Motilal Oswal
    NIFTY 50
Motilal Oswal
September 14, 2018 12:08 PM | Economy

Increase in ethanol prices a win-win for industry and farmers, says Balrampur Chini

Welcoming the increase in ethanol