1. Regulation sours sugar output

2. Introduction India was among the world’s big sugar suppliers Until 2 years ago, India sugar production dropped from 26 m tones in 2007-2008 to 15 m tones in 2008-2009 With domestic consumption at more than 23 m tones, India has being forced to import Problem persists with next season production estimate ranging from 14 m to 17 m tones

3. Reasons Farmer shifted to more profitable crop whose government set minimum prices have risen i.e. rice gain 50% more profitable per one acre India’s biggest cane producer, Uttar Pradesh, at the same time shifted production to other crops due to delayed payment resulted from political dispute.

4. Below are the leading sugar producers for 2005-6. These producers accounted for nearly 80% of the global sugar total of 150 million tons in 2005-6. (The international sugar season runs from September to August.) Brazil30 million European Union22 million India 20 million China 10 million United States 7 million Mexico 6 million SADC 5.7 million Australia 5.4 million Thailand 5 million Russia 2.7 million Top Ten Sugar Producers

5. Top Ten Sugar Exporters Below are the leading sugar exporters for 2005-2006. Brazil 17.7 million European Union 8.1 million Australia 4.1 million Thailand 2.6 million SADC 1.6 million Guatemala 1.5 million India 1.4 million Persian Gulf 1.3 million South Africa 1.3 million Cuba 1.2 million

6. Consequence Supply of sugar in India falls World price of sugar rises to the highest level in 28 years (25 cents/pound) Production revival is at least 12-18 months away.

7. Indian Sugar Market International Sugar Market The rest of the world sugar market Partial Equilibrium Analysis Price QQQ Pw P’w

8. Reference Financial Times: Regulation sours sugar output Published: September 11 2009 By: Amy Kazmin in Kalanda, India Available at http://www.ft.com/cms/s/0/1956bbec-9ef5- 11de-8013-00144feabdc0.html?nclick_check=1

9. Thank you

10. By Kantaya Pasuhirannikorn ID 5004640388 Sarinya Budhkwan ID 5004640941