Pakistan: Government to increase sugarcane support price - 29.09.2020

Lahore: Pakistan’s Punjab government is all set to give relief to cane growers. According to the news report, in the upcoming cane crushing season, the Punjab government is planning increase the sugarcane support price that would help farmers to meet the increased input cost.

The Punjab Sugarcane Board is scheduled to meet on October 5 that will discuss the proposal to hike support price with the stakeholders associated with the sugar sector.

Apart from this, the government continues to take action against the defaulter sugar mills. Recently an FIR was filed against sugar mill for not clearing cane dues.

Iran harvests 60,000 tons of sugar beet in last six months - 29.09.2020

Iran, Tehran: Iran has harvested around 60,000 tons of sugar beet grown over in 1,100 hectares of land and have been sent to the sugar plants, said Peyman Hesadi, the operator of the sugar beet plan of the ministry. According to the news report published in Tehrantimes.com, Advisor to the Agriculture Minister Saeed Saadat said that the ministry is planning to implement the “Cultivation Pattern” that is aimed to improve the agricultural output in the country for the new crop year.

He stated that as per the plan, the unplanned cultivation will be eliminated. Our aim is to ensure 90 per cent food security of the country.
Highlighting the scarcity of the water, he said that out of 125 million tons of agricultural products produced in the country last year, 80 per cent of the food was produced in the agriculture sector.

South Africa: Sezela sugar mill resumes operations - 29.09.2020

Sezela sugar mill has resumed operations and it has come as a relief to cane growers. Ofentse Dijoe, communications manager for the Illovo Sugar attributed this to the hard work and will power of the sugar mill staff.

According to the media reports, the mill is facing a challenge of low-quality sugarcane. Dijoe said, “The mill that has consistently shown efficiencies of 97.8 per cent and mechanical breakdown rates of 3.15 per cent had stopped operations increasing financial distress to the cane farmers.”

the mill had recorded a mechanical efficiency of 99 per cent and a breakdown rate of 1.96 per cent just prior to the week the challenges with the low purity cane began.

Bangladesh aims to make sugar mills profitable by modernising them - 28.09.2020

Bangladesh will not close down the state-owned sugar mills, nor lay off the workers from the mill, said Industries Minister Nurul Majid Mahmud Humayun. “We have instead taken up the work of modernizing the sugar mills to make them profitable,” he said.

Humayun was speaking as a chief guest at a meeting to review the progress of the various projects run by the Ministry of Industry under its Annual Development Program (ADP). He said, “The present government commits to generating job as per the promises made in the election manifesto. We are working on a revival of the sugar mills that are running at losses and ensure to generate employment.”

Pakistan: FIR registered against sugar mill owner for not paying cane dues - 28.09.2020

Jhang, Pakistan: Following the complaint of Pakistan’s Punjab Cane Commissioner, an FIR has been registered with the Satellite Town Police Station against a local sugar mill owner for not clearing the cane arrears. The arrears include the outstanding payments for the last crushing season.

According to police, M/S Shakarganj Sugar Mills, Toba Tek Singh Road, Jhang has not paid total cane dues of around Rs 82,139,250 for the crushing season 2019-20. The mill had closed its operations on March 11, 2020, but the mill has so far not cleared the pending dues.

As per the rule, the mills have to clear the cane payment within 15 days of sugarcane crushing, but many mills in the country failed to apply it.

Egypt aims to become self-sufficient in petroleum products within three years, says Minister - 28.09.2020

Cairo [Egypt], September 28 (ANI/Sputnik): Egypt plans to reach self-sufficiency in petroleum products in 2023, the country’s Minister of Petroleum and Mineral Resources Tarek El Molla has announced.

“Work is being done to reach the goal of achieving full self-sufficiency in Egypt of gasoline and diesel by 2023. The work has been underway since 2016, when the volume of imports reached about 10 million tonnes annually at a cost of $4.5 billion,” El Molla said at the Sunday opening ceremony of the Egyptian Refinery Project in the Mostorod area in Greater Cairo, as quoted by the petroleum ministry. According to El Molla, import rates during 2020 were at 3.5 million tonnes per year, at a cost of $1.5 billion.

The Minister pointed out that there are many factors contributing to gradually achieving self-sufficiency in petroleum products, such as operating new refineries and raising the efficiency of current facilities, rationalising consumption, expanding the national project to convert cars to work on natural gas, and improving the transport network. (ANI/Sputnik)

Philippines: Travel rules set for migrant sugarcane workers - 26.09.2020

Bacolod: Two Negros provinces have come up with the guidelines to be followed by the migratory sugarcane workers (MSWs) amid the coronavirus pandemic. The governors of these two provinces have released these guidelines as the cane crushing season is approaching.

Eugenio Jose Lacson, governor of Negros Occidental and Roel Degamo, governor of Negros Oriental addressed the directive dated September 1 to all planters associations and issued through the two provinces’ Inter-Agency Task Forces on Emerging Infectious Diseases

The authorities have asked the planters to submit the list of MSWs they need for this crop year to work in their fields. They should provide in details, the names of the workers and their Philippine Health Insurance Corp. (PhilHealth) numbers. They should also provide the basic personal details including the place of assignment and since when they are in the province or when they will be entering in the province. The list will be submitted to the Provincial Incident Management Team (PIMT) that will allow the entry of these MSWs into the province depending on the capacity of RT-PCR testing in the province.

The MSWs will have to undergo testing and quarantine after they arrive in the province. Those who will be tested negative would be allowed to continue with work.

Pakistan: Cane Commissioner issues arrest orders against sugar mills owners - 26.09.2020

Lahore, Pakistan: Initiating action against the two sugar millers for not paying cane arrears, Pakistan’s Punjab Cane Commissioner issued arrest orders against them. Both the sugar mills have not paid Rs 395.7 million to cane growers.

The orders have been issued to the deputy commissioners of Okara and Jhang to initiate action against the millers that have not paid dues around Rs 290 million and Rs 105 million respectively for the previous crushing season. The department had earlier issued notices to these mills for clearing dues in time and had warned of legal action in case of violating rules.

Incessant rainfall impacts cane crushing in Fiji - 25.09.2020

Fiji: Sugarcane crushing activities in Fiji’s three sugar mills have been affected due to wet weather. Graham Clark, FSC Chief Executive, stated that the mills are not able to crush fully to their capacity due to incessant rainfall in the region.

According to the local media report, he said, “Due to wet weather, we are not able to procure the cane from the fields and are facing difficulties in crushing with full capacity. We are expecting the weather to clear so we can continue to buildup cane and crush.”

“Heavy rainfall has created problems for us in procuring and continuing harvesting activity. Everything was favourable this year but the rainfall created a problem now.” said a farmer from the Northern Division.

Pakistan: PTI leader’s sugar mills made Rs 200 billion in three years - 25.09.2020

Lahore, Pakistan: Sugar mills associated with Pakistan’s PTI party Jahangir Tareen made Rs 200b in last three years. According to the media report, revealing the information to FIA, he stated that out of the earned money, he has paid Rs 81 billion to the sugarcane farmers. FIA is inquiring about the irregularities in the sugar sector.

Tareen claims he is being investigated for a cash transaction of Rs 2.2 billion. He stated that the amount he is being investigated is not ecen 1 per cent of the money earned by his mills.

He stated that he is being targeted unnecessarily. His mills have not defaulted any loan so far. Tareen said that the enquiry against him should be closed.

