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.