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India is currently
the largest producer and consumer of sugar in the world. In the year
2001 it produced 18.50 million tones of sugar as against 12.05 million
tones in 1991. Sugar industry is the second largest manufacturing
industry in India, next only to textiles. It is amongst the cost effective
industries in the world with a turnover of about Rs. 2000 billions.
The industry supports nearly 30% of the Indian population directly
or indirectly.
With such voluminous trades it is natural that everyone connected
with it, be he a wholesaler, retailer, transporter or buyer, faces
some obstacles directly or indirectly. To remove these obstacles
some Sugar Portals have come up in India. Trade through a sugar
Portal increases the proximity and helps in finalizing a deal from
the remotest comers of the globe. Deals can be concluded quicker
through the portals which aim at B2B and B2C e-commerce. Processing
of sale-offers and buy offers, order confirmation, billing and payments
are made on-line. With the help of the advancements in information
Technology a new dimension is being given to the normal sugar trade
practice by shifting the scene from the traditional Auction Halls,
Mandis and Bazaar to the on-line shelf and making this commodity
easily affordable.
In April 2001, the Government of India's Cabinet Committee on Economic
Affairs (CCEA) and the Ministry of Food permitted futures trading
in white sugar to stabilize the market and safeguard the interest
of farmers, stockists and exporters. The permission to enter into
futures contracts in sugar would arm the traders with a hedging
tool. Government has already given approval to three companies for
setting up a futures exchange in sugar viz. E-Commodities Ltd.,
E-Sugar India and NCS InfoTech.
As an organization of the industry, Indian Sugar Exim Corporation
was contemplating playing a proactive role in the development of
sugar futures in India and has decided to pick up an equity stake
in E-Commodities Ltd., after going through the detailed presentation
made by all the three licencees.
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