INDIA IN THE GLOBAL SUGAR MARKET KIRAN WADHWANA DIRECTOR COMDEXINDIA LTD.

I NDIA IN THE G LOBAL S UGAR M ARKET H OW BIG IS I NDIA IN THE G LOBAL S UGAR M ARKET ? H IGH Y EAR E ND S TOCKS ? W HAT CAN INDUSTRY DO TO REDUCE Y EAR E ND S TOCKS AND INCREASE E XPORTS ? C ONCLUSION …

* Estimated Source: PLATTS

Source: PLATTS and ISMA

* estimated

Source: PLATTS and ISMA* estimated

Source: PLATTS

M AJOR R EASONS FOR H IGH Y EAREND S TOCKS & L OW E XPORT V OLUMES H ISTORY OF S HORTAGES M ILLS ALWAYS CARRIED THE STOCKS V ERY L ITTLE HEDGING /F ORWARD SALES – M ILLS IN B RAZIL AND T HAILAND S ELL / HEDGE 30% TO 40% PRODUCTION BEFORE START OF SEASON S HORT T ERM E XPORT P OLICY

file:///.file/id= S ITUATION OF I NDIAN S UGAR I NDUSTRY Mill Owner

W HAT CAN BE DONE TO REDUCE Y EAREND S TOCKS & I NCREASE E XPORT V OLUMES F ORWARD S ALES – M ILLS SHOULD SELL SOME PORTION OF THE SUGAR AT THE START OF THE SEASON I NCREASE H EDGING M OVE FROM BEING F LAT P RICE EXPORTERS TO B ASIS E XPORTERS L ONG T ERM E XPORT P OLICY

NCDEX Prices for March 2016 Sugar M Contract Source: NCDEX

C ONCLUSION W E MUST HAVE A POLICY OF S URPLUS AND NOT DEFICIT AND MOVE TOWARDS AGGRESSIVE EXPORTS THROUGH BASIS SELLING AND A LONG TERM EXPORT POLICY.