Prices to dip after next yr's production starts: Ugar Sugar

Here is a verbatim transcript of the exclusive interview with Prafulla V Shirgaokar on CNBC-TV18. Also watch the accompanying video.

Q: What kind of production are you expecting in this current year to clock in?

A: We have capacity of 11,000 tonne per day. We expect about 14 lakh tonne crush to be done this year.

Q: Last quarter was not too good for you—you posted a net loss—going into this December quarter what are you expecting on the bottomline. Do you think move into the black at this point and what are the current realizations that you are looking at?

A: The last quarter was almost without any production now that we are in production. Now we are expecting a good crush, we are getting a good price for sugar also. So we expect to fair much better than what it was.

Q: If you could just give us a number what kind of operating profits are you looking at?

A: That we can’t say at the moment. That depends on the final price that we announce.

Q: If you could throw some light on what is the price of cane being paid to the farmers right now and is it expected to rise in future?

A: At present we are paying Rs 2,000 per tonne (ex-field) that means another Rs 350 for harvesting and transport. The current prices are somewhere like Rs 3,600-3,700 for a quintal of sugar. So we might be in a position to pay some more cane price.

Q: What kind of realizations are you expecting going into the next quarter?

A: I told you it is about Rs 3,800 at the moment but because of the government announcement the prices are stable or little downward trend which might improve once again maybe upto the next year’s production. Once the next year’s production starts then the prices may fall.

Q: What is your debt situation currently?

A: Debt situation, I think I will have to check before giving you the number.