Abinash Verma, Director General, Indian Sugar Mills Association (ISMA) in an interview with CNBC-TV18, said ISMA is expecting to export nearly 7 million tonnes by the end of September. “That is a record high ever,” said Verma.
“In the current season, we will be diverting about 21 lakh tonnes of sugar into ethanol and next year we have been given the target by the government to achieve 10 percent ethanol blender across the country, we are sure that we should be doing that. If we are going to do that, we expect to divert almost 3.4 million tonnes of sugar into ethanol,” he added.
On demand improvement, he said, “In the month of June, we expect to have sold about 22.5 lakh tonnes. If we compare this with the similar position last year, till end of June 2020 and end of June 2021, we would have sold about 10 lakh tonnes more than last year. So the demand is much better than last year.”
“Demand is excellent, we are very happy with the kind of lifting and the offtake of sugar, which has happened in the first nine months of the current season,” he further added.
So, any sugar company, which has invested heavily in ethanol will be benefited.
The government is fixing ethanol price in relation to the sugar price. “Therefore, the return that we are getting is much better than what we would have got from sugar – so double benefit, immediate cashflow and better returns as compared to sugar,” he added.
In terms of sugarcane sowing and sugar production, he shared, “We are still not sure how the rain is going to behave in the next two-three months and how it is going to impact the yield and the recovery. However, through the satellite images, we have got the sugarcane acreage across the country and that shows a very big increase in the sugarcane acreage in Maharashtra.”
For the full interview, watch the accompanying video.
(Edited by : Bivekananda Biswas)
First Published: IST