SAKHAR GHOTALA

Congress ka Hath Mahangai ke Sath

Dr Kirit Somaiya BHARATIYA JANATA PARTY

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STORY OF SUGAR SCAM• The sweet sugar has turned sour. Mithi sakkar

kadavi ho gayi. Aam aadmi, who was getting sugar at Rs.14/kg 2 years back, has to pay Rs.50 per kg now.

• Finally, Govt. solution for preventing Diabetes. Sugar out of reach of common man. Drastic drop in Diabetes cases

• Is this manipulation, mismanagement, speculation or scam?

• This is a scam of Rs.5,000 crores. • BJP demands CBI investigation.

Dr. Kirit Somaiya

Story of Sugar Scam

• In January 2010 alone, few big sugar companies shall take out Rs.4,000 crores from the common consumer’s pockets in the sugar import business.

• The recent Rs.10 per kg jump in the sugar price is just due to this manipulative and speculative tactics. Actually, there is no shortage of sugar at present.

• Recently, 200 crore kilograms sugar have been imported by these 9 major sugar companies including Bajaj Hindustan, Simbhaoli Sugars. The cost of raw sugar import is Rs.18 to 20 per kg. After getting it processed/refined, cost of saleable white sugar will be Rs.25 per kg.

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Story of Sugar Scam• These companies are not interested in picking up the stock,

getting it processed and making available in the retail market. It is kept at godowns/SILO storage facilities at Mumbai.

• The cost of import is around $400 per ton to these companies. The manipulation resulted into steep rise in the sugar price to $800 per ton.

• Why the Government has not imported raw sugar at Rs.20 per kg through Govt. agencies - STC and MMTC ?

• What about Mr. Sharad Pawar announcement of Importing Sugar by Govt Agencies in July 2009 ?

• This is a Rs.5,000 crore Sugar Scam. • BJP demands CBI investigation of this Scam.

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STORY OF Sugar ScamSakhar Ghotala chi Gosht

• It is shocking that India exported lacs of tons of rice and sugar in 2009. Sugar was exported at the rate of Rs.12.50 per kg and the rice at just Rs.14 per kg. An Indian, common man has to pay Rs.50 for sugar and Rs.48 for the rice

• Farmers are getting only minimum price. Sugar is sold at Rs.50 per kg. Sugar cane has been sold at Rs.80 to 100 per quintal when the sugar was Rs 17/kg. Wheat has been purchased from the farmers at Rs.9 per kg, sold at Rs.24. For rice, the farmer has been given Rs.10 to Rs.12 per kg and the common man/common consumer is paying Rs.45 per kg.

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Production of Sugar (in lakh tonnes)

Item 2006-07 2007-08 2008-09 2009-10

Production

Production

Production

ProductIon(target)

Sugarcane

3555 3481 2739 3400

Sugar 282 264 147 N.A.

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Production Sugar

• Bumper Sugar Cane production of 3555 lac ton in 2006/07 & 3481 lac ton in 2007/08

• Bumper production & stocks of sugar• Surplus production, availability but prices got double• Farmers got minimum price but Customers are

paying Double• MNC’s , Corporate & Commodity Exchanges are

Beneficiaries

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Production Sugar

• Sugar production in 2006/07 was 282 lac ton & 2007/08 was 264 lac ton, highest in last few years

• India exported 48 lac ton sugar in 2008/09 @ Rs 12.50/kg & start importing the cost of which comes to Rs 25 to Rs 28

• Govt data says sugar was going out & coming in the country at the same time i.e. march 2009

• Country exported 48 lac ton sugar@ Rs 12.50/kg in 2008/09 goes for import in the same year but @ Rs 25/kg & above

• Artificial shortage, Govt manipulative policies, MNC & Corporate, Commodity Exchanges becoming Den of Speculation result into ‘Sugar Price Inflation’

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EXPORT & IMPORT

• It is observed that, in the beginning of 2009, India exported sugar at Rs.12.50 per kg and in the same year import contract was extended at Rs.35 per kg

• In March 2009, at JNPT/Kandla Ports, we had 2 types of sugar shipments – one bringing sugar in – cost of white sugar supposed to be Rs.25 per kg and simultaneously second shipment was taking out sugar, i.e. export of white sugar at Rs.12.50 per kg

• Congress UPA govt created artificial shortage of wheat in 2006-07 & imported cheap quality of wheat @ RS 18/kg. At the same time Indian farmers were paid Rs 8.50/kg

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STORY OF SUGARENOUGH STOCK-AVAILABILITY – YET PRICES TOUCHING SKY

• Story of Sugar is nothing but manipulation by The Sugar Samrat

• Prices have gone up from Rs 22 to Rs 50/kg in just one year. An sugar exporting country is converted into importing country

• India produced 573 lac tons sugar during 2007-10. The country had opening stock of 105 lac tons

