What does Dwarikesh Sugar anticipate from EGoM?

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What does Dwarikesh Sugar anticipate from EGoM?

Speaking to CNBC-TV18 about his expectation from the EGoM, Vijay Banka, CFO of Dwarikesh Sugar Industries said," It is rumoured that the government is going to allow export of 500,000 tonnes of sugar. This will clearly offer some advantage to the sugar mills which are presently not in too good condition."

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Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee would meet on Tuesday to decide on sugar exports. The group is likely to allow export of 200,000 tonnes of sugar under open general licence.

Speaking to CNBC-TV18 about his expectation from the EGoM, Vijay Banka, CFO of Dwarikesh Sugar Industries said," It is rumoured that the government is going to allow export of 500,000 tonnes of sugar. This will clearly offer some advantage to the sugar mills which are presently not in too good condition."

Below is the verbatim transcript of Banka's interview with Gautam Broker of CNBC-TV18. Also watch the accompanying video.

Q: The EGoM is slated to meet today what would be your expectation of what the outcome could be?

It is rumoured that the government is going to allow export of 500,000 tonnes of sugar. This was pending for quite some time; it was earlier allowed and then kept in abeyance. This will clearly offer some advantage to the sugar mills which are presently not in too good condition.

Firstly, some stock will move out of the country, so that should slightly support the domestic prices. Secondly, for our sugar mills, stock will move out so the interest burden will be lessened.

The only thing is that decision to allow sugar export is being delayed and the international prices are not too good at the moment. They at least 10% down from the prices that were prevailing about a month ago. But still it's a welcome development and if it is going to be allowed, it will auger well for all concerned.