Kenya: Farmers urge to lease sugar mills to reputable investors - 25.09.2020

Kenya: Sugarcane farmers have urged the government to lease the state-owned sugar companies to the private investors who are capable of reviving the sugar sector. Farmers from Kisumu and Nandi region said that investors should be ready to pump money to run the factories smoothly and profitably.

The government will be leasing the Muhoroni, Chemelil, Nzoia, Sony and Miwani sugar companies to private investors for 25 years.

“The government should lease the sugar company to the investor who can run the company efficiently and can export sugar competing at global level,” said a farmer based in Nandi.

The farmers expressed their opinion during a meeting organized by Muhoroni MP James Koyoo.

Samuel Bonyo, Chairman, Chemelil Outgrowers Company said, “There should not be a monopoly while leasing the mills. There should be healthy competition to choose efficient investors.”

The farmers expressed that the mills should not be leased out to single investors.

Pakistan: Sugar millers challenge anti-corruption’s action in High Court - 25.09.2020

Lahore, Pakistan: The recent action of the anti-corruption department is being challenged by the 18 sugar mills in the Lahore High Court. The anti-corruption department has initiated action against the sugar mills including the Al-Arabia sugar Mills belonging to Shehbaz family after the action of the National Accountability Bureau (NAB) and Federal Investigation Agency (FIA).

According to the media report, the mills have submitted the application in the court making anti-corruption director-general, Punjab chief secretary and other respondents in the case. They have stated that the anti-corruption is taking action against them for pending dues during 2017 and 2019.

The application further states that the anti-corruption director, Sahiwal region had released an advertisement asking the farmers to come forward with the complaints against the mills for payment of cane bills. Mills have requested the court to direct the department to stop such advertisements and stop harassing them till the case is in the court.

Brazil: Fires in sugarcane fields may impact next year’s sugar season - 24.09.2020

Sao Paulo/New York: According to the cane industry group, Unica, series of fires hitting the cane fields of the centre-south region of Brazil may impact the next year’s sugar season. The group said that there won’t be an impact on sugar production in the current season.

According to the news report published in Reuters, “Antonio de Padua Rodrigues, technical director, Unica said, “The fire has been witnessed at the major areas where cane Unica have been harvested.” The dry weather has increased the incidents of fire in Brazil’s sugarcane growing region.

Pakistan issues another tender to purchase 50,000 tonnes of white sugar - 24.09.2020

Lahore: According to the media report, the Trading Corporation of Pakistan (TCP) has issued another fresh international tender for purchasing 50,000 tonnes of white sugar. It will close on September 30 and sought from worldwide origins. The sugar should arrive in Pakistan by November 10.

The tender has been issued as per the decision taken by the Pakistan government in July to import sugar to meet a domestic sugar shortage.

Nigeria Sugar Master Plan suffers major setback - 23.09.2020

Heavy floods in the country have dampened the Nigeria Sugar Master Plan to revive the sugar project estate in Niger State. Ahmed Waziri, Deputy Director Public Affairs, National Sugar Development Council (NSDC) released a statement citing that the sudden release of water from the Kainji Hydro Power Dam in Niger State due to heavy rainfall and floods massively damaged the sugar investment project worth N60 billion.

The project is run by one of the major companies involved in the integration programme of the Niger Sugar Master Plan. The statement further states that the floods swept the sugar estates, submerged cane fields and damaged the offices and residential buildings.

Latif Busari, Executive Secretary, National Sugar Development Council, said it has come as a major setback to the sugar sector.

Pakistan: 44 sugar mills on government’s radar - 22.09.2020

Lahore, Pakistan: Sugar mills in Pakistan are under government radar for various reason. Now, during the ongoing investigation against the sugar mill owners, it has been unearthed that they owe billions of rupees to the cane growers.

Sugarcane farmers in large number are reaching out to ACE to lodge their complaints. According to the local media report, the data suggests that the 44 sugar mills owe Rs 4 billion to the cane farmers.

DG Gohar Nafees directed all the regional directors to speed up investigation to give justice to the farmers. Sugarcane growers are the worst hit and exploited community.

Oman: Government to introduce 50 per cent excise tax on sweetened drinks - 22.09.2020

Muscat, Oman: Oman government will introduce 50 per cent excise tax on the drinks containing sugar from October 1. Now, the consumers will have to shell out more money for the sweetened drinks.

According to the media reports, Tax Authority has issued the decision in this regard on June 18, which includes products like fruit drinks, energy or sports drinks, canned coffee, tea products and juices.

As per the authority, the beverages containing added sugar or sweetener and are ready to drink will be subject to a 50 per cent excise tax from October 1, 2020. The products using 100 per cent natural fruit and vegetable juices, milk and other dairy products will be excluded from the list.

Fiji: Three sugar mills crushed 964,340 tonnes of cane till September 15 - 21.09.2020

Fiji: The technical issue resulting in the stoppage of sugar mills have affected the mills’ capacity of sugar production.

According to the Fiji Sugar Corporation, the Lautoka mill was stopped for 23 hours due to mechanical problems caused at the front end of the powerhouse of the mill. Outside stops of three hours were directly associated with rain which brought relief after a long dry spell.

The Lautoka mill has crushed more than 30,000 tonnes of cane per week and last week it has crushed 30,138 tonnes of cane. Labasa mill crushed 25,750 tonnes, while Rarawai mill crushed 27,018 tonnes.

The three sugar mills have crushed a total 964,340 tonnes of cane till September 15.

Pakistan: 44 sugar mill owners summoned by Anti-Corruption Establishment - 21.09.2020

Lahore, Pakistan: Initiating the enquiry against the sugar millers defaulting the rules, the Punjab Anti-Corruption Establishment (ACE) has issued summons to 44 sugar mills owners. The provincial anti-graft body took action based on the complaints it received from the sugarcane cultivators. According to the reports, as many as 2507 farmers have complained to the ACE against the sugar mills for violating the rule.

As many as 1,363 farmers have complained that the mills have paid them lower rates than the rates fixed by the government. 641 complainants allege that the mills have not paid their dues and 503 farmers made a complaint of illegal weight deduction.

According to the news report published in The Express Tribune, Gohar Nafees, DG, ACE said, “We are arranging open courts for hearing grievances of the cane growers. We won’t tolerate the exploitation of the farmers at any cost. We will ensure that the farmers get justice and take action against those involved in looting farmers.”

Global Sugar Scenario : In talks with Michael McDougall, Managing Director – Paragon Global Markets, LLC - 21.09.2020

If 2020 had been any close to a normal year, the global sugar industry would have held different possible scenarios sketched across the world currently not leaving experts solving the equation of the aftermath of the coronavirus pandemic.

In a recent interview with ChiniMandi, Mr. Michael McDougall – Managing Director at Paragon Global Markets, LLC, New York, USA shared his views on the global sugar scenario.

Sharing his views on consumption drop and the aftermath of the pandemic and global sugar market dynamics, he said “The initial impact of the pandemic was to cut demand for sugar. This was seen in various ways. Cola sales were hit as 50% of cola sales in the US at least are outside the home. Gas stations, restaurants, bars, etc. The lockdown cut road traffic and stopped restaurant and bar traffic. Even school activity, which for many poor people helps supplement the diet has gone remote. In India, the large holidays and family get-togethers (weddings, etc) were cut. The results of all these limitations was a drop in sugar consumption.

