Eco Home Assignment On Demand And Supply
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ASSIGNMENT OF TREND, DEMAND AND SUPPLY SHIFTERS OF SUGAR IN INDIA GROUP MEMBERS: MEGHA VISHNOI - 09BS0003106 SWARNIMA DAS - 09BS0002493 BHARTI DIGHE - 09BS0000546
TREND OF SUGAR FROM 2002-07
India is the largest consumer of sugar in the world. Sugar has two types of demand one is derived and direct demand.
Direct demand is from the household sector while derived demand of sugar is from industries using sugar as a byproduct.
Demand for sugar is more or less static. However, supply is affected by cyclicality and seasonality of production. Hence, the prices of sugar have shown great volatility in both domestic and international markets.
DEMANDS SHIFTERS q Export - 4.3 millions tones in yr 2007-08 to 0.5 millions tones in 2008-09. q Consumption - Expected to grow 2007-08 to 2012-13 to grow at a 4.3% and to grow 26 million tones in 201213.
q Per capita consumption - In 2000 was 16.5 kilograms, 2003 it was 18 kilogram, in 2007-08 it was 18.4 kilograms and is expected to rise.
q Population - Population growth in India is one important factor for increase in demand.
q Export subsidies - Central govt. subsidy of Rs1350
and additional state govt.subsidy of Rs1000 in 2007-08.
SUPPLY SHIFTERS q Poor rainfall- Decline in rainfall in crucial month of june-july in year 2004-05 led to decline in supply. q Sugar price - price dropped in 2006-07 and 200708 which led to farmers to switch to alternative crops q Decline in area- Largest decline was 30% in 200809. q Government control- free sale sugar quota in august 2008 it was 0.9 million tones and 1.4 million tones in September 2009 and buffer stock was dismantled. q Import-300,000 tones of import in 2009, taking
supplies to 1.83 million tones.
References www.economictimes.com Crisil
research sugar annual review Karvys commodities research
TREND OF SUGAR FROM 2002-07
India is the largest consumer of sugar in the world. Sugar has two types of demand one is derived and direct demand.
Direct demand is from the household sector while derived demand of sugar is from industries using sugar as a byproduct.
Demand for sugar is more or less static. However, supply is affected by cyclicality and seasonality of production. Hence, the prices of sugar have shown great volatility in both domestic and international markets.
DEMANDS SHIFTERS q Export - 4.3 millions tones in yr 2007-08 to 0.5 millions tones in 2008-09. q Consumption - Expected to grow 2007-08 to 2012-13 to grow at a 4.3% and to grow 26 million tones in 201213.
q Per capita consumption - In 2000 was 16.5 kilograms, 2003 it was 18 kilogram, in 2007-08 it was 18.4 kilograms and is expected to rise.
q Population - Population growth in India is one important factor for increase in demand.
q Export subsidies - Central govt. subsidy of Rs1350
and additional state govt.subsidy of Rs1000 in 2007-08.
SUPPLY SHIFTERS q Poor rainfall- Decline in rainfall in crucial month of june-july in year 2004-05 led to decline in supply. q Sugar price - price dropped in 2006-07 and 200708 which led to farmers to switch to alternative crops q Decline in area- Largest decline was 30% in 200809. q Government control- free sale sugar quota in august 2008 it was 0.9 million tones and 1.4 million tones in September 2009 and buffer stock was dismantled. q Import-300,000 tones of import in 2009, taking
supplies to 1.83 million tones.
References www.economictimes.com Crisil
research sugar annual review Karvys commodities research
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