and Consumer Affairs, every month give monthly quota for sugar mills to release amount of sugar for sale for that particular month. Mills’ have to sell 10% of the quota to government for PDS (Public Distribution system) known as Levy Quota and rest for sale in the open market as Non Levy Quota.
* Foreign Trade Policy Government controls over import and export of sugar under Open General License (OGL) and Advance License Scheme (ALS).
* By-ProductsGovernment policies for ethanol and other by-products
* Stock holding and Turnover Limits 
* Command Area
* Recovery 
* Acreage
* International Markets 

Apart from demand and supply, there are other major factors which influence and determine the sugar prices. The commodity falls under the purview of the Essential Commodities Act, 1955. Market participants trading in Sugar Futures should track the market by tracking and analyzing demand and supply position including Beginning stock, Production, Imports, Consumption, Exports and Ending stocks and government policies such as Sugarcane pricing, Monthly Levy and Non Levy sugar quota, Stock holding limit, Turnover limit and Export policy.
Sugar futures at NCDEX platform was introduced on July 27, 2004 with contracts for October 2004, November 2004, December 2004 and April 2005. Sugar Futures contract at NCDEX is compulsory delivery contract with trading unit and delivery unit of 10 MT and tick size of Re 1 with Kolhapur as basis centre. The contract also provides for deliveries at the additional delivery centres- Belgaum, Delhi, Kolkata, Pune, Sangli and Solapur.

In the 2009-10 seasons, sugar production fell to 18.9 million tonnes, causing a sudden jump in the prices. Average open interest before delisting of sugar contracts was close to 125000 with average daily trading volume of about 50000 MT. After relisting on December 27, 2011, even with the restrictions imposed by the Government; the contract has witnessed a cumulative daily traded volume of over 20,000 tonnes. The open interest is also fairly high with the average open interest close to 50,000 tonnes, which suggests good depth in participation. Sugar contract is high delivery contract with very less defaults, which suggests interest of cash & carry arbitrage as well. After announcement of removal of sugar stock limit on 22nd November, open interest and trading volume has increased drastically in NCDEX
.

Saturday, September 8, 2012

SUGAR TRADING

Sugar trading

 As history foretells, India had been connected to sugar for a long time. In fact, it is known as the place of origin of sugar. India maintains this reputation of sugar connection by producing the second largest quantity of sugar in the world and also being the largest consumer of sugar. Indian sugar industry is the largest processing industry for agricultural products constituting of both organized and unorganized sectors.

India had been the largest producer of sugar in the world for 7 out of 10 years but now Brazil has taken a lead from India. Indian production from both the sectors sums up to 22 million tons. Indian share in the world’s total production has shown an increasing trend in the past few years and currently India is contributing to around 16%. The country has been indulged in the production of cane sugar rather than beet sugar as India’s tropical weather conditions support sugarcane production. Maharashtra holds the lead in the production of cane and sugar in the country. The consumption level of sugar in India reaches up to 18.5 million tons annually making India the largest consumer of sugar in the world. This demand and consumption level is still showing a rising trend. The government largely controls the demand and supply of sugar in India and the prices fluctuate according to the government releases of sugar.

India had been an exporter of sugar but the export-import policy depends on the production-demand mismatch in the country. The crushing period difference between India and other countries gives an advantageous edge to Indian exports. Exports from India show a rising trend as a result of the upcoming policies of free international trade. The trade figures of India correspond to the mark of 1.5 million tons. The Indian sugar industry has successfully satisfied the domestic demand till now. That is why India no imports of sugar were done during the past few years.
Market Influencing Factors
  • Factors pertaining to the climatic conditions and rainfall
  • Production of sugarcane in the country
  • Sales of sweets including candies and confectioneries
  • Political factors
  • Technological changes resulting in development of new uses of sugar
  • Income of the consumer
Major trading centre of sugar

The major trading centers of sugar throughout the globe are
  • New York (NYBOT)
  • Brazil
  • Australia
  • United States of America
  • Cuba
  • Philippines
  • China
  • Bangladesh
  • Iran
In India, sugar is traded at the following markets
  • Muzzafarnagar
  • Mumbai
  • Delhi
  • Ludhiana
  • Kolkata
  • Hyderabad
  • Chennai
Sugar is traded at the commodity exchanges in India namely 
National Commodity & Derivatives Exchange ltd, Multi Commodity Exchange of India ltd
 National Multi Commodity Exchange of India ltd.


