Global sugar prices have been on an upward trend and the expectation is that government incentives on ethanol blending and a rise in demand for biofuel will also aid going ahead to sector growth. Vivek Saraogi, MD of Balrampur Chini Mills discussed this.

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“In India this year we are expected to make less than 30 million. Consumption would be around 26 million. So the current surplus will be 4 million. Having said that, we will be exporting around 6 million,” he said. There is some excess but it is gradually tapering, he added.

In terms of prices, he shared, “If you get better export prices, you export faster. To that extent, sentimentally it helps domestic prices. So your incentive remains constant and if you export it at a higher price, it does impact your balance sheet, you get better realization," he added.

Right now, Balrampur Chini Mills is selling sugar at Rs 32 per kilogram.

“With Uttar Pradesh (UP) coming in, the price would start gradually moving up. So if we see, April, May and June, I would feel that every month we should increase gradually from here,” he further mentioned.

According to him, India’s balance sheet in 2023 would look good in terms of having zero surplus in terms of inventory or forward-looking production. He said the business outlook for FY22, isn’t bad at all.

For full interview, watch the video.

(Edited by : Yashi Gupta)

First Published:Mar 26, 2021 12:36 PM IST