In an interview to CNBC-TV18, Niraj Shirgaokar, MD of Ugar Sugar Works spoke about the results and his outlook for the company.
ICRA expects the domestic sugar prices to remain firm in the near term, given the deficit situation in the domestic and international markets. This, coupled with moderate cane price increase seen for the current sugar year across most states, augurs well for profitability in the near-term, ICRA said.
Average prices jumped to Rs 35.6 per kilogram from Rs 27.5 per kg in the same quarter last year. This helped in posting a strong performance, said Dhampur Sugar's MD Gaural Goel in an interview to CNBC-TV18.
Sugar prices in the local market have risen more than 10 percent in a month on an expected drop in the production after back-to-back drought ravaged cane crop in the top producing western state of Maharashtra.
Sugar prices in the local market have started rising on an expected drop in the production after back-to-back drought ravaged cane crop in the top producing western state of Maharashtra.
Sugar mills in Maharashtra typically operate between November to April, but this year cane supplies have fallen due to back-to-back droughts.
Sugar mills in the district have purchased cane crops worth Rs 429.46 crore and released Rs 186.23 crore to the farmers during the current season, a top official said.
ICRA expects efficient and forward-integrated sugar mills to report healthy profitability trends across most key producing states over the next two to three quarters.
In an interview to CNBC-TV18's Reema Tendulkar & Prashant Nair, Tarun Sawhney, VC & MD of Triveni Engineering & Industries said that hike in fair and remunerative price (FRP) by Rs 30-40 per quintal could be dangerous.
Uttar Pradesh is the leader in sugarcane farming and sugar and the largest contributor to the state economy. But, both these statuses may soon be lost owing to the recent crisis, where payments have not being made in time.
Economists surveyed by Reuters had forecast a 0.4 percent fall in output compared with a provisional 0.8 percent year-on-year fall in April.
After leaving rates unchanged at a policy review last Tuesday, Governor Raghuram Rajan said the Reserve Bank of India, which has targeted inflation at 5 percent by March 2017, was still looking for room to reduce interest rates, but there were concerns over upward pressure on food and commodity prices.
The focus was on reducing costs and improving efficiencies in the Chloro vinyl business, said Ajay Shriram, Chariman and Senior MD, DCM Shriram.
"India will need to import next year due to a production shortfall," Ashok Jain, president of the Bombay Sugar Merchants Association (BSMA), told Reuters.
The government will on April 6 consider a proposal to keep fair and remunerative price for sugarcane unchanged at Rs 230 per quintal for the 2016-17 season.
In the 2015/16 marketing year, 513 sugar mills had started operations, but 107 mills stopped crushing by February end.
The drop in plantings for the 2016/17 season - which one official estimated means acreage could fall by about a third - comes after a faltering monsoon has damaged thousands of hectares of cane in the world's second-biggest producer.
M Manickam, Executive Vice Chairman of Sakthi Sugars says the Rs 7 per kg fall in sugar prices led to increase in losses for the company.
Abinash Verma of ISMA says the basic problem that the industry is facing is on account of surplus sugar which will be almost 10-10.5 MT from beginning of next season â€“ which is 4-4.5 MT more than what the government norms require to carry, putting pressure on sugar prices.
Farmers in India are especially dependent on monsoon rains as over 50 percent of agricultural land in the country does not have irrigation facilities and where major products off the land of nation remains rice, soybean, sugar and cotton.
Amid surplus sugar stocks depressing local prices, the delegation led by the Maharashtra Chief Minister demanded curbs on inward shipments of sugar by raising import duty to 40 percent from the existing 25 percent,
The sugar sector finally has something to cheer about. The share prices of sugar companies jumped between 4 and 6 percent, after the government, for the first time, de-linked the price of ethanol from the price of petrol, and linked it to the price of cane, reports, CNBC-TV18's Varinder Bansal and Archana Shukla.
The development comes in the wake of Karnataka High Court verdict upholding state government's powers to fix sugarcane prices.
After trailing the benchmark Nifty over the past three months, sugar stocks appear to have come back in the limelight, given the move today. But is it sustainable?
According to ISMA, sugar output in Maharashtra has reached 4.98 million tonnes while in Uttar Pradesh it declined 18 percent to 3.57 million tonnes and by four per cent to 2.7 million tonnes in Karnataka so far this year.