S P TulsianIn an interview with CNBC TV 18 he said,
SAP(State Advisory Price) for this season was fixed at Rs 140 per quintal of cane and the industry expects cane pricing to now be linked to sugar prices. Also, there was increased bullishness on the commodity in global markets.
Prices of sugar ahead may be around Rs 25 per kg.
Sugarcane production is highest in UP and but recovery there is lowest. This season the government set the sugarcane price at Rs 140 per quintal while the amount paid by the sugar mills is as high as Rs 150-160 per quintal. Against that, they have a recovery of 8.5-9% in this season. But because of this high costs generally, they have a realization of about Rs 1 to Rs 1.50 per kg.
Prices of sugar ahead may be around Rs 25 per kg.
Sugarcane production is highest in UP and but recovery there is lowest. This season the government set the sugarcane price at Rs 140 per quintal while the amount paid by the sugar mills is as high as Rs 150-160 per quintal. Against that, they have a recovery of 8.5-9% in this season. But because of this high costs generally, they have a realization of about Rs 1 to Rs 1.50 per kg.
Maharastra is the largest sugar producing state of the country. The entire sector is governed by a cooperative, it’s very difficult for an individual to set up a mill there. The second state, which comes on the radar or by the listed companies’ point of view is Karnataka where the price of sugarcane is quite low — about Rs 130 per quintal. Against the recovery of 11.5% this season, the prominent players in Karnataka are Shree Renuka Sugars and Ugar Sugarworks because they contribute a significant production to the country.
- Balrampur Chini,
- Bajaj Hindustan,
- Shree Renuka Sugars,
- Ugar Sugarworks,
- EID and Sakthi Sugars
source: MC
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