Balrampur Chini Mills's financial results for the quarter ended June 30 as profitability improved but there was a slight miss on revenues. MD Vivek Saraogi said higher sugar prices led to higher realisations in the June 2019 quarter.

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“Right now the government has cleared two proposals. One is not to raise the fair and remunerative price (FRP) and the second is to continue the buffer stock at a higher quantity from 3 million to 4 million for one year,” he said.

“However, under examination is quantum of exports to be declared for the next year and at what support level,” he added.

He further said that if the company undertake exports this year, it could have net inventory reduction. According to him, with exports going higher, closing inventory will be lower.

On ethanol business front, Saraogi said, “Our distillery commissioning is on track, we should be able to begin production by December 1st.”

About exports, the MD said, “Definitely and logically it should be higher than last year’s number of 5 million. Support level being determined by the government.”

“Having said that global markets do not seem too bad to me, they are near 12 cent mark and my view is that they could inch up because Brazil, there is no surplus. There should be a global, technically, deficit this year but there is no deficit because there is a large carryforward inventory. So globally we shouldn’t add to inventory this year,” he further added.

Balrampur Chini Mills has taken markdown of Rs 2 per unit in power business, Saraogi added.