Road traffic has come back fairly quickly but appears to have stalled out and fallen back a bit. Restaurants have come back to some degree, but are still running only partial capacity. Many think that consumption will improve for the coming season as they expect a vaccine to be ready by the end of the year and economic activity will begin to improve even more. However, a word of caution, is that vaccines are not a given and the distribution of the vaccine(s) could take some time, especially globally. I see that India is looking at using the minimally tested Russian vaccine. If there are any unwanted side effects for the vaccines, we could see a big reluctance to take anything so any improvement in the global economy could be limited or at least sluggish. Complicating all this is certain economies are controlling the virus better (like China) and a global recovery will depend on all economies improving.”

“The general drop in sugar consumption globally for the 2019/2020 season is anywhere between 0.20 and 1.6% percent. There has been talk of drops as much as 5% but remember that consumption tends to follow population growth, which normally shows a growth of 1.0%. The consumption increase now expected for the 20/21 is a growth of between 0.4% to as high as 3.62% as shown by the USDA These are just estimates for now as consumption is much harder to determine, than production. “ He further added.

Answering on how he sees the global trade flow emerging from here given the production swing in major producing countries, McDougall said, “The global trade flow has shifted greatly as crude oil prices fell as much as 67% and is currently down 33%. The drop in prices is reflecting the drop in road traffic and therefore demand. This has caused ethanol consumption to fall roughly 18% from March through August. The ethanol parity as a result fell to as low as close to 9.0 cents a pound sugar equivalent. It is currently 10.40 cents, but that is still well below the current sugar level (close of Oct today was 12.62). This has caused the flexible mills in Brazil to increase sugar production substantially. So far sugar production has jumped by 43.76% which is 7.883 MMT above last year. Exports have jumped by even more, some 77.7% to 16.7 MMT, vs 9.4 MMT last year.

There has been a drop in various other countries, like Pakistan, the EU, and we will see a drop in sugar exports out of Pakistan. Indian exports which were aggressive early on at the beginning of the season have slowed substantially. There are questions as to when the new sugar season plan will be announced and their could be a delay in the harvest due to excessive rain. China appears to be restocking as they are with other commodities, and so far Brazil has shipped 2.882 MMT of sugar to China, substantially above last year.”

Being asked for views on the relevance of sugar future contracts with respect to India, McDougall commented, “Indian mills normally sell their sugar flat price, like to Iran for example. Futures are only needed if pricing of sales are done on a differential basis. A differential basis means the sales or purchase price is determined by the price level of the futures market and gives mills or consumers potentially more flexibility if they so desire. One can also use options on futures as well to give even more flexibility.

Brazilian mills are using futures extensively as they lock in a sugar price and forward markets as they lock in the currency. This way, with a weaker Real, the mills are already locking in positive margins for next years 2021, and to a lesser degree, 2022 and even 2023. Indian mills can’t do this as they are dependent on Government policy one year at a time, and in fact policy can change during the year.

The other advantage Brazilian mill have is that they can legally open their own futures account and remit money outside the country with no restrictions. In India, free movement of foreign exchange is not permitted for even hedging purposes.”

France: Sugar group fined for late payments - 19.09.2020

Paris: French ethanol and sugar producer Tereos has been fined for late payments to suppliers. According to the filing published by state watchdog, 390,00 Euros penalty has been imposed.

The world’s second-largest sugar producer by volume, Tereos is grappling with the financial losses due to the low price of sugar since the end of European sugar quotas in 2017. This has increased the debt levels of the company.

According to the news report published by Reuters, the group in March had asked the suppliers to reduce prices to help it to sustain during difficult economic circumstances.

The penalty has been published on the website of Directorate-General for Competition, Consumption and Fraud Prevention (DGCCRF), France which is authorized to issue fines.

Pakistan: Government asks input of sugar millers to amend Sugar Factories Control Act - 18.09.2020

Lahore, Pakistan: Pakistan’s Punjab government has sought the inputs from sugar millers regarding the amendment of Sugar Factories Control Act, 1950.

Muhammad Zaman Wattoo, Sugarcane Commissioner, has written to the Pakistan Sugar Mills Association chairman and invited all the millers to submit their opinion regarding the amendment at his office.

The major amendments include the punishment for delaying in cane payment to the sugarcane growers and non-payment of the interest on the pending dues. The government also plans to include jail terms for failing to obey the laws set by the government.

As per the existing law, in the existing law, the cane commissioner can impose a fine on non-depositing or delayed depositing of the cess, 50 per cent of which is levied on the cane seller and the mills have to give the matching amount to be deposited with the treasury in monthly instalments.

Kenya: Sugarcane growers raise question over Mumias Sugar performance - 18.09.2020

Sugarcane growers have raised question over functioning of the receiver-manager appointed by the Kenya Commercial Bank (KCB) to revive the Mumias Sugar Company. They claim receiver-manager has done little to revive the sugar mill.

KCB had appointed Ponangipalli Venkata Ramana Rao to commence sugar milling operations. According to the media report, he has been asked to publish a report regarding the revenue he has generated and the debts settled since he took over in September 2019.

Ayub Savula, Lugari MP said, that Rao should come up with a report about what he has done since he took charge. Mumias Sugar is an important factory for us and we want its revival. If the receiver manager is not able to change the situation, then he should be prepared to pack and go.”

Guyana Sugar Corporation gets new CEO - 18.09.2020

Financial analyst Sasenarine Singh has been appointed as new Chief Executive Officer (CEO) of the Guyana Sugar Corporation (GuySuCo) from September 14.

Zulfikar Mustapha, Agricultural minister made the announcement of appointment on Thursday. Singh will replace Harold Davis Jr, who has been CEO of GuySuCo since August 2018.

This post is one of the most critical for President Irfaan Ali’s Administration as the government want to revive the defunct sugar industry.

Pakistan: Government to amend Sugar Factories Control Act - 17.09.2020

Peshawar, Pakistan: The Khyber Pakhtunkhwa (KP) government has decided to make changes in the Sugar Factories Control Act 1950 by amending some provisions.

According to a media report, the amendments will include the increase in the fine on the sugar mills from Rs 10,000 to Rs 100,000 and it also aims to resolve the problems of cane growers during the crushing season. The government also will amend the act to ensure that the farmers will get their arrears in time. The amendments would be tabled before the provincial cabinet meeting soon.

Prime Minister Imran Khan had in July ordered the government agencies to crack the whip on the sugar mafia after the report of the sugar inquiry commission stated that the sugar barons were responsible for the hike in sugar prices.

France: Ministry forecast low sugar beet production - 17.09.2020

Paris: France is likely to witness lower sugar beet production this season due to unfavourable weather condition.

According to the local media report, in the first projection for this year’s sugar beet harvest, the ministry estimated that the sugar beet output would be 32.2 million tonnes, down 15 per cent from 38.0 million tonnes in 2019. As per report this year the sugar beet output is lowered due to drought and jaundice. It is also likely to impact the sugar production in the country.

Ukraine’s sugar production may fall by 15 per cent - 17.09.2020

Ukraine has commenced sugar season for this season from September 5 and the country has produced 8,000 tonnes of sugar till September 14. Total 33 sugar factories are expected to operate this season.

As per the report of Ukrtsukor National Association of Sugar Producers, which is available on its website, three sugar mills were operating in the country that have produced sugar by processing 80,900 tonnes of sugar beet till date.

