Sources indicate that the Food Ministry has referred sugar deregulation to C Rangarajan and a partial decontrol of sugar sector could be expected soon. CNBC-TV18 also learns that the levy on sugar and release order could be done away with. M Manickam, managing director of Sakthi Sugars, in an interview to CNBC-TV18, said that if partial decontrol is allowed, then it will boost sugar exports.
Below is the edited transcript of the interview. Also watch the accompanying video. Q: We know that the government would probably be meeting in a couple of weeks to discuss the partial decontrol on sugar prices. Could you quantify the kind of impact that a company like yours could see? A: Government is speculating about doing away with levy sugar and the release mechanism. This would be good for most companies because then they can decide on what kind of stock levels they want to take and what level of hold position you want to take. We will need the future markets to be active and also the stock control to be lifted. The minister has said that the stock limitations will be lifted by end of November. Given that, we expect this should be good for the industry as the open general license (OGL) for export should be allowed because if there are no exports, we will be constrained with excess production which is coming in next year. So with exports, we can have very good realisation today. It could be around Rs 40 and it will be good for the industry. Q: What will be the time-frame? How will it impact Sakthi Sugars in particular? A: We have been taking about deregulation since a long time, but that hasnDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
