...end sales quota in sugar industry CHENNAI: Food and agriculture minister Sharad Pawar said on Friday he favoured ending the government's role in fixing sales quota in sugar industry, adding that the government would consider withdrawing controls on the sector after assessing the likely sugar production in 2010-11 crop year. The minister said a decision on decontrolling the sugar industry could be taken if there is good production in the next crop year starting October. At present, the government controls the sugar industry right from fixing the support price of sugarcane and allocating the monthly quota for mills to sale in the open market. "We welcome the minister's statement on decontrol of the sugar market, which was long-awaited," Indian Sugar Mills Association (ISMA) deputy director general M N Rao told a news agency. Sugar industry is heavily regulated, right from cane to sale of sugar. There is a minimum support price for sugarcane and over and above that there is a state advisory price. Sugarcane command area is determined and approved by state governments. Sugar mills can't sell freely in the open market as there are quotas for open sale. "There are multiple spokes in the wheel now. Besides, with nearly 12 to 15 crore people involved with the sugar business, we need to see in what form and shape the decontrol happens. Ideally, total decontrol is the best," K Jayachandra, joint MD of Empee Sugars and Chemicals, told TOI. Pawar acknowledged that sugar sector...
Words: 1252 - Pages: 6
...instruments of trade policy like tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative polices and antidumping policies. We will begin with tariffs. They are taxes levied on imports that effectively raise the cost of imported products relative to domestic products. They provide protection to domestic producers, force consumers to pay more for certain imports, reduce the efficiency of the world economy and the most important one increase government revenues. Secondly subsidies, they are government payments to domestic producers to help them in two ways. First one is to compete against low-cost foreign imports and second one to gain export markets, but they protect inefficient and excess production. Thirdly import quotas, they directly restrict the quantity of some good that may be imported into a country. And...
Words: 838 - Pages: 4
...Philippine Sugar Industry History From the 19th century until 1970s, sugar has been one of the most important agricultural products in the Philippines. Philippines have been one of top exporter of sugar in the world and the sugar has been one of the pillar of the agricultural Philippine Economy. Jose Maria Zabaleta in his paper discusses the Philippines’ comparative advantage in the sugar industry: “Comparative Advantage The middle islands of the Visayas and the northernmost island of Luzon lie in the typhoon belt of the Pacific Ocean, and its eastern seaboard, often visited by as many as twenty hurricanes a year two or three of which are often considered as destructive, is not suitable for maize, many tree crops, and year round agriculture. Sugarcane, however, grows luxuriantly and well, and suffers little from typhoon damage. It is, therefore, a crop of preference not only because its product, sugar, has a long shelf life and is easily transported, but because the farmer is never really in danger of losing his entire harvest because of its resiliency.”(Jose Maria Zabaleta) Sugar started to be commercially produced in the Philippines during the 18th century. Since then the sugar industry flourished to become a major commodity for export. In the 20th century, the greater demand for sugar in the American Market resulted into growth of the industry. (Jose Maria T. Zabaleta) The United States gave preferential treatment to the Philippines by imposing quota for...
Words: 1595 - Pages: 7
...Sugar has long been an essential crop of the Caribbean countries and the news of reform has left the islands scrambling to maintain a viable economy. In order to understand how the islands economies became so dependent on sugar, it must be made clear how sugar became so important, the extent of the Caribbean's dependency on preferential pricing and how the preferences have been reformed. The sugar industry has been a part of the Caribbean since shortly after being discovered and colonized by people of the western world. Its importance can be seen through significant historical changes such as slavery, indentured servitude and finally through independence. The sugar industry creates a significant amount of jobs for the uneducated residents of the Caribbean. According to McDonald (2003) it was estimated in two thousand and three that the industry employed approximately one hundred and twenty-five thousand workers in both direct and indirect employment that otherwise may be unemployed. It served as a tourist attraction and was a major ingredient in the production of Molasses and Rum, both of which generated significant export revenues. Most importantly, sugar exported to the member countries of the European Union generated significant revenues. The European Union (EU) sugar program as it was original implemented in nineteen sixty-eight, served to facilitate competitiveness by compensating intuitional price cuts for sugar with direct income payments. The program consisted of a mixture...