The sugar production in Ukraine for 2020 is projected at 1.2-1.3 million tonnes which is 15 per cent less as compared with the previous season.

London delivery for October contract largest in around 20 years : Paragon Global Markets, LLC. - 17.09.2020

According to reports by Paragon Global Markets, LLC. The London delivery was the largest to be delivered against the October contract since at least 2000. Wilmar took the entire delivery of 345,700 tons. However, the deliverers added up to 345,400, so there could have been a problem with 6 lots which will have to be resolved.

The deliverers were :
Sucden delivers 122,400 mt : 85,350 mt NE and 37,050 mt Kakinada
MAN delivers 128,000 mt : 100 k mt Kakinada and 28 k mt Suape
LDC delivers 70,000 mt: 30 k mt CS, 15k mt NE and 25k mt Kakinada
So, some 62,150 tons was Indian origin, the rest being Brazilian

In the last two contract expiries, it was witnessed that Wilmar delivered Indian sugar, and now they are taking. Commenting on whether this indicates that Indian sugar will become scarce, even though a new export season will supposedly be open; Micheal McDougall, Managing Director at Paragon Global Markets said, “The price level of $351 per ton could be obtainable for perhaps old crop low quality whites, but not new crop, especially if the Government raises its price on retail sugar as is desired (by the mills) We still don’t know how they are going to resolve the subsidy, given they still have not paid most of last year’s.”

BSEC suspends share trading of Zeal Bangla Sugar Mills - 16.09.2020

Dhaka, Bangladesh: The Bangladesh Securities and Exchange Commission (BSEC) halted the trading of shares of Zeal Bangla Sugar Mills till further notice after the exchange detected unusual transactions and price movements.

The company listed in 1988 witnessed a hike in stock price from Tk 38 to Tk 210 in one and a half months. The company’s stock was flat for the last two years trading between Tk 35 to Tk 45, suggests the data from Dhaka Stock Exchange.

According to the news report published in Thedailystar.net, a top official of the stock market regulator on the condition of anonymity said, “The low paid-up capital of the company has made it a target of gamblers who manipulate the trading.”

Guyana: Government assures to revive closed sugar estates - 16.09.2020

Member of Parliament Seepaul Narine assured that the government will reopen the closed sugar estates soon. Speaking before the National Assembly, Naraine said that the partnership of National Unity + Alliance for Change (APNU+AFC) coalition has purposefully destroyed the sugar industry.

He said, “There is no reasonable explanation over the coalition’s attitude towards the sugar industry.”

Earlier Guyana president Irfaan Ali had stated, “Our government is committed to the betterment of the sugar industry and will soon implement a comprehensive strategy regarding the same. The survival of the sugar industry depends on the intervention of the government and we will take up the necessary steps for the revival of the sugar industry in the country.”

Kenya National Highways to begin construction works on 63-kilometre sugar belt road from October - 16.09.2020

The Kenya National Highways (KeNHA) Authority will take up the construction of a 63-km long road in the sugar belt connecting Kisumu, Nandi and Kericho counties as Treasury approved its financing.

The authority will spend Sh4.9 billion to construct the Kisumu – Chemelil – Muhoroni road and is expected to open up the region that was largely closed out for decades. According to the media report, Peter Mundia, Director-General KeHNA said the work is expected to start in October. This will ultimately improve trade in western region and beyond the border to other East African nations.

European Union may witness low sugar output due to pest attack - 16.09.2020

Paris: The sugarcane fields in the European Union have been devastated by the pests and dry weather which would reduce the sugar output this year. Due to which they may have to rely on sugar import.

According to the French growers’ group CGB estimate, the sugar production is likely to dip to 16.1 million tonnes this year as against 17 million in 2019 in the EU and Britain. It is mainly due to lower sugar beet output in top producer France.

As per news agency Reuters, Timothe Masson, CGB analyst said, “In France, the yield is likely to fall by 15 per cent mainly because jaundice transmitted by aphids ravaged fields across the country.”

Pakistan: CCP raids PSMA’s Lahore and Islamabad offices - 15.09.2020

Islamabad, Pakistan: The officials of the Competition Commission of Pakistan (CCP) carried out search and inspection at two offices of Pakistan Sugar Mills Association (PSMA) located at Lahore and Islamabad. The action was taken as a part of their drive to ensure that the Competition Act, 2010 is not violated by the sugar industry.

According to the news report published in Dawn.com, CCP received the indications related to anti-competitive activities of PSMA. It included collective stoppage of crushing in season 2019-20, collective rise in prices of sugar, and refusal to supply sugar to Utility Store Corporation (USC).

The officials of CCP said that as per the rule the members of associations are not allowed to share sensitive commercial information among them that may affect the business activities related to sugar trade in the country.

Trading Corporation of Bangladesh starts selling sugar at subsidised rates - 15.09.2020

To restrict the price hike, the state-owned Trading Corporation of Bangladesh (TCB) has started providing sugar at subsidized rates across the country.

The commerce ministry took a decision to sell sugar among the other three essential commodities including onion to relieve the poor from the increased prices of sugar and other commodities in the market.

According to the media report, TCB started selling sugar, soya bean oil and red lentil at 275 spots in 62 districts of the country. The price of sugar has been fixed at Tk 50 per kg.

At the initial level, the TCB started selling sugar at 40 spots in Dhaka city and 10 spots in Chattogram city. Humayum Kabir, spokesperson, TCB said that the open market sales would continue till October 1.

Myanmar: Sugar surplus affects domestic price - 14.09.2020

Myanmar is sitting with surplus sugar, which has affected the domestic sugar prices. The sugar, which was meant for export, has remained in the country leading to the sugar prices in the country at a 10-year low.

U Win Htay, Vice-Chair of Myanmar Sugar and Sugarcane Product Entrepreneurs Association said, “The excess sugar in the market has reduced the sugar prices. The farmers are reducing the area under sugarcane cultivation as they are not getting good returns.”

According to the media reports, the country may have a surplus sugar stock of 150,000 tonnes to 200,000 tonnes. The Covid-19 has resulted in the lowering of sugar sale as consumption has been reduced.

Pakistan: NAB to investigate misuse of huge subsidies by sugar mills owners and others - 14.09.2020

Islamabad: The National Accountability Bureau (NAB), prime anti-graft body of Pakistan, has initiated an investigation regarding misuse of subsidies by sugar mills owners and formed a combined investigation team (CIT) for the same.

According to the local media report, NAB took the decision on Friday in a meeting that also made a detailed review of the report of a commission of inquiry formed in March this year to probe into a sudden surge in sugar prices in January.

The commission had in its preliminary report stated that the sugar mills owned by politicians including Asif Ali Zardari of PPP, Shehbaz Sharif of PML-N, Jahangir Tareen and Kusro Bakhtiar of PTI and Moonis Elahi of PML-Q were the major beneficiaries of the crisis.

The commission later released a forensic report on May 21 stating that these sugar millers have earned illegal profits worth billions of rupees through this. Some sugar millers challenged the report in court and the government referred the case to the NAB to investigate misappropriation in subsidies given to sugar mills.

Pakistan issues fresh tender to purchase 100,000 tonnes of sugar - 12.09.2020

Lahore, Pakistan: Pakistan has issued a fresh tender to purchase 100,000 tonnes of white sugar. According to the media reports, the tender issued by the Trading Corporation of Pakistan would close on September 15.