Friday, September 7, 2012

SUGAR MARKET IN INDIA


Indian sugar market

India’s total sugar production in 2010/11 is forecast at 24.7 million tons (including 435,000 tons of khandsari sugar), up 27 % from the 2009/10, on expected improved sugarcane supplies due to higher cane planting and yields. Relatively strong cane prices vis-à-vis last year and also compared to competing food crops (rice, wheat, pulses) during the ongoing 2009/10 will support higher cane acreage. The acreage forecast for 2010/11 is increased by 13 % to 4.8 million hectares. Assuming normal monsoon and subsequent weather condition, yields are expected to improve over last year’s adverse weather impacted crop. Consequently, 2010/11 sugarcane production is forecast higher at 325 million tons compared to 282 million tons in 2009/10.

The sugar production estimate for 2009/10 is revised higher to 19.5 million tons due to lower diversion of cane for production of alternative sweeteners (khandsari and gur) and better than anticipated cane production.
 The mill sugar production for 2009/10 up to March 15, 2010 is estimated at 15.3 million tons (crystal weight basis) compared to 13.3 million tons for the corresponding period of 2008/09.
 As history foretells, India had been connected to sugar for a long time. In fact, it is known as the place of origin of sugar. India maintains this reputation of sugar connection by producing the second largest quantity of sugar in the world and also being the largest consumer of sugar. Indian sugar industry is the largest processing industry for agricultural products constituting of both organized and unorganized sectors.

India had been the largest producer of sugar in the world for 7 out of 10 years but now Brazil has taken a lead from India. Indian production from both the sectors sums up to 22 million tons. Indian share in the world’s total production has shown an increasing trend in the past few years and currently India is contributing to around 16%. The country has been indulged in the production of cane sugar rather than beet sugar as India’s tropical weather conditions support sugarcane production. Maharashtra holds the lead in the production of cane and sugar in the country. The consumption level of sugar in India reaches up to 18.5 million tons annually making India the largest consumer of sugar in the world. This demand and consumption level is still showing a rising trend. The government largely controls the demand and supply of sugar in India and the prices fluctuate according to the government releases of sugar.

India had been an exporter of sugar but the export-import policy depends on the production-demand mismatch in the country. The crushing period difference between India and other countries gives an advantageous edge to Indian exports. Exports from India show a rising trend as a result of the upcoming policies of free international trade. The trade figures of India correspond to the mark of 1.5 million tons. The Indian sugar industry has successfully satisfied the domestic demand till now. That is why India no imports of sugar were done during the past few years.
Market Influencing Factors
  • Factors pertaining to the climatic conditions and rainfall
  • Production of sugarcane in the country
  • Sales of sweets including candies and confectioneries
  • Political factors
  • Technological changes resulting in development of new uses of sugar
  • Income of the consumer
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Thursday, September 6, 2012

SUGAR PRODUCTION IN INDIA


India Sugar Production

India is the second largest producer of sugar in the world after Brazil and is indulged in the production of cane sugar and not beet sugar. It produces approximately 22 million tons of sugar annually. 
The major states that are producing sugarcane in India are: -
  • Maharashtra
  • Uttar Pradesh
  • Karnataka
  • Tamil Nadu
  • Andhra Pradesh
  • Gujarat
These states contribute around 85% sugarcane production of the country. The other important producers of sugar in the country are Assam, Bihar, Gujarat, Haryana, Kerala, Madhya Pradesh, Orissa, Punjab, Rajasthan and West Bengal. The production of sugar in the country highly depends upon the availability of sugarcane. The leading producer of sugar is Maharashtra producing about 6 million tons of sugar followed by Uttar Pradesh and Karnataka. Uttar Pradesh constitutes the maximum area covered and the sugarcane production in the country. Two grades of sugar namely S-30 and M-30 are produced in India; grade S-30 dominating the share in total production.
The production of sugarcane in India has increased during the last ten years and is still on an increasing trend. The productivity of sugarcane in the northern areas of the country is lower than the productivity in southern areas. In India, sugar is grown over 4 million hectares of land 

