Shree Renuka to crush 37% more sugarcane in 2010-11 season

NEW DELHI: Shree Renuka Sugars, the largest sugar refiner in the country, is likely to crush 37 per cent more sugarcane at 5.5 million tonnes in the 2010-11 marketing year starting October, on the back of higher supplies.

"We had crushed about four million tonnes last year. We will crush between 5 and 5.5 million tonnes during the year depending on yields in 2010-11," company's CEO and Vice Chairman Narendra Murkumbi told reporters on the sidelines of a conference here.

India, the world's second-largest sugar producer, expects to produce over 25 million tonnes in 2010-11, up from around 18.7 million tonnes in 2009-10, on the back of increase in cane plantation area as a result of good monsoon.

Asked if the company is scouting for more acquisitions in Brazil, Murkumbi said, "The easy mergers and acquisitions are over. I think we will have to see how things evolve. We have a big business consolidating in Brazil and it has to reach its fullest potential. Currently, it is crushing below the potential," he said.

Since November last year, Shree Renuka Sugars have bought out two companies, Vale Do Ivai and Equipav AA, in Brazil with a cumulative cane crushing capacity of 13.6 million tonnes per annum.

On sugar supply situation in India, he said, "With sugar production touching 19 million tonnes in 2009-10 and sufficient imports, there is no deficit in the country. As per the industry estimate, the closing stock of sugar would be 58 lakh tonnes as on October 1, 2010."

He stressed that the government should allow export of sugar lying at ports. "About 4.5 lakh tonnes of raw sugar and 1.5 lakh tonnes of white is lying at ports. The government should allow exports because when the season begins, the first priority will be to crush domestic cane instead of refining the imported raw sugar," Murkumbi said.

source: ET