Pakistan has sought sugar from the sellers throughout the world. This is the third tender the country has floated after the previous tender for 100,000 tonnes of sugar that closed on September 8.

After facing a shortage of sugar to meet domestic needs, Pakistan had on July 28 decided to import 300,000 tonnes of sugar.

Fiji Sugar Corporation applauds improvement in TCTS ratio - 11.09.2020

Fiji: Sugar mills from Fiji continue to produce sugar by running with their full efficiency. The Labasa sugar mill has produced 3,415 tonnes of sugar by crushing 31,000 tonnes of sugarcane last week. It is above the Rarawai and Lautoka mills.

Mill also registered improvement to the TCTS (tonnes cane to tonnes sugar) ration. Fiji Sugar Corporation (FSC) applauded the development of TCTS ratio of 9:1.

Pakistan launches programme to increase sugarcane yield - 11.09.2020

Faisalabad: The agriculture department of Pakistan has launched a national programme to increase the sugarcane yield. The programme has been launched under the PM’s agriculture emergency programme.

Punjab government would provide assistance of Rs 5,000 per acre to the farmers who would cultivate cane in September, said Director Agriculture Ch Abdul Hameed. The subsidy would be provided to farmers having 5 acre of land.

According to the local media report, the interested applicant has to register with the agriculture department and the applications would be available from September 10 at the office of the Assistant Director Agriculture (Extension) at Tehsil level.

Russia has enough stocks to cater domestic needs despite estimated drop in sugar output - 11.09.2020

Moscow: According to IKAR, a leading agriculture consultancy, Russia has enough stock of sugar to cater to domestic needs and keep exports going despite lower output in the 2020/21 season.

Reducing its reliance on imports, Russia has doubled its sugar production in a decade. As per the news report published in Reuters, due to weak domestic sugar prices and lower profits, farmers reduced their sugar beet sowing area by 18 per cent.

IKAR has cut Russia’s sugar output for season 2020-21 to 5.0-5.4 million tonnes from 5.6-6 million tonnes. Russia is carrying enough sugar stockpile from the last five years.

Global Sugar Scenario : In talks with Leder Vianney Batista, a Brazilian lawyer of Agribusiness & International Commodities Sales - 11.09.2020

The Covid-19 pandemic has left no stone unturned in engulfing the global economy. Every industry that has hundreds of issues across the globe would agree no less on this. Market players have been striving to navigate a rebound, however no significant change has been witnessed so far. The global sugar industry is in a wait and watch mode and is no lesser awaiting a jump back.

Speaking to ChiniMandi News in an exclusive interview with ChiniMandi News, Mr. Leder Vianney Batista, a Brazilian lawyer of agribusiness, international contracts and international commodities sales (mainly raw and refined sugar) shared his views on the global scenario of the sugar industry.

Sharing his views on the post-covid effects in the global sugar and ethanol market and how the global sugar and ethanol prices may move in the 2020-2021 season he said, “The pandemic has hit the ethanol market a lot . The isolation and social distance measures caused a drastic drop in ethanol consumption. Force majeure was declared on purchase contracts of ethanol by many biofuel giants like Raízen here in Brazil, or even the closing of plants by Valero Energy in the USA, revealed the severity of that moment.

Sugar in global terms was also affected by Covid 19, which affected the balance of supply and demand.Consumption at home did not compensate for what was demanded at concerts, sporting events, restaurants, bars, etc. But I believe that with the resumption of economic activity and the end of isolation measures all over the world, ethanol consumption tends to increase again.

Despite the pandemic coup, biofuels it’s the perfect weapon to face the global challenges for environmental sustainability. The greatest oil and energy trader, Marc Rich, said in the past decade that the future it’s renewable energies. It will be more expensive to produce oil and more expensive prices will motivate innovation in the renewable energy sector and prices will motivate peoples to use other fuels.

Regarding sugar the reasoning is almost the same. People will not stay at home forever. On the other hand, the vaccine against Covid 19 is already a reality. The resumption of economic activities may also affect sugar consumption positively. Bars, restaurants and maybe the return of the concerts, events, etc. may increase the demand. Although greater growth is expected due to the resumption of ethanol consumption, it is worth noting that this year the world oil market has undergone enormous turbulences.

During the pandemic, the price war between Russia and Saudi Arabia broke out. The oil price strongly influences ethanol prices. Ethanol still suffered this additional blow.

Countries like Brazil, where I am living, in 2019 ethanol accounted for almost 50% of the fuel used by the fleet of passenger cars and light cargo vehicles (Otto cycle – in equivalent gasoline). Considering the flex engine technology where the consumer can choose between ethanol and gasoline, you can imagine the impact of oil prices.

But oil recovered the price on the world Market. The oil Brent floating around $ 40 and $ 45 per barrel in the past few months has helped ethanol a lot. My prospects are that ethanol will soon return to better prices in the coming months and 2021.

Regarding sugar, everything will depend on the production and export policy of the major global producing players. I will talk about some of them. Brazil is the world’s largest producer and the country whose government least intervenes in price formation. Market forces are a determining factor. Many plants in Brazil, facing the problems of the ethanol market described above, were able to change its production to sugar. There was a noticeable increase in sweetener production. Up to now, a 40% production increase is estimated compared to the same period last year. On the other hand, the devaluation of the Real against the Dollar stimulated Brazilian exports. Many mills in Brazil have already set prices for the next harvest and have committed their cane to a production with more sugar.

Another major global player, India, it’s always a surprise factor. There is a lot of Government intervention in the sugar sector. There are signs that the government will again subsidize exports. On the other hand, Indian mills were designed to produce only sugar. There is not the flexibility that exists in Brazil to switch to choose the production (sugar or ethanol) according to the conveniences of the moment. More robust ethanol production in India is still a long-term dream. So I think that India can surprise and impact sugar prices in international markets, always. It all depends on the dose of government intervention at the moment.

New York market ( sugar #11, raw sugar ) in the face of such a scenario, stagnated around US $ 11 and 13 c/ lp.

Finally, it is important to highlight the drought that hit another important producer and exporter that is Thailand. The drought practically melted half of that country’s cane fields. For the 2020/2021 harvest, there are forecasts that Thai sugar production will fall to 7.5 million tons. Most of the sugar exported by Thailand is refined. And the London market (London white #5 – white sugar ) during this year showed a much higher volatility than the NY market.

Being asked on his views on the impact on investments in the sugar and ethanol sector and whether he sees crude -oil prices leading to ethanol demand destruction or construction. Batista answered, “As I said just above, Oil still influences the ethanol price. Come on! We are living in an economy still based on oil. It’s gold black! With the resumption of economic activities in the world coming in the next months, the trend is the price of oil to return to the level before COVID 19. Saudi Arabia and Russia have no interest continuing to fight to sell cheaper oil at time of economic resumption. China will also grow next year. They need energy like oil to move their economy, even in a trade war with the USA.”

I think that an increase in the price of oil may help ethanol to recover demand. Ethanol investments will grow again.

Speaking on the global sugar exports with special emphasis on the major market players he commented, “As I mentioned above, Brazil increased its sugar production, because COVID 19 and the price war between Russia and Saudi Arabia had a negative impact on the ethanol sector. Sugar exports also increased. Until August this year, Brazil exported 17.9 million tons. It is estimated that Brazil will export in the 2020/21 season around 25 million tons this year.

