SUGAR: NOT SWEET ANYMORE

Article Abstract:

The Indian sugar industry is passing through a tough phase due to increase in imports of sugar and a fall in acreage under sugar cultivation. Cheaper imports from Pakistan and other nations have weakened domestic prices. Nearly 50 percent of Indian sugar processing units including smaller units with sub-optimal capacities have become sick. Though the Government has raised the import duty on sugar to 20 percent, the duty hike is very less compared to the industry's demand of 40 percent. According to the sugar industry, Pakistan offers 40 percent subsidy to its exporters which makes their sugar cheaper than the Indian sugar. The industry contends that a 40 percent duty would reduce the imports from Pakistan to six lakh tonnes (11.2 lakh tonnes imported till January 1, 1999). The domestic prices of sugar are also declining, as India is likely to record a 20 percent increase in its production to over 150 lakh tonnes during 1998-99 (128.52 lakh tonnes during 1997-98). Total sugar availability in India will be around 225 lakh tonnes compared to demand of 150 lakh tonnes. Increasing sugarcane dues have also resulted in decline in the acreage under cane cultivation by 2.51 lakh hectares during 1997-98 (41.68 hectares in 1997-98). All these factors is likely to affect the margins of domestic sugar producers. (ag)(vr)

Commodity & service prices, Imports, Pakistan, Raw cane sugar, Sugarcane Mills, Raw Cane Sugar & Byproducts, Raw sugar

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THE REAL ECONOMY IN 1997-98: AGRICULTURE

Article Abstract:

It is projected that agricultural production will decline in 1997- 98 with the production index declining by 3.7 percent against an increase of 9.4 percent in 1996-97. It is estimated that total foodgrains production has fallen by 2.6 percent to 194.1 million tonnes in 1997-98 against 199.3 million tonnes in 1996-97. The output of rabi foodgrains is estimated at 90.4 million tonnes while that of kharif foodgrains is 103.7 million tonnes in 1997- 98. The production of rice is estimated to have increased by 2.7 percent to 83.5 million tonnes in 1997-98 against 81.3 million tonnes in 1996-97 while that of wheat has fallen by 4.2 percent to 66.4 million tonnes from 69.3 million tonnes. The production of oilseeds has decreased to 23.7 million tonnes against 25 million tonnes while sugarcane output is expected to reduce to 260.2 million tonnes from 277.3 million tonnes in 1996-97. (khr)

Agriculture, Crop Production, Forecasts, trends, outlooks

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