Sugar Sector

Sugar Sector

Wipro, Bank of India, Indian Bank, SKS Microfinance, Biocon, Bharat Forge, Mahindra and Mahindra Financial, DB Corp, Sobha Developers, Reliance

Wipro, Bank of India, Indian Bank, SKS Microfinance, Biocon, Bharat Forge, Mahindra and Mahindra Financial, DB Corp, Sobha Developers, Reliance Industries, Sugar Sector

Pawar pushes for sugar decontrol

Food and Agriculture Minister Sharad Pawar has reportedly made a detailed presentation to the Prime Minister on the issue of deregulating the sugar sector. According to Pawar's plan, the Centre should buy sugar at prevailing market prices for the public distribution system (PDS) directly from the open market in the new sugar year starting October. At present, mills are obliged to sell 20% of their sugar produce to the Central Government for distribution under the PDS at almost half the market price. The Centre also directs each month how much sugar should be released for the open market sale. Under decontrol, this release mechanism will be discontinued and sugar mills will be free to sell their produce as they wish.

Right time to decontrol sugar: Sharad Pawar

This is the right time to decontrol India's sugar sector as production in India is all set to rebound, Agriculture Minister Sharad Pawar said. Pawar, who has recently taken over as the chief of the International Cricket Council (ICC), also said that the Government is actively considering imposing tax on sugar imports. The Government may end stock limits for bulk consumers of sugar, he said in New Delhi. "Sugar sector is heavily regulated. This is the time the millers and the Government should sit together to decide on easing restrictions on sugar sector," he told an industry conference in the capital. The Government sets the benchmark price for sugarcane and the monthly sales quota for mills, who are required to sell 20% of their production at below-market prices to the Centre for resale to the poor through fair price shops. Pawar did not provide a timeframe as to when the Government would end the controls. He also said that he expects a strong rebound in India's agriculture output, which will reduce food price inflation. Last year, India had suffered the country's worst drought in 37 years, hitting farm output. The flood situation in Punjab and Haryana, the main grain producing states is not serious, the Agriculture Minister said.

Govt softens stance on sale of non-levy sugar

The Government has partially relaxed norms for mills to sell non-levy sugar quota for March in the open market. It has given them seven more days to sell the allocated quantity, the Ministry of Consumer Affairs, Food and Public Distribution said in an order dated March 10. The validity period for each week in March is extended by seven days so that mills can sell quota for week ending March 31 by April 7, the Ministry said. The Government had earlier asked sugar mills to sell a part of their monthly non-levy quota every week, failing which the unsold quantity will be converted into levy sugar and sold at subsidised rate through the public distribution system (PDS).

Separately, the Indian Sugar Mills Association (ISMA) said that India is expected to produce 16.8 million tonnes of sugar in the current season that ends in September, raising its output forecast by 5%. Yields in the top sugar producing states, Maharashtra and Uttar Pradesh, have improved, president Vivek Saraogi said. Several sugar mills have started winding up operations as they have crushed all available cane and many others are likely to shut down by end-March, he added.

Improved supply and higher output figures for 2010-11 have pressured retail prices of sugar over the last month to Rs35-40 per kg range, down from a high of around Rs50 a kg at the end of December and early this year. Sugar was selling at Rs31.75 per kg. This was slightly higher over March 8 when it was selling at Rs30 per kg. This is because the Maharashtra State Cooperative Sugar Factories Federation issued an appeal to sugar mills, asking them not to sell sugar below Rs32 per kg at ex-mill rates.

India Sugar Sector Update

India Sugar Sector Update

Sugar Sector

Sugar Sector

Govt extends deadline for meeting sugar export obligation

The Cabinet Committee on Economic Affairs (CCEA) approved the extension of the period for fulfillment of export obligation of advance license holders who imported raw sugar between Sept. 21, 2004 and April 15, 2008. There was a shortfall in sugar production in 2004-05 sugar season (Oct-Sept). The Central Government, with a view to augment domestic stocks of sugar, allowed import of raw sugar on ‘ton-to-ton’ basis under Advance Authorization Scheme (then Advance License Scheme). This policy of ‘ton-to-ton’ remained in vogue from Sept. 21, 2004 and April 15, 2008. The export obligation against imported raw sugar under this relaxed policy was 20.75 lakh tons. The export obligation of 9.67 lakh tons is yet to be fulfilled.

In January 2009, the Government had decided to extend the period for discharge of pending export obligation till Dec. 31, 2009. In view of anticipated low production of sugar in the current sugar season, the Government has approved the following two options to Advance License Holders who are yet to fulfill their export obligation:-

a. Further extension of time up to March 31, 2011 for export without payment of composition fees

b. Pay customs duty as applicable during the relevant period, in which case they will be discharged fully from the export obligation for the quantity that they have not been able to export under the policy.

