The government-to-government level trade deal to export sugar to China will be a game changer for the beleaguered sector
The sugar output is now seen at 32 million tonnes for the season that began on October 1, down from its previous forecast of 35-35.5 million tonnes, the Indian Sugar Mills Association said in a statement.
As per Crisil's analysis, a 25 percent safeguard duty entails a rise in capital costs by 15-20 percent, which would have a 30-40 paise per unit impact on bid tariffs.
"Till April 30, 2018, sugar mills have produced 31.03 MT sugar in the current season. With 130 sugar mills still operating, majorly in Uttar Pradesh, it is expected that sugar production during the current season might end up between 31.5-32 MT," Indian Sugar Mills Association (ISMA) said in a statement.
Consequently, total cane arrears are estimated to have reached Rs 16,200 crore as on March 31 of the current marketing year (October-September). Of this, Uttar Pradesh has maximum arrears at Rs 7,200 crore, it added.
To improve liquidity of millers, the government should remove export duty of 20 per cent and allow shipment of 2 million tonnes immediately, it said in a statement.
Mills had produced 81.91 lakh tonnes of the sweetener in the same period of 2016-17 season (October-September). The Indian Sugar Mills Association (ISMA) has pegged total sugar output at 251 lakh tonnes in the ongoing 2017-18 season, as against 202 lakh tonnes last year. Consumption is estimated to be 250 lakh tonnes this year.
While Bangladesh levys import duty of USD 150 per tonne on sugar, Sri Lanka imposes USD 100. The two neighbours import about 25-30 lakh tonnes of sweetener annually, ISMA said.
Indian Sugar Mills Association (ISMA) said around 66 crore litre of ethanol was lifted by OMCs (oil marketing companies) for the ethanol blending programme in 2016-17 season (December–November). The previous record was 111 crore litre in 2015-16.
The Indian Sugar Mills Association (ISMA) has pegged 251 lakh tonnes (lt) sugar output this year as against 202 lt in the last year.
ISMA has pegged the output at 25.1 million tonne in 2017-18 season as against 20.2 million tonne in the last sugar season (October-September).
This is an initial projection based on the inputs of the state governments. The estimate, however, is in line with the industry body ISMA's projection.
Sugar production of India, the world's second largest producer after Brazil, is estimated at 20.2 million tonnes in the ongoing 2016-17 marketing year (October-September).
In an interview to CNBC-TV18, Abinash Verma of ISMA spoke about the implications and benefits of abolishing the state adviced price on sugarcane in UP.
Higher FRP is not impacting costs at current levels of sugar prices but it becomes challenging when sugar prices drop because FRP once increased never brought down, said Abinash Verma, Director-General, ISMA.
Mills in India, the world's biggest sugar producer, will churn out 20.3 million tonnes of the sweetener in the season to September 2017, the ISMA said last week, down 5 percent from its previous forecast and 13.2 percent lower than the estimate made in September 2016.
Indian Sugar Mills Association (ISMA) has trimmed the country's 2016-17 sugar production forecast for the third time this marketing year today, citing lower cane supply in drought-hit states like Maharashtra.
Sugar stocks are rallying on the back of low production output of the commodity. Vijay Banka of Dwarikesh Sugar Industries says that prices of the sweetener is reasonable and there is enough stock in the system.
Abinash Verma, Director General of ISMA, said that the yield in Maharashtra and Karnataka had dropped by more than 40 percent.
In an interview to CNBC-TV18 Abinash Verma, DG, ISMA said the news is negative for the industry and that ISMA has requested the government to continue with both cess and SDF. He added it has also requested the government to revise the cess to a lower rate rather than scrapping it completely.
Giving state-wise production data, ISMA said sugar output in Maharashtra fell to 31.43 lakh tonnes till January 15 of the 2016-17 marketing year from 43.79 lakh tonnes in the corresponding period of the previous year.
The country's sugar production has touched 8.09 million tonnes in October-December while demand remained low due to demonetisation, the Indian Sugar Mills Association (ISMA) said today.
Restructuring sugar mill loans is a piecemeal approach to a sector that has structural issues
The sugar mills are undergoing tremendous stress due to lack of capacity utilisation as a result of lack of sugarcane to crush.