India, another heavy player in the sector, was favored this year by the climate. Lack of water will not be a problem for cane fields this year. The forecast for the 2020/21 season it’s 32 million tonnes of sugar. Thailand is experiencing its internal drought drama and sugar production will drop to some 7.5 million this year. This will significantly affect exports. Let’s see how the market will react to the production and export of these main world players.

Sharing an opinion on whether there is a need in India for sugar futures contracts Batista said, “India, it’s an important producer of sugar and other commodities, should always stimulate the future market. The futures market provides better risk management. In Brazil, for example, there are various farmers and industries that use the futures market as a hedge. Then, they can obtain advantages and resources from financial institutions at
lower interest rates.”

“To fund managers it’s a good profitability option. The future market also helps in the future perception of a product’s prices. This helps companies in their strategic planning. The futures market is a useful tool for producers, cooperatives, exporters and financial agents.” He added.

Brazil’s Raizen may acquire Dreyfus Sugar Unit - 10.09.2020

Raizen Energia SA, biggest sugar producer in Brazil, may acquire Louis Dreyfus Holding BV’s local unit.

According to the news report published in Bloombergquint.com, through the deal, Louis Dreyfus may swap its Biosev SA sugar subsidiary in return over the minor stake in Raizen. The share of Biosev rose to 25 per cent in Sao Paulo as a reaction to the news. Raizen and Louis Dreyfus declined to comment on this

Cane growers call for Zimbabwe sugar industry reforms - 10.09.2020

Harare, Zimbabwe: Sugarcane farmers from Zimbabwe have urged the government to reform the sugar sector by ending the monopoly of Tongaat Hullets Zimbabwe.

The farmers also want to change the existing revenue sharing formula between sugarcane growers and millers.

Farai Mutamba, spokesperson, one of the farmers’ groups said, “We are facing the commercial issues with the Tongaat that are troubling us. The revenue sharing ratio is not viable. We want to change outdated laws.”

Sekai Nzena, Industry and Commerce Minister said, “We will initiate dialogue between Sugarcane farmers and Tongaat and resolve the issue. We also want to ensure that consumers get sugar at affordable rates.”

Europe may have to rely on sugar imports - 09.09.2020

European Union may have to rely on the sugar imports as the local farmers are turning away from the sugar beet cultivation. According to the media report, as ample global supply kept prices low therefore growers reduced plantings in recent seasons. Along with this the poor weather and the crop disease have affected the crop productivity.

According to the news report published in Bloombergquint.com, adviser Agritel estimates that the farmers have reduced the cultivation by 2 per cent and production is expected to drop by by 7 per cent. Francois Thaury, an analyst at Paris-based Agritel said, “The sugar beet cultivation is not yielding much profit due to competitive prices of sugar in the global market and farmers are diverting from the sugar beet cultivation to other crops”

ISO expects white sugar export availability in global sugar market to decline amid increasing exports from India - 09.09.2020

The impact of the coronavirus pandemic has been exhibiting its shades in various manners like drop in demand of sugar, consumption of sugar leaving trade flows nowhere unaffected too. The entire industry has staring eyes on how the global sugar market would take shape.

In conversation with ChiniMandi News, Mr. Jose Orive – Executive Director at International Sugar Organisation shared his views on the global sugar scenario.

Sharing his views on the post-covid effects in the global sugar market. He said, “Our fundamental view of the global supply/demand situation has changed following the inclusion of the impact of Covid-19 into national consumption figures, a reduction in underlying sugar consumption growth and higher sugar output in Brazil in recent months.

Global Deficit:
Each of the above factors has reduced the deficit by around 3 mln tonnes, with the current balance showing a statistical global deficit (the difference between world consumption and production) of 0.136 mln tonnes, down from 9.298 mln tonnes in May, albeit with a 2.1 mln tonne Covid-19 impact on consumption.

The global balance has consequently moved from being the biggest deficit in 11 years to neutral. For the 2020/21 balance our first estimates indicate a deficit of 0.724 mln tonnes. A higher allocation towards sugar production in Brazil is a significant factor in the lower projected deficit for both 2019/20 and 2020/21, alongside a 2.7 mln tonnes reduction in sugar consumption in a range of countries, as part of a major review of historic consumption growth figures in recent years. This review points to static annual changes as far back as 2015/16.

World Sugar Production:
The revised forecast puts world production at 169.579 mln tonnes, up 2.781 mln tonnes from our May estimate, but down 4.457 mln tonnes or 2.5% on the previous season. World sugar supply has been shaped by the addition of 2.997 mln tonnes to our Brazil production estimate, to bring the year-on-year increase to 8.364 mln tonnes. While this change has helped to shift the deficit to near zero, the flexibility in global supply through the ethanol parity is seemingly exhausted. With variations in the outlook for the other major producer, India, supporting the 2020/21 balance, the dominance of these two countries is at a 10-year high in terms of their share of production.

World Sugar Consumption:
World consumption in 2019/20 is expected to fall by 0.968 mln tonnes, or 0.53% from the previous season, to 169.715 mln tonnes. However, this change does not reveal the full extent of the revision, as 2018/19 consumption was lowered by 3.097 mln tonnes from our May estimate, following lower estimates for the ISO Sugar Yearbook from many countries. The 2019/20 estimate is a combination of modest consumption growth together with a 2.723 mln tonne allowance for the impact of the Covid-19 lockdown. Meanwhile, the consumption estimate for 2020/21 stands at 174.186 mln tonnes, which is a 4.261 mln tonne increase on the previous season, or around 2.436 mln tonnes above the 2019/20 figure net of the Covid-19 figure. This implies an increase of 1.97% over a two-year period from the 2018/19 consumption estimate of 170.823 mln tonnes. This is an annual growth rate of less than 1% for global consumption.”

Speaking on the global sugar prices and trade flow Orive said, “The US Nominal Broad Dollar Index has weakened for the third consecutive month, highlighting the impact of the coronavirus over the US economy. The BRL depreciated to a record low in May nearly breaching the BRL6.00 per USD mark. Meanwhile, broad USD weakness has seen the EUR appreciate nearly 8% between May and mid-August. Domestic Market and Prices World market prices rose 8% between May and July. However, due to supply and demand particularities, domestic prices in markets monitored by the ISO saw mixed results with increases observed in Brazil, the EU, India, and Russia, and decreases in China. Commodity Prices After a collapse in oil prices in April, world crude oil prices have regained some lost ground, with Brent crude oil averaging USD43/barrel in July. The lifting of lockdown measures around the world and rebounding private sectors in Asia, the US and Europe have bolstered oil consumption. According to the World Bank, agricultural commodity prices also rose, but by a modest 3%. The weaker USD has been broadly supportive of commodity prices.

Raw sugar export availability is expected to total 36.410 mln tonnes in 2019/20, an increase of over 4 mln tonnes compared to the 2018/19 total of 32.236 mln tonnes, while the raw sugar total for 2020/21 has been estimated at 36.245 mln tonnes. The huge increase in the raw sugar balance can be found in Brazil (+5.675 mln tonnes), Australia (+795,000 tonnes) and India (+300,000 tonnes) while lower availability from Thailand (-1.879 mln tonnes) and Mexico (-665,000 tonnes) is also included. Meanwhile, the 2020/21 outlook sees Brazil exports rising further to 23 mln tonnes (+2.2 mln tonnes) while much-reduced Thai raws availability of 1.5 mln tonnes (-2.7 mln tonnes) is also a feature. Import demand for raw sugar is projected to rise by 3.380 mln tonnes in 2019/20. Demand from China is expected to increase by 1.7 mln tonnes while shipments to refinery destinations, such as India, Bangladesh, Saudi Arabia, Nigeria, and Algeria have all added to import volumes. The EU, incorporating the UK, is also expected to increase import volumes. For 2020/21, the make-up of import flows is broadly similar to this year, with the exception of India, which is expected to decline in line with, but not as a result of, bigger domestic production.

