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Introduction To Sugar Industry Essay

702 words - 3 pages

Introduction
The world sugar market is experiencing considerable changes in prices. The global sugar stocks, which had been plunging constantly, experienced its lowest in 2010-11 at 165.68 million tonnes. This was due to the drought conditions occuring throughout the world, leading to lower production. However, high demands for sugar has caused a surge in the market prices. World sugar prices dropped in 2012, due to a “bumper crop” around the globe which lead to the decrease in international sugar prices. [1]In 2012 the global production increased by 6% to 171 mn tn from 162 mn tn when comparison to the last year. Increase in production will be seen in 2012-13 majorly due to the rise in ...view middle of the document...

[5] Profits of Indian sugar industry will continue to decelerate due to high cane costs, the lack of ability of the companies to pass on the burden to customers due to strict government policies, lower global sugar prices that result in lower exports.[6] Profits of the industry in 2010 and 2011 stood at Rs.-42,941.7 mn and Rs. -15,416.9 mn respectively.[7]
The research on this industry is conducted to see the effect of the various factors on the profitability of the industry. There is a need to study the performance of the sugar industry and how does it get affected by various factors influencing the industry such as cane costs, energy costs, exports, domestic production, etc.
Research Objective
The objective of the study is to analyze the effects of the various factors on the growth and performance of the Indian sugar industry.
Scope of the study
The study conducted might help in the betterment of the performance of the Indian sugar industry. As it focusses on the factors that influence the performance, it may help in bringing out a...

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