India is set to miss its target for sugar exports this year owing to the late start to shipments as well as some logistical challenges.
However, Pramod Patwari, CFO of Balrampur Chini Mills, on Wednesday, said that despite the challenges India should be able to export 5-6 million tonne of sugar this year.
“It is correct that there are some challenges in respect to container availability. But what we have seen in the last year also, in the midst of COVID also, industry was in a position to export entire quota of 6 million tonne."
"Though this is a fact that there are some challenges in the short term, we are of the view that in relation to the very strong international prices, we should be in a position to do 5-6 million tonne of exports this year as well,” he said in an interview to CNBC-TV18.
Patwari said that global sugar prices are 17 cents higher from the earlier 14 cents due to supply shortages from Brazil.
“International prices are expected to remain firm because of the fact that Brazil has faced a severe dry weather condition. Crude prices are also strong. So, we are not sure what kind of diversion will happen next year as far as the Brazilian sugarcane is concerned. That is also expected to keep the sugar prices up,” he said.
He said that currently they are selling at Rs 32 ex-mill in Uttar Pradesh (UP). However, he expects domestic sugar prices to go up in the next 10-15 days.
“We expect sugar prices in the domestic front to go up. The summer is setting in and once the mills start closing down their operations in view of lower cane availability, we are of the view that in next 10-15 days sugar prices should improve,” he said.
He said that Balrampur Chini has achieved 98 percent of ethanol supply this year. He also added that the new ethanol plan will be commissioned by November 2022.Watch video for more.