Sugar prices moved up 3-5% on festive demand. Rajshree Pathy, chairperson and managing director of Rajshree Sugars , in an interview to CNBC-TV18, spoke on the future outlook of the industry.

Q: Could you tell us what is the movement that we are seeing sugar prices ahead of the festive demand and how do you expect that to trend?

A: You will see a positive uptrend from now onwards. The stock market has downplayed the value of the good sugar stocks. So, people are buying and our stock has also gone up. So, this is good news for all of us, people are looking at sugar positively again.

International prices of sugar have gone up, so that is also playing on the market sentiment.

Diwali is round the corner, so ex-factory prices have gone up Rs 50 per quintal in Maharashtra, UP and some of the Southern States as well. So, that bodes well for the Diwali season. The government is perhaps looking to conceive to the demands of industry in order to allow a little more export of sugar.

The industry has been asking for about 4 million tonne export during the current season, so hopefully, the minister will decide and give us some good news before Diwali. We think that sugar is now going to start moving upwards.

Q: Any idea in terms of realisation? What could we expect because of the festive season?

A: The retail hasn’t moved up, which is a good news because then the government is not going to clam down and they haven’t announced any extra quotas because the quota that they were given seems to be taking care of Diwali demand since it was slightly high.

Hence, it will help keeping the prices stable in the retail market. However, the prices have gone up by Rs 50 per quintal.

Q: Could you give us some guidance for the financial year?

A: The situations is looking good, our new distillery i.e. an 80 kilolitre a day (klpd) distillery is going to come into production and is going to add very good value to our balance sheet.

Our co-gen plants are all doing extremely well. We have got more than anticipated planting of sugarcane. So as far as Rajshree Sugars is concerned, I am very optimistic. Moreover, monsoons have been extremely good in all our captive areas. I have always been positive for sugar in the long-term as well.

Q: Any kind of meeting is scheduled with respect to additional demand of export with the Ministry?

A: They have been giving us dates and then postponing it. But maybe next week, we are hoping something will happen, we will be called to New Delhi.

source: moneycontrol


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