Indian sugar mills association

Sugar prices to drop by at least 5% over govt's curb on ethanol production, says Balrampur Chini MD

Date:	08 Dec 2023

Source:	Money Control

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News ID:	57213

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Sugar prices are expected to drop by "at least 5 percent" due to the government's latest notification that bars the use of sugarcane for the production of ethanol, said Vivek Saraogi, the Chairman and Managing Director of Balrampur Chini Mills, while speaking to CNBC TV-18 on December 8.

The government order, issued on December 7, is set to increase the country's production of sugar while reducing the output of ethanol. If the sugar production increases by around 15 to 17 lakh tonnes, "it will have a bearing impact on the target price", Saraogi pointed out.

A potential loss that sugar makers may face would depend on the quantum of reduction in sugar prices, he suggested.

Balrampur Chini Mills, one of the country's leading sugar manufacturers, reported a net profit of Rs 73.5 crore in the first quarter of FY24. The company's shares were valued at Rs 393.20 at the closing bell on December 8, down 3.72 percent from the previous day's close.

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