Welcome Guest!
|
Members Log In
Close Panel
Home
About us
Ethanol
Cogeneration
Environmental
Statistics
Distillery
Sugar Price
Sugar Process
Contact us
News
Sugar mills face margin squeeze
Date:
04 Jan 2018
Source:
The Business Standard
Reporter:
Dilip Kumar Jha
News ID:
27828
Pdf:
Nlink:
The profit margins of sugar mills are likely to remain under pressure in October-December due to a sustained decline in the price of sugar following forecasts of higher production. The food ministry recorded a 7 per cent decline in the average sugar price in December to Rs 3,470 a quintal from Rs 3,733 a quintal a year ago. The average sugar price has declined by nearly 2 per cent in October-December from the same quarter a year ago.
Mills produced 6.94 million tonnes of sugar till December 15, up from 5.35 million tonnes a year ago, and are selling sugar at 8-10 per cent lower than its production cost due to excess cane availability. India’s sugar output is expected to rise 25 per cent to 25.1 million tonnes this year. Prices of molasses, rectified spirit and bagasse have also declined by up to 75-80 per cent, year on year, on estimates of higher cane crushing.
“Margins of sugar mills will come under pressure,” said BJ Maheshwari, wholetime director and company secretary, Dwarikesh Sugar Industries. Most sugar mills had reported healthy profits in the October-December quarter last year.
Sugar prices have declined by nearly 15 per cent since the beginning of the current crushing season in October, with the sugar S variety quoted at Rs 3,050-3,100 a quintal. The Indian Sugar Mills’ Association (ISMA) estimates sugar production cost at Rs 37 a kg. Most sugar mills are thus incurring losses.
Navigation
TV Interviews
Application Form For Associate Membership
Terms & Conditions (Associate Member)
ISMA President
Org. Structure
Associate Members(Regional Association)
Who Could be Member?
ISMA Committee
Past Presidents
New Developments
Publications
Acts & Orders
Landmark Cases
Forthcoming Events