Page 51 - BCML AR 2019-20

Key government initiatives

Corporate tax relief: The government announced a new tax rate of 15% for new providing a boost to the Make-in-India
reduced the corporate tax rate to 22% domestic manufacturing companies, initiative.
from 25% to promote investments; it

Outlook

The immediate outlook for the Indian down. However, the long-term outlook capita basis and this reality could correct
economy appears uncertain in 2020-21 appears favourable: much of India’s with speed over the foreseable future.
on account of the pandemic induced lock- consumption is under-penetrated on a per
Q1, FY20 Q2, FY20 Q3 FY20 Q4 FY20
Real GDP growth (%) 5.2 4.4 4.1 3.1
(Source: Economic Times, CSO, Economic Survey, IMF)

Overview of the global sugar industry

Global sugar production is estimated years ago. Global sugar consumption is Global sugar prices are still trying to
to fall to around 175.1 million tonnes, estimated to rise 0.9% to 185.6 million recover from a 10-year low in 2018.
significantly below 184.9 million tonnes tonnes, in part owing to the ongoing Realisations finished 2019 at 13.42 c/lb
of sugar produced in 2018-19. The global reformulation of beverages, particularly compared to 12.03 c/lb at the close of
sugar deficit forecast for 2019/20 is set in sugar producing countries. Besides, the 2018.
to rise to a significant 7.5 million tonnes, onset of the global pandemic is expected
compared to ~7.8 million tonnes two to stagger global consumption.

Global sugar production, consumption and stock

145
Million metric tonnes, raw value 105

65

45

25
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Production Consumption Stocks

Annual Report 2019-20 | 49