Wednesday, September 5, 2012

SUGARCANE PRODUCING COUNTRIES



Sugar cane Producing countries

Sugarcane is produced in around 120 countries of the world and the world’s total production of sugar figures around 135 to 145 million tons. Brazil stands at the top regarding the production level followed by India and the European Union. Over 3/4ths of the total sugar produced is consumed domestically in the countries in which it is produced, and the rest is traded around the globe which is often termed as World Sugar. The consumption figures of sugar in the world in 2002-03 were around 135 million tons and these figures have shown an increasing trend during the last few years.


Sugar producing countries
  • Brazil*
  • India*
  • European Union
  • China
  • United States of America
  • Thailand*
  • Australia*
  • Mexico*
  • Cuba*
  • Indonesia
  • Pakistan*

In the list above, the countries marked with * sign produce sugar from sugarcane. The rest of the countries produce it from sugarbeet except US as it is indulged in both cane sugar and beet sugar production. World’s total production of sugar sums up to around 135-145 million tons. The largest producer of sugar in the world is Brazil with an annual production of around 24 million tons, India being the second with about 22 million tons of sugar, European Union standing at the third place with approximately 18.5 million tons. Among other important contributing countries to the world production, China, Thailand and USA are the most important. The production of sugar is concentrated in the hands of these few producing countries that contribute to about 3/4ths of the production. . The area which is cultivated for sugarcane production is dominated by the Asian continent followed by the South American continent.


Tuesday, September 4, 2012

WORLD CULTIVATION OF SUGARCANE


Sugarcane World Cultivation

Sugarcane, the main source of sugar, is said to have originated in New Guinea. This crop spread over rest of the world in the pre-historic times but initially it was consumed raw. The process of sugar production, i.e. by evaporating the cane juice, came from India in around 500BC. In Alexander’s reign, the people from west termed this process as “honey produced without bees”.
For a long time, the rest of the world did not know the process of cane sugar production because it was kept as a secret as it earned them a good amount of profits. Finally Arabs broke this secret and started growing sugarcane in Spain and other parts of Europe and Africa around 7th century AD. It started gaining popularity in the European continent and it was considered a luxurious product at that time. A large amount of sugar was imported from the East as it started giving competition to honey as a sweetening agent. Christopher Columbus was the person who took sugarcane to the new world. This is how the concept of sugar production spread in Europe and with the European invasions in the rest of the world; sugarcane was especially cultivated to extract sugar from it.
Initially, the cane was beaten up to extract the juice but after the invention of a press, the quantity extracted was raised to almost a double. The concept of extracting sugar from the sugarbeet or beetroot came into notice in the eighteenth century in Germany. With other inventions, modern methods of extracting juice from the cane and sugar from the juice were developed.
Sugar is mostly derived from sugarcane and sugarbeet crops and the cultivation pattern of both these crops are quite distinguished from each other. While sugarcane is generally grown in the tropical regions of the world that are featured with hot and humid climate, sugarbeet is cultivated in the temperate areas featuring much cooler climate than tropical areas.
Sugarcane needs a minimum of 8 months of high temperatures and frost-free weather conditions to prosper. Both heavier soil with adequate irrigation and lighter soils with heavy clays and proper drainage are suited for sugarcane cultivation. The level of production of this crop is dependent upon the extent of the rainfall received. It is an annual crop that is planted in the months of February to April and harvested during the months of October to March.
The sugarbeet, on the other hand, is a crop, the roots of which are used to produce sugar. It is sown in the months of March and April and harvested in the months of September to December.
Sugarcane is produced in around 120 countries of the world and the world’s total production of sugar figures around 135 to 145 million tons. Brazil stands at the top regarding the production level followed by India and the European Union. Over 3/4ths of the total sugar produced is consumed domestically in the countries in which it is produced, and the rest is traded around the globe which is often termed as World Sugar. The consumption figures of sugar in the world in 2002-03 were around 135 million tons and these figures have shown an increasing trend during the last few years.