Advance authorization holders may exercise either of the two options mentioned above.

Sugar Cycle

Sugar Cycle

Natco Pharma, Balrampur Chini, Sugar Sector

Natco Pharma, Balrampur Chini, Sugar Sector

Sugar politics stalls parliament business

Parliament proceedings were completely paralyzed for the first two days of the winter session as sugarcane farmers, with the backing of the opposition parties, protested against a proposed ordinance. The farmers protested against Sugar Control (Amendment) Order, which fixes a uniform Central Fair and Remunerative Price (FRP) for sugarcane growers. They forced adjournment of both Lok Sabha and Rajya Sabha till Monday demanding a hike in sugarcane purchase prices. Thousands of sugarcane farmers gathered in New Delhi to protest a Rs35 per quintal drop in price they get for their crop after an Oct. 21 government ordinance. The Government has announced a price of Rs129.85 per quintal for sugarcane during the 2009-10 crushing season under the FRP system, while the Uttar Pradesh State Advisory Price (SAP) has been set between Rs.165 and Rs.170 per quintal. In case a state government fixes SAP higher than the FRP, it will have to pay the difference, according to the proposed sugar ordinance. Farmers want Rs.280 per quintal for their produce.

Farmers from Western UP, who have been demanding a price of Rs 240 per quintal, jammed Central Delhi, while their representatives in Parliament from Ajit Singh-led RLD, Mulayam Singh led-SP and Sharad Yadav-led JD(U) disrupted the functioning of the Lok Sabha, demanding withdrawal of the Order and payment of higher purchase price for sugarcane by mills. The Bharatiya Janata Party asked the government to convene an all-party meeting on the sugarcane pricing policy in the wake of opposition to the Centre's FRP ordinance. The Government will amend the ordinance on sugarcane prices if it affects the interest of farmers, Prime Minister Dr. Manmohan Singh said. Congress General Secretary Digvijay Singh said that the PM has assured Rahul Gandhi that the Centre will amend the ordinance suitably if it was against the interest of farmers. The Government called leaders of all political parties for a breakfast meeting on Monday to find a solution.

Sugar Industry

Sugar Industry

Sugar Earnings Preview - Q3FY09

Sugar Earnings Preview - Q3FY09

Sugar Sector

Sugar Sector

Sugar Sector

Sugar Sector

Sugar Sector

Sugar Sector

Sugar Sector Update

Sugar Sector Update

Sugar Sector

Sugar Sector

Sugar stocks may move up

The following stocks be in the limelight in today's trade.

Sugar stocks may see an upside on reports that cabinet ministry has approved relief package for sugar Industry. Government makes 10% ethanol blending in petrol mandatory from 8 October 2007 and 5% ethanol blending in petrol mandatory with immediate effect.

As pre reports, iGate Global Solutions has reported a net profit of 126.73% to Rs 22.9 crore in Q2 September 2007 as against Rs 10.1 crore in Q2 September 2006. Revenue declined 1.4% to Rs 200 crore in Q2 September 2007 from Rs 203 crore in Q2 September 2006. The company will officially announce the Q2 September 2007 results today.

Reliance Energy (REL) has reportedly bagged transmission project worth Rs 2,000 crore. As per reports, Jyoti Structures will provide EPC services for REL project.

Cummins, one of the principal customers and shareholders of Kpit Cummins, is reportedly looking to raise its stake in the latter to near 15% from about 13% currently. Kpit Cummins' board will meet on 17 October to consider preferential allotment to Cummins.

Moser Baer Entertainment is reportedly in talks with all electronic majors including Philips, LG, Samsung and Mirc to jointly collaborate and launch a low-end VCD and DVD player, priced around Rs 1,000 and Rs 1500 respectively.

The Board of Control for Cricket in India (BCCI) has reportedly decided to blacklist Zee Sports form participating in the bidding of the broadcast rights for the Indian Premier League (IPL) — BCCI's version of the Twenty20 game in view of the ongoing fracas between BCCI and the Subhash Chandra-owned Indian Cricket League (ICL).

Almondz Global Securities has entered into an agreement with Noble Group, an independent investment bank in the UK. It plans to jointly set up two foreign institutional investor desks in Mumbai and London, start primary equity operations and a fund.

DS Kulkarni Developers' board approved the merger of Oyster Promoters & Developers with itself.

S Kumars Natiowide reportedly sees its net profit at Rs 190-200 crore on revenue of Rs 1700 crore in 2007/08, driven by its brands and garment business.

Foreign institutional investors were net buyers of equity worth Rs 1416.72 crore on Tuesday, 9 October 2007 while domestic institutional investors net sold Rs 529.38 crore, according to provisional data on NSE.

Sugar Sector Update

Sugar Sector Update