• Total availability of sugar for these 3 years was 678 lac tons• Yearly consumption of sugar including consumption by

confectionary and sweet manufacturing industry was 213 to 220 lac tons

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STORY OF SUGARENOUGH STOCK-AVAILABILITY – YET PRICES TOUCHING SKY

• With annual consumption of sugar 200 to 220 lac tons, 146.8 lac tons production of 2008-09 + 105 lac tons opening stock, we had sugar surplus, i.e. opening stock of around 31 lac tons sugar in Diwali/October 2009. This is purely Indian sugar

• Though there was enough sugar available in the Indian market, prices of sugar went up from Rs.17 per kg to Rs.34 per kg in Diwali 2009

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SUGAR – PRODUCTION-CONSUMPTION-AVAILABILITY

(Source: Indian Sugar Manufacturers’ Association) in lakh tonnes)

2003-04 2004-05 2005-06 2006-07 2007-08 (Est)

Opening Stock 116 85 40 36 92

Production 140 127 193 283 263

Imports 4 21 - - -

Total Availability 260 233 233 319 355

Off-take (a) Internal Consumption(b) For Exports

173

2

185

0.04

185

11

210

17

225

48

Closing Stock as on 30th Sept.

85 48.25 36 92 82

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Story of sugar(“for the “sugar year 1/10/2008 to 30/9/2009)

(in lakh tonnes)

OPENING STOCK 100PRODUCTION 147SUGAR AVAILABLE 247LESS CONSUMPTION 223OPENING STOCK ON 1/10/2009 22IMPORTED RAW SUGAR DURING OF SUGAR FACTORIES AS ON 1/10/2009

12.6

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SUGAR AVAILABILITYENOUGH STOCK – YET CONGRESS GOVT. SHOUTED SCARCITY

• Congress Govt created a climate of artificial shortage. This resulted in speculative transactions & scarcity, which resulted in doubling of sugar prices in a year

• In 2009 India had sufficient stock/availability of sugar. 100 lac ton opening stock & production of 147 lac ton. Consumption 223 lac ton. In October 2009 i.e. Dipawali we had 22lac ton opening stock of Indian sugar. Than why the sugar price got Double ?

• Sugar prices in the beginning of 2009 quoted at Rs.22 now quoted at Rs.50/kg in the beginning of 2010

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SUGAR PRICES IN 2010(contd)• The manipulator knowingly ignoring the fact that the

MSP/price paid for sugar cane to Indian farmers is Rs.85 to Rs.100 per ton. The cost price of sugar produced in India cannot be beyond Rs.14 to Rs.18/kg for the year Diwali 2009 to Diwali 2010.

• India has its own sugar of around 200 lac tons – 160 lac tons Indian production of 2010 and the opening stock of around 30-40 lac tons

• As per the Indian Government, around 50 lac tons sugar had been imported prior to October 2009. The cost of the same comes between Rs.22 to Rs.28/kg

• Then why the retail price in India is Rs.50/kg? Is it mismanagement or manipulation?

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PRICE RISE OF SUGAR in Urban India(Source : Parliament reply of 4.12.2009 Price Rs./kg )

City As on 1.10.09 As on 11.01.10

Delhi 32 50

Mumbai 33 45

Kolkata 30 46

Chennai 30 47

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Subsidy on Export of SugarINTERNAL TRANSPORT & FREIGHT CHARGES UNDER RULE 20 A (NEW SCHEME)

(in lakh tonnes)

YEAR ACTUAL EXP.(IN CRORE)

2007-2008 69.92

2008-09 284.51

2009-10 upto 31.10.2009 174.63

TOTAL 529.06

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SUGAR EXPORTExport @ Rs 12.50 & Import @ Rs 38

Period Unit Quantity Value (Rs.) Rs./kg

April 2007 – March 2008

Ton 4684557 54121564 11.55

April 2008 – March 2009

Ton 3332079 44487433 13.35

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Sugar Export Import Scam ? • In march 2009 Indian port/docks had simultaneous

shipments of export & import of sugar. Difference was the price. Export @ Rs 12 to Rs 16 & Import @ Rs 34 to Rs 44.

• Govt paid thousand crores subsidy Rs 1.44/kg to this exporters

• Farmers got the same price of Rs 85/quintal for his sugarcane & consumer paying double rate

• Are the exporting/importing Companies/Multinationals same

• Who are the beneficiaries ? Require Investigation19

Name of the Sugar Company

Price as on

7.1.2010

11.11.2008

Bajaj Hindustan 35 13

Balrampur Chini 143 47

Dhampur Sugar 152 26

Shree Renuka Sugar 243 70

Sir Shadilal Enterprises

176 56

Triveni Engg 115 47

SUGAR COMPANIES SHARE PRICES AT BSE

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Story Food Inflation-Corporates & Multinationals EnjoyEarned Lucrative Profit in Two Years

• Farmer faced disaster & got uprooted in sugar cane price in last four years

• Farmers got minimum price for their crop• Consumers are looted in day light• Companies & MNC minted Money• Share price of Sugar Companies increased by

hundreds of percent in last two year• Many Sugar Companies Share Price have tripled in

last nine months at Stock Exchange

• Is it mismanagement or manipulation?

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