Country’s sugarcane production for 2009 -10 may increase marginally and enhance recoveries and increase in cane crushing should help improvement in production, Balrampur Chini Mills Limited (BCML), leading sugar mills in India, said in a statement.
The statement also said that firm sugar realisation was seen for the next sugar season. In spite of marginally higher production, the huge demand-supply mismatch still exists. Internationally sugar prices continue to remain firm on account of global deficit of sugar, primarily on account of India.
The country is likely to import 5-6 millions tonnes of sugar to bridge the current gap between demand and supply. Currently, 4.5 million tonnes of raw sugar has been contracted, of which 2.6 million tonnes have already landed.
BCML expects marginally higher sugar production in the 2009-10 sugar season. Preliminary outlook suggests better recoveries combined with higher crushing should enable the company improve production.
In FY2009, BCML contracted 85,000 tonnes of raw sugar. Imported sugar will be processed in the 2009-10 sugar season. The company is to pursue additional imports based on local and international market environment and government policies in this regard.
Viivek Saraogi, managing director, Ballrampur Chiinii Miilllls Liimiited, said, “BCML continues to benefit from firm realisations in the sugar segment, while volumes were subdued due to lower production in the previous season. Lower cane crushing also had an adverse impact on our allied businesses, but keeping in view the well-balanced nature of our integrated model, we were more than able to make up our performance on the back of a better sugar business. The country is set to witness yet another sugar deficit season, with high demand-supply mismatch and lower inventories. Therefore, we are entering the next season with a firm outlook on sugar prices. Our initial estimates suggest that we should be able to achieve higher growth for the company in the next sugar season. Healthy sugar realisation will lead to better earnings from the sugar segment and should cover lower volumes. The increase in tariff rate and open access policy are further positives that will enable us to report an improvement in our cogeneration business.”
Source : fnbnews.com