Sugar producing countries
  • Brazil*
  • India*
  • European Union
  • China
  • United States of America
  • Thailand*
  • Australia*
  • Mexico*
  • Cuba*
  • Indonesia
  • Pakistan*

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Monday, September 3, 2012

WORLD MARKET SCENARIO OF SUGAR


World export and import sugar scenario

World sugar production for the 2010/11 marketing year is forecast at 164 million tons, raw value, up 12 million from the revised 2009/10 estimate. Consumption forecast is at a record 158 million tons, up 4 million from a year earlier. Exports forecast are at record 54 million tons, up 3 million; and ending stocks are forecasted at 27 million tons, up 500,000 tons.
 Brazil is the largest producer and exporter of sugar in the World. India is the largest consumer of sugar. Brazil accounts for 23 % of world production, and Asia accounts for 37 %. Brazil accounts for approximately 48 % of World sugar exports with annual exports of 24.3 million tons in 2009/10. Middle East followed by Africa is the largest importers of Sugar.
Sugar or sucrose is a carbohydrate that is derived as an end product of the process called photosynthesis, a process from which plants convert sun’s energy to produce their food. Sugar is used by the plant cells as a source of energy. That is why it naturally occurs in all the fruits and vegetables.
Generally sugar is consumed to add sweet taste to many cuisines and recipes and also for preserving them. It is derived from the major sources of sugar i.e. sugarcane and sugarbeet when the juice of these resources is firstly evaporated and then processed with the help of a process named crystallization. It appears as a white or transparent, crystal shaped substance. The word is taken from the Sanskrit word 'sharkara' which means a sweetener only. 
Sugar is a very important sweetening agent that is widely used and traded throughout the world. It has gained its importance gradually with time and now no cuisines in any culture can consider itself complete without sugar. The main sources from which sugar is extracted are sugarcane (bamboo like grass) and sugarbeet (small tubular plants with white tap root), providing the maximum sugar level than any other crop i.e. 12 to 20% of the dry weight of the plant. Sugar from sugarcane is produced in the warmer regions of the world and sugar from sugarbeet is produced in the cooler areas. The processes of production from these different sources are very much different unlike the final output i.e. refined sugar produced. Sugarcane and sugarbeet contribute in production of sugar in the ratio 3:1 respectively. In fact this ratio is further moving into the direction of dominance of sugarcane in the production process as producing sugar from sugarbeet is relatively expensive.

Sugarcane is produced in around 120 countries of the world and the world’s total production of sugar figures around 135 to 145 million tons. Brazil stands at the top regarding the production level followed by India and the European Union. Over 3/4ths of the total sugar produced is consumed domestically in the countries in which it is produced, and the rest is traded around the globe which is often termed as World Sugar. The consumption figures of sugar in the world in 2002-03 were around 135 million tons and these figures have shown an increasing trend during the last few years.

As most of the sugar producing countries are indulged in self consumption of sugar, the exports of sugar are concentrated among a very few countries. Major sugar exporting countries are: -
  • Brazil
  • European Union
  • Thailand
  • Australia
  • Cuba
  • India
  • United states
  • China
The world exports of sugar hover around 40 million tons and the leading sugar exporting country is Brazil exporting to around 55% of its total produce. Brazil is followed by European Union, Thailand, Australia and Cuba in this list. These top five exporting countries constitutes almost 65% of the world total exports. Australia’s dependency on its sugar exports is much more higher than that of any country as it exports over 75% of its total sugar production.

