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  Sugar Portals and Futures Trading.
  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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