White sugar export availability is expected to decline in both 2019/20 (-1.183 mln tonnes) and 2020/21 (-11,000 tonnes), even though Indian exports are expected to continue increasing and lower exports from Thailand are expected to reduce white sugar shipments by only around 189,000 tonnes in 2020/21. Instead, it is the reduction in Russian exports in 2020/21 to 300,000 tonnes from 1.7 mln tonnes in 2019/20, which represents both the counterweight for reduced EU exports of 839,000 tonnes in 2019/20, as well as the main driver for the decline in 2020/21. Year-on-year increases in import demand for white sugar in 2019/20 have been noted for Pakistan (+630,000 tonnes) and the USA (+427,000 tonnes) after production declines”

Throwing light on the World Ethanol Production he added, “World ethanol production in 2020 has been revised lower, to 100.4 bln litres, as Brazilian mills have continued to focus on sugar production, rather than ethanol. Global ethanol consumption in 2020 is projected to reach 99.4 bln litres, 12.7 bln litres below 2019 and the lowest level since 2015. As countries relax containment measures, mobility has begun to recover, however, significant uncertainty remains in terms of the long-term impact of the pandemic on fuel demand and the effects of economic stimuli by individual governments. For 2021, preliminary projections point to a recovery in consumption to 109.3 bln litres. Global ethanol trade in 2020 will continue to be dominated by US exports, though these are expected to fall for a second consecutive year, owing to weaker fuel usage in destination markets. Brazil’s exports of ethanol, on the other hand, are expected to rise as producers benefit from a weaker BRL.”

Egypt extends sugar import ban for more three months - 09.09.2020

The Egyptian government has stated that it will continue the ban on sugar import for more three more months.

Trade and Industry minister Nevine Gamea said, “Sugar reserves in the country are estimated at 1.4 million tonnes and are sufficient to cater the need of the consumers for six more months.”

The white sugar used for the pharmaceutical industries has been excluded from the import ban. The decision has been taken to protect the local industry from the volatility of sugar prices at the global level.

The country had put a ban on sugar import in the month of June.

Iran: Sugar mill workers continue protest even after 86 days - 08.09.2020

Iran: Sugar mill workers are protesting from the last 86 days. Haft Tappeh Sugarcane Company workers are against the privatisation of the sugar mill and demanding the pending wages.

On September 5, the workers gathered in front of Khuzestan’s governorate to protest against the privatisation of the factory, and the arrest and dismissal of labor activists.

The workers also want the company to rehire the workers that have been fired. They also want the conviction of the CEO in the court.

Kenya: Governor assures construction of Sh10 billion sugar factory - 08.09.2020

Governor James Ongwae has assured the residents of South Mugirango Sub-county that the construction of Sh10 billion sugar factory will start soon this year. He assured people that despite the doubt raised by the other politicians, people should be confident that the government will set up the sugar factory.

According to the media report, South Mugirango MP Silvanus Osoro labelled the project a white elephant and urged the Abagusii people to forget about it and move on.

Ongwae has clarified that all the approvals have been received and the investors from India had only been held back by the Covid-19 pandemic.

Pakistan: FBR issues notice to labourer as Rs 3.6 million sugar sold on his CNIC - 08.09.2020

Faisalabad, Pakistan: Federal Board of Revenue (FBR) has issued notice to a labourer, who worked as a loader for five days in a sugar mill, as Rs3.6 million sugar had been sold out on his computerized national identity card (CNIC) in the year 2017.

According to officials, the sale took place at a sugar mill in Faisalabad in 2017 where the CNIC of Jaranwala’s Asghar Awan was used for the transaction. As per the records from the mill the sugar worth Rs 3, 6523,846 were sold out on the CNIC of the labour.

The labourer is disturbed since he received the notice and stated that he is not aware of the transaction. He has requested the government to help him in this regard as he worked in the mill in 2017 as a loader for only five days.

Sugar and the European Green Deal for a Competitive Ecology - 08.09.2020

Sugar is a strategic product. Beet sugar was “invented” by the continental blockade. The entire history of European sugar revolves around the same words: research and development, efficiency and anticipation. The European Green Deal opens the way to an economy combining sustainability, circularity and innovation, with the objective of creating a competitive ecology.

In conversation with ChiniMandi News, Marie-Christine – Director General of CEFS, the Association of European Sugar Manufacturers shared her views on how the organisation supports the European Green Deal.

She said, “Maximising the value of co-products and minimising waste is an objective or rather, a long-standing tradition of the sugar sector. This applies to both the agricultural and industrial portions of the sector. This willingness manifests itself at each stage of the process and begins from the harvest onwards: beet pre-washing, minimal storage time, frost protection, just-in-time factory delivery and fallen leaves used as compost.The sugar industry already prior to the greenhouse gas emissions trading scheme or the European Green Deal was a pioneer in increasing energy efficiency. Compared to 1990, the sector is on the way to achieve the GHG emission savings that the industry is asked to deliver in 2030 (minus 50 – 55%).

In the period 2019 to 2020 several factories using coal have been or will be closed. It should be further noted that 1.24 billion litres of bioethanol from beets are produced each year in the EU. It has multiple uses: energy (fuel for the automotive industry), food (alcohol, additives) and non-food (cosmetics, pharmacy, solvents, paints), including a remarkable and important production of hydroalcoholic gel during the COVID-19 crisis.

Commenting on the main challenge you see in the European Green Deal she said, “The European Green Deal: an economic and societal revolution in terms of huge projects, the single market of 1993 comes close to the European Green Deal initiative. The idea was to erase internal borders to enable the free movement of goods, services, people and capital. Clearly, it was about creating a mass effect that would lead to more volume, more competitiveness, more jobs and more growth.

With the Green Deal the challenge is quite different. The main idea is simple: ensuring carbon neutrality in the EU by 2050. This objective, however, requires the acceptance of new concepts and new behaviours, accompanied by a vast reorganisation of systems of production. To reach this neutrality objective proposed by the Green Deal, we must promote low-carbon energy, develop clean transportation, improve the energy efficiency of buildings, create an environment free from toxic substances and guarantee a more sustainable food chain, among other measures.”

“The course set by the Green Deal cannot be disputed, but it definitely raises some legitimate questions.
The first concerns its pace: is it too fast?
The second concerns financing; will the 2021- 2027 Community budget, not yet adopted, meet the challenges?
The third question is also fundamental: are the innovative concepts of the Green Deal compatible with the maintenance of earlier Community policies, for instance the CAP?
A fourth question can be further added: should the innovation promoted by the Green Deal extend to genetics and new agri-food techniques?” She added.

Sharing insights on the roadmap to success of the Green Deal, Marie commented, “The Green Deal’s success largely depends on the simultaneous compliance of common rules on the global scale, which need to be urgently (re) defined to ensure a sustainable planetary balance for everyone.

