1. 1 Indian Sugar challenges and options Sugar Summit – Pune - 2015

2. 2 Causes of the infamous Indian Sugar cycle Increase in Sugarcane Area Higher Sugar Production Decline in Sugar Prices High Cane Price Arrears Decline in Sugarcane Area Lower Sugar Production Increase in Sugar Price Improved Profitability Sugar Production cycle is no more !

3. 3 Why has the cycle broken?

4. 4 Mills cane price and Revenue sharing MILLS HAD ACTUALLY PERFOMED VERY WELL!! Rangarajan Committee suggests to pay 70:30 ratio to farmers but mills have actually paid more !! mmt

5. 5 India : Long-term outlook India to remain a flat tire but a perpetual importer  Weather to drive  Ethanol to resolve surplus  Cane Price rationalization  Future sugar realization  Refineries to be a weapon

6. 6 Are we repeating the history? IN 2006/07 and 2007/08 the production was surplus over consumption and closing stocks at 11 mmt 2014/15 closing stocks are estimated close to 10 mmt and the prices depressed with surplus production next year and hence only export seems to resolve the problem Continuation of raw sugar export subsidy is very important.

7. 7 mmt Where does Surplus sit in India Available for exports Source: ED&F Man research Currently approximate position

8. 8 Import parity and cost vs what domestic trades 1.Import parity has been negative basis various duty regimes 2.Domestic market has always traded at export parity than trading at import parity

9. 9 Supply & Demand -2014-15 Fig in MMT.HITS & MISSES Year2014/152015/16 Op Stocks79.7 Huge stocks as world market has kept export parity away and Indian sugar did not got opportunity to export Production28.227 Imports00 SUPPLY35.236.7 Dom. Con2525.5This seems even high in low price regime Exports0.53 This 3 mmt has be to exported minimum in 1/516 season Carry Over9.78.2 Stock Use4.63.7

10. 10 Strategy  Promote exports at some discount to match export parity  Increase the realization on balance production up to import parity levels

11. 11  Need revenue sharing model for cane pricing  Need to ensure that surplus is exported to world market at export parity  Ensure that domestic realization is better for balance production.  Support of big players from other states except Maharashtra is required Conclusions !!!!

12. 12 Thank You