Unlike exports, imports of sugar are diversified in nature, among more than 100 countries. The sugar imports account to around 38 million tons. The major importers of sugar in the world are: -
  • Russia
  • Indonesia
  • European Union
  • Japan
  • USA
  • Korea
  • Malaysia
  • China
  • Algeria
  • Iran
The leading sugar importing country is Russia with an average of 6 million tons. Indonesia, European Union, Japan, Korea stand on 2nd, 3rd, 4th and 5th place respectively in the context of sugar imports. Being so much of imports taking place throughout the world, there are different sugar import and production policies practiced by different nations to protect their domestic produce from competition. A voluntary body named International Sugar Organization looks upon the trade of world sugar.


Friday, August 17, 2012

WORLD SCENARIO OF COFFEE


World Scenario of Coffee

Coffee plant is a shrub, which is a native to Africa and southern Asia, and whose seeds are used in preparing a sweet smelling drink which itself is known by the name of the plant itself. It is a bushy, evergreen plant is cultivated in the areas that lie in the tropical and semi-tropical belt ranging from 25 degrees north to 25 degrees south of the equator. Winter frost acts as a hindrance in the growth of this shrub. That is why it is generally found at places that are at heights.
Coffee belongs to the genus ‘Coffea’. Its seeds are dried, roasted and then grinded to make coffee powder, which again is used to make coffee drink 
Coffee is a world famous beverage and it is widely drunk in almost every part of the world. The seeds from which this drink is made are actually seeds of the fruit borne by the coffee plant and are called ‘beans’ in trading terms. These coffee beans stand at the 3rd place in the list of legally traded products in the world and are considered to be a very important commodity in terms of trading.
The world’s total production of coffee is around 6 million tons and is leaded by Brazil which has more than 30% share in the world’s total production. Vietnam and Columbia follow Brazil regarding production respectively. The major consuming and importing countries of coffee are
  • United States
  • Canada
  • Japan,
European countries like
  • Germany
  • Italy
  • United kingdom
  • Poland
  • Spain
Other than the above mentioned countries it is also imported by the African countries. The net imports of coffee figures around 4.5 million tons. The export scenario is that the major share of exports in the world is also held by Brazil and is followed by the other leading production countries.
There are around 25 varities of coffee under ‘Coffea’ known to the world. But two of these varieties are very much popular and are widely used throughout the world. These are coffea arabica and coffea canephora (or coffea robusta). Commercially too, only these types are traded in the various commodity markets. Around 70% of the coffee production is constituted by coffea arabica and 25% by coffea robusta.
Coffea arabica is largely produced by brazil and columbia is said to be of best quality. Some of the popular sub-varieties of this type of coffee are Typica, Bourbon, Caturra, Mundo Novo, Tico etc.
Coffea robusta is cultivated in the areas of West and Central Africa, Southeast Asia, South America including Brazil. It is said to be a more economical variety of coffee as compared to the other one as it can be grown on moist lands having low altitudes. And also it is harvested 3-4 times a year that leads to a higher production level and lower cost level.
  • Brazil (33.16% share)
  • Columbia (11.65% share)
  • Vietnam (10.61% share)
  • Indonesia (5.97% share)
  • Mexico (4.59% share)
  • India (4.60% share)
  • Guatemala (rest of the countries have around 28% share)
  • Ethiopia
  • Uganda
  • Honduras
  • Cote d’Ivoire
  • Costa Rica
  • Peru
  • Papua New Guinea
  • Puerto Rico
  • Castalia
The world production of coffee is around 6 million tons annually. Including the above-mentioned countries coffee is produced in 70 countries of the world. The top three producing countries account for over 50% of the total production and hence control the world coffee market. The level of production of these countries is on a declining stage except for Columbia, Uganda and Peru.
Major trading centre
  • New York (Coffee, Sugar and Cocoa Exchange)
  • London
  • Uganda
  • Kenya
  • Brazil (Brazilian Mercantile and Futures Exchange)
  • Singapore (Robusta coffee)