Words: 404 - Pages: 2
...to talk about “What factors really determine the price of sugar in the USA?” based on the Financial Times article “Commodities: A sweet deal”. I divided the presentation in 3 parts. Firstly, I give a short introduction. Secondly, I speak about the determining factors and lastly I give a short summarise about the topic. [Click] 2. Slide: Ok, let’s start with the frame conditions of this topic. Sugar was once a luxury product and the demand for sweets is in our genes. Today, you can get sugar everywhere. [Click] The sugar market is one of the world’s strongest protected and supported market for agricultural products. [Click] The USA is the fifth-largest sugar producer in the world [Click] and the U.S. sugar policy used quotas and restricted imports to balance supply and demand. [Click] The purpose of these restrictions [Click] is the increase of the sugar price in the U.S. market. [Click] The question is “What really influences the sugar price in the USA?” We will see on the next slides. [Click] 3. Slide: On this slide we see on the left side the Price-Quantity-Diagram with the red supply curve and the blue demand curve, [Click] which is extensively inelastic. [Click] That’s means the percentage change in the price is higher than the percentage change in the quantity. A good example of an inelastic demand is the U.S. sugar-market, which is very price sensitive. Ok, let’s look at the supply curve. [Click] If the sugar supply rises, the supply curve shifts to the right side. [Click]...
Words: 550 - Pages: 3
...High Fructose corn syrup in the US and UK High fructose corn syrup, also known as Fructose-Glucose syrup, is a liquid sweetener that was created to act as a substitute for regular sugar in the 1950s, and is now used in almost all processed foods in the United States, and to a lesser degree, the United Kingdom. Since its creation, high fructose corn syrup (HFCS) has been used extensively not only in these two countries, but also around the world. It is an ingredient in almost every single mass-produced beverage and food product, however its extensive use has sparked a lot of controversy regarding HFCS and its possible obesity-causing effects, as well as issues of sustainability and agriculture. High fructose corn syrup was so quickly embraced by food producers due to its sweetness comparable to that of sucrose (regular table sugar), its stability, and ease of application. Another part of HFCS’s appeal was that sugar cane was originally grown in places that were both politically and environmentally unstable, and so any fluctuation in either of those factors meant a variation in the worldwide price of sugar. In 1977 the United States imposed a system of sugar tariffs and quotas which significantly raised the price of imported sugar, so producers sought a cheaper alternative, and high fructose corn syrup was the answer. Initial shipments to the United States food industry started in the late 1960s and since then there have been many advancements in its production which have led...
Words: 3128 - Pages: 13
...companies d. Higher unemployment for domestic steel workers 2. Which of the following refers to a market-sharing pact negotiated by trading partners to moderate the intensity of international competition? a. Orderly marketing agreement b. Local content requirements c. Import quota d. Trigger price mechanism 3. Suppose the United States and Japan enter into a voluntary export agreement in which Japan imposes an export quota on its automakers. The largest share of the export quota’s “revenue effect” would tend to be captured by: a. The U.S. government b. Japanese automakers c. American auto consumers d. American autoworkers 4. Suppose the government grants a subsidy to domestic producers of an import-competing good. The subsidy tends to result in deadweight losses for the domestic economy in the form of the: a. Consumption effect b. Redistribution effect c. Revenue effect d. Protective effect 5. Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies. This is because, unlike domestic subsidies, import tariffs and quotas: a. Permit less efficient home production b. Distort choices for domestic consumers c. Result in higher tax rates for domestic residents d. Redistribute revenue from domestic producers to consumers 6. Suppose the government grants a subsidy to its export firms that permits...
