29-30 Sep, 2009 - Singapore, SINGAPORE
Goodwood Park Hotel Singapore
Goodwood Park Hotel Singapore
As thousands of farmers in India’s “Sugar Bowl” shifted from planting Sugar to other crops, the price of refined sugar on international markets jumped 80 percent, to hit a 28-year high of 21.55 cents a pound.
In the world’s largest sugar consuming nation, Sugar is a political commodity, and in India policy makers have to walk the line between helping consumers, and farmers, many of whom live below the poverty line.
According to industry insiders, the bulk of India’s sugar problems can be traced back to 2006, when the government banned exports to bring down prices. The ban was very successful, and as prices began to fall, it became evident that farmers had planted too much sugarcane for domestic consumption alone.
The New York Times reported that in 2007-2008, sugar farmers burned their sugar cane in the fields, as there was no interest from sugar millers to purchase their crop. Farmers also started switching to other crops. Despite government efforts to subsidise exports, the scene was set for the current shortage.
The bottom line is that India’s sugar industry regulations are complex and extend beyond international trade. Policies dictate how much sugar each mill can sell each month, set a minimum price paid to farmers, and require factories to sell 10% of their output at below market prices for distribution to the poor. Policy makers have also banned futures trading in the commodity.
While industry officials are pushing to ease government control over sugar, politicians are hesitant to back a policy that could ‘drive up food prices’.
The recent rise in sugar prices have lured some farmers back to sugar cane, but according to recent reports published in Bloomberg, India will not produce enough to satisfy domestic demand until 2010 or later.
At the upcoming 7th World SugarTrade summit, which convenes in Singapore on 29-30 September 2009, a leading Indian sugar industry official shares his views on policy initiatives and market drivers for Sugar in India.
Yatin Wadhwana, MD of French multinational trading house, Sucden India, will offer perspectives on India’s sugar production outlook. Mr. Wadhwana, one of India’s most respected and recognisable sugar industry officials, has been involved in India’s sugar industry as a Miller and a Trader for over 22 years. He has served as a voice for India’s sugar industry, stepping in to offer views to leading news agencies including Reuters, Bloomberg and Forbes.
At the 7th World SugarTrade conference, Mr. Wadhwana will provide insights on the amount of sugar stocks India has left, how much the country will import for 2009/2010, and when the deficit should end.
Mr. Wadhwana will also share his views at a round-table on sugar trading that will put today’s markets in perspective, and offer a vision into the future of global sugar trade.
Those who wish to find out more about the Sugar Industry in India, and its impact on global sugar trade flows, are encouraged to attend 7th World SugarTrade to find out more.
>>REGISTER NOW<< or email Ms. Jaime at jaime@cmtsp.com.sg for more information.