This is especially true for the social and environmental standards, currently very inequitable. It is also fundamental and urgent to restore undistorted global competition through many economic, trade or monetary distortions. Without this prerequisite, there is a great risk of exposing our agriculture and our primary processing industry to a regression, leading to its attrition.

Promoting a new European model is first and foremost about ensuring its sustainability without naivety, but with realism and pragmatism.”

On being asked where the difficulty arises, Marie answered, “Towards a more sustainable food chain this theme is also at the heart of the European Green Deal. However, it should be given an acceptable definition throughout the food chain: from producer to consumer. This is where the difficulty arises because in recent years there has been a breach of confidence between the consumer and the food chain.

This breach of confidence first finds its origin in an increased complexity of everything related to food: production and manufacturing techniques, product composition, labelling, European standards, etc. This complexity is at best a source of preconceived ideas and at worst a source of activism and disinformation.

In reality, there are no good or bad foods. And it is striking to see the stigmatisation of an entire set of products: sugar and fat. Just as the acceptance of new techniques resulting from research should justify an increased role for the Union’s scientific agencies, restoring a climate of understanding between producers and consumers will require Community authorities to adopt a new approach to the role of stakeholders in decision-making processes.

Speaking loudly and clearly should no longer be seen as a major vehicle for influence. There the challenge is immense. It will be up to civil society to adopt a demanding but realistic discourse. Agriculture and industry will have to learn to communicate with its consumers.”

Commenting on the consequences of COVID-19, she said
“The COVID-19 crisis will undoubtedly have the consequences of fueling already high tensions. Therefore, the desire for appeasement, dialogue and learning will become essential and will be the responsibility of everyone involved.

The road is very long, but even if the European Green Deal does not accomplish all of its objectives or does not meet all of its deadlines, the proposed course of action is the right one and the vibrant forces of the European Union must now act as solution-makers.”

About CEFS: The European Association of Sugar Manufacturers (or CEFS, French acronym standing for Comite Europeen des Fabricants de Sucre) is a non-profit organisation founded in 1953 to represent the interests of the European sugar industry, vis-à-vis international institutions with a view to creating a positive regulatory climate for the sector in all its dimensions: production, competitiveness, nutrition and food legislation. CEFS is an interlocutor recognized by the European Commission and participate, along with others, in the civil dialogue groups. CEFS’ membership is composed of sugar-producing companies in the EU, the UK and Switzerland.

Kenya: Sugar mill buys 18 tractors for smooth sugarcane transportation - 07.09.2020

For improving the cane delivery from cane fields to mill, the West Kenya Sugar Mill has purchased 18 tractors. This will help the mill to procure cane from Kakamega and Bungoma counties.

Jaswant Rai, chairman, West Kenya said that the investment has been done to increase the growth of the factory by facilitating the supply of sugarcane from fields in the nearby region. The bad state of the roads frequently affected the transportation and harvesting of the sugarcane.

Company head of human resource and administration Duncan Abwao said, “The tractors will increase our production as we will get more sugarcane for factories from the sugarcane fields.”

With the new tractors, the total number of tractors with the mill goes up to 127.

Government will soon implement comprehensive strategy for sugar industry survival: Guyana’s President - 07.09.2020

Guyana president Irfaan Ali said that our government is committed to the betterment of the sugar industry and will soon implement a comprehensive strategy regarding the same.

Ali said, “We have to change the approach towards the sugar industry and need field investment, infrastructure investment and capital investment for the same. The survival of the sugar industry depends on the intervention of the government and we will take up the necessary steps for the revival of the sugar industry in the country.”

As the sugar output in Guyana has witnessed dip this year, the country recently sought the help of India to revive the sugar estates that were closed about four ago by A Partnership for National Unity+Alliance For Change (APNU+AFC)-led administration.

Philippines: Sugar groups welcome allocations of sugar quota for USA - 05.09.2020

Two major sugar groups have welcomed the government’s allocation of 93 per cent of sugar for domestic use and 7 per cent for exporting to the USA. Roberto Cuenca, president of Asociacion de Agricultores de La Carlota y Pontevedra Inc. (AALCPI), said, “Group will follow the decision.” The group comprises over 10,000 members.

Earlier the AALCPI had urged the SRA to maintain status quo on the sugar classification for this season. It had recommended to allocate 95 per cent sugar to type B (Domestic use) and 5 per cent to type A. (US sugar market).

The Philippines government plans to increase sugar export to the USA due to the projection of an increase in domestic sugar production.

No sugar tax in Netherlands: Health Minister - 05.09.2020

The Netherlands plans not to introduce a sugar tax. The health minister Paul Blokhuis has told this to MPs.

Blokhuis told MPs that as many as 43 countries worldwide including 22 from EU have introduced some kind of tax on sugar and he was told to introduce the same in the country. However, while a comparison of the way the tax on sugary drinks is working in France, Norway and the UK show some positive benefits, the long term effect cannot yet be proved because the tax has not been implemented for long enough. Sugar is not the only cause of being overweighed.

Many countries, like the United Kingdom, Thailand, France, Ireland, Saudi Arabia, Portugal, and as well some US states, have introduced a tax on sugary drinks over the past few years.

Swaziland: Sugar revenue increases despite drop in cane yield - 05.09.2020

Mbabane, Swaziland: The revenue of Eswatini Sugar Association has been increased despite the drop in cane yield.

According to the 2019/20 integrated annual report covering the period ending March 31, 2020, the revenue increased from E5.13 billion to E5.94 billion.

Dr Phil Mnisi, the chief executive officer stated that the increase in the revenue is attributed to the increase in sales volumes and hike is the sales price.

Malawi: Minister intervenes to resolve sugarcane purchase issue - 05.09.2020

Malawi: Following the tension between the Salima sugar company and the cane farmers and the company showing an inability to buy a cane, the Agriculture Minister Lobin Lowe has intervened in the matter to find a long-lasting solution that would pacify both sides.

The company has shown an inability to buy 20,000 tonnes of sugarcane and the minister assured cane growers that the government is in talks with the sugar company to assist them.

The company has 60% shares in the sugarcane growing and processing business spread across 6000 hectares located along the shores of Lake Malawi. It is in the Public-Private Partnership (PPP) with the Government of Malawi through the Green Belt Authority (GBA).

According to the media report, out of those hectares-4000 are the core land for growing of sugarcane by Salima Sugar Company and GBA, 1000 is meant for medium-scale farmers, 550 is for smallholder growers and 450 for other developments. And the Company and GBA, are currently using only 1000 out of their 4000 hectares.

The company had bought the land from sugarcane farmers from 2017 to 2019 that had raised the hopes of the sugarcane growers. However, this time around, the company says it would buy sugarcane from the smallholder farmers until April next year. The reason behind this says that it has enough sugarcane for processing.

Philippines to export more sugar to USA - 04.09.2020

Manila, Philippines: The Philippines government plans to increase sugar export to the USA due to the projection of an increase in domestic sugar production.

According to the Sugar Regulatory Administration (SRA sugar policy for season 2020–2021, 93 per cent of the country’s sugar output would go to the domestic market and 7 per cent to the US. Earlier the government used to export 5 per cent to the US and use 95 per cent for domestic purposes.

In a statement issued, SRA said, “The favourable weather conditions and increase in the area under sugarcane cultivation have resulted in an increase in the sugar production by 2 per cent compared with last year. The estimated sugar production for the year 2020-21 would be 2.190 million MT.”