Words: 5681 - Pages: 23
...Şima Mıhlayanlar 20702256 ENG400-13 A proposal to investigate practical and effective solutions to major problems of the over usage of high fructose corn syrup. Introduction Today, it is inevitable to face negative effects of high fructose corn syrup because high fructose corn syrup (HFCS) has replaced cane and beet sugar in processed foods and soft drinks over the past 25 years. When you read the food labels in your kitchen you’ll find that we now consume HFCS in all kinds of processed foods, not just desserts and drinks also in breads, cereals, ketchup and yogurt so you will easily realize that you associate with the devil by consuming devil’s candy. However, despite the alarming damages of HFCS there is a huge demand for HFCS by firms and governments. Profit concerns and governmental issues are the major reasons behind demand but also there are some problems related to consumers. In this proposal it is intended to investigate the problems behind the over usage of HFCS and offer solutions against that danger, select the criteria to evaluate the applicability and efficiency of the proposed solutions and finally introduce the research methodology constituted the basis of my further research. Problem Definition There are some problems caused by people, firms and governments lead us to over use HFCS. The followings are the most crucial problems behind this issue; I. Ignorance People don’t know the difference between corn syrup and high fructose corn syrup....
Words: 1455 - Pages: 6
...Chapter 7 Government Intervention in International Business GOVERNMENT INTERVENTION 1. In a short essay, describe two methods of government intervention. What is the purpose of government intervention in international business? Answer Government intervention is often manifested as protectionism. Protectionism refers to national economic policies designed to restrict free trade and protect domestic industries from foreign competition. Protectionism often leads to two types of intervention: tariffs and nontariff barriers. A tariff is a tax imposed by government on imported products, effectively increasing cost of acquisition for the customer. A nontariff trade barrier, such as a quota, is a government policy, regulation, or procedure that impedes trade through means other than explicit tariffs. Governments intervene in trade and investment to achieve political, social, or economic objectives. Barriers are often applied to benefit specific interest groups, such as domestic firms, industries, and labor unions. A key rationale is to create jobs by protecting industries from foreign competition. Governments may also intervene to support home-grown industries or firms. In various ways, government intervention alters the competitive positions of companies and industries, and the status of citizens. (pp. 195-196; concept; Learning Objective 1; moderate; AACSB: Analytic Skills) RATIONALE FOR GOVERNMENT INTERVENTION 2. In a short essay, explain the four main motives for...
Words: 2623 - Pages: 11
...government is not opposed to decontrol of the sugar sector, provided it does not affect the interest of the farmers and consumers, informed food secretary B C Gupta, in a conference held on Tuesday. "The government is not averse to any decontrol, provided it does not cause difficulty to the farmers," Gupta said. Industry body Indian Sugar Mills Association (ISMA) has been demanding that the government give the industry the freedom to sell sugar in the open market. It also wants the removal of the levy sugar system, under which mills are required to sell 10 per cent of their production to the government at a subsidised rate for distribution through ration shops. Through the monthly release mechanism, the Centre fixes the monthly sugar quota that mills can sell in the open market and ration shops. The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body Confederation of Indian Industries. The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body Confederation of Indian Industries. The industry supplies levy sugar at 60 per cent of the cost of production, resulting in a loss of about Rs 2,500-3,000 crore every year, according to industry body Confederation of Indian Industries. The industry supplies levy sugar at 60 per cent of the cost of production, resulting...
Words: 282 - Pages: 2
...It only takes simple supply-and-demand economics to see that with an excess supply of corn in the marketplace, the price goes down, and with the price lowering, it makes it more appealing to businesses which in turn use corn more in their products. However, corn itself isn’t inherently unhealthy, it’s the product of corn; high fructose corn syrup that is the problem. Due to the cheap and available nature of corn and high fructose corn syrup, a product from corn, it became cheaper for businesses to use high fructose corn syrup instead of actual cane sugar in their products (Pollan). This increase in HFCS usage was also brought on by other governmental decisions such as quotas for domestic sugar production and a high tariff on imported foreign sugar which the government enforced to decrease the usage of sugars since they were deemed “unhealthy” (Pollan). These decisions somewhat backfired since America now consumes higher rates of fructose corn syrup in the 21st century than in any other previous...
