Sugar companies were rallying in trade today after hike in prices in Maharashtra.
Confirming the price hike, Narendra Murkumbi, Vice Chairman and Managing Director, Shree Renuka Sugars said prices have moved up by about Rs 1 per kg in the last one week on back of news that production will be significantly lower than last season
Production is currently running ahead of previous year because the season started early in most producing states but the output could be 3-4 million tonnes lesser than last year and would be below 22 million tonnes.
However, he was not sure if prices would continue to trend up because consumption fell due to demonetisation. Sales dropped by about 1 lakh tonnes, which is about 0.5 percent of monthly consumption. So price trajectory depends on how quickly demand comes back, he said.
Meanwhile, he is not worried about cash payments because most cane payments are made by cheque, only withdrawal would be a problem for farmers and for payment to labourers, said Murkumbi.
For the full interview, watch video
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