Words: 1187 - Pages: 5
...Sugar Cane Today, sugar cane has many industrial uses and is one of the most widely used and cheapest domestic products Sugarcane is a tropical, perennial grass that forms lateral shoots at the base to produce multiple stems, typically three to four meters high and about five centimeters in diameter. Sugar cane probably originated in the island of New Guinea. Its cultivation spread along human migration routes to South-East Asia, India and to Fiji and Hawaii in 500-1100 AD. Sugarcane is the world's largest crop. In 2010, FAO estimates it was cultivated on about 23.8 million hectares, in more than 90 countries, with a worldwide harvest of 1.69 billion tonnes. Brazil was the largest producer of sugar cane in the world. The next three major producers, in decreasing amounts of production, is India, China, and Thailand Sugar is an addictive food, not only in humans but also in dogs and pigs and other animals with simple stomachs. Excessive sugar induces at least one type of cancer and late- onset diabetes. It also 'crowds out' other energy foods. Despite this, sugar is now part of most processed food and drink of every kind in advanced countries, especially the USA. Unites State's one of the biggest sugar cane companies is Unites States Sugar Cane Corporation. It is Headquartered in Clewiston, Florida the company farms more than 180,000 acres in Hendry, Glades, and Palm...
Words: 487 - Pages: 2
...1 President Ronald Reagan's record includes sweeping economic reforms and deep across-the-board tax cuts, market deregulation, and sound monetary policies to contain inflation. His policies resulted in the largest peacetime economic boom in American history and nearly 35 million more jobs. 2 By reducing or eliminating decades-long social programs and significantly increasing defense spending, while at the same time lowering taxes and marginal tax rates, Reagan's approach to handling the economy marked a significant departure from that of many of his predecessor's Keynesian policies. 3 Before the tax cut, the economy was battling high inflation, high Interest rates, and high unemployment. These three issues dropped sharply after the tax cuts. The unemployment rate, which was at 9.7 percent in 1982, began a steady decline, reaching 7.0 percent by 1986 and 5.3 percent when President Reagan left office in January 1989. Inflation-adjusted revenue growth dramatically improved. Over the four years period before 1983, federal income tax revenue reduced at an average rate of 2.8 percent per year, and total government income tax revenue decreased at an annual rate of 2.6 percent. 4 In accordance with Reagan's less-government intervention views, many domestic government programs were cut or experienced periods of reduced funding during his presidency. Tax breaks and increased military spending resulted in an increase of the national budget deficit...
Words: 1222 - Pages: 5
...One of the main issues that I believe is a HUGE problem in this country is sugar. There is sugar in literally everything. Sometimes we don’t even use sugar, we use a product called High-Fructose corn syrup. This is much sweeter than sugar and companies do not need to use much of it. Plus, it’s much cheaper. I would also like to point out the High-Fructose corn syrup is under intense restrictions in Europe. Europe puts a quota on High-Fructose corn syrup so companies cannot use much of it and use more natural sugar. Another reason that American’s are still gaining weight is because we may have cut down of fat but we also cut down on exercise. Back in the 1970’s people would exercise much more. People would walk to work, kids would play in...
Words: 398 - Pages: 2
...Pacific State University EC512 International Economic Development Assignment # 9 By Phattaranit Prabpai Q1. The effects of international trade on a country’s development are often related to four basic economic concepts: efficiency growth, equity and stability Briefly explain what is meant by each of these concepts as it relates to the theory of international trade. The whole economic basis for international trade rests on the fact that countries do differ in their resource endowments, their preferences and technologies, their scale economies, their economic and social institutions, and their capacities for growth and development. Developing countries are no exception to this rule. Some are very populous yet deficient in both natural resources and human skills, at least in large regions of the country. Others are sparsely populated yet endowed with abundant mineral and raw material resources. Still others are small and economically weak, having at present neither adequate human capital nor the material resources on which to base a sustained and largely self-sufficient strategy of economic and social development. A statistical summary of recent LDC trade performance and patterns. There follows a simplified presentation of the basic neoclassical theory of international trade and its effect on efficiency, equity, stability, and growth. We then provide a critique of pure free-trade theories in the light of both historical experience and the contemporary realities...
Words: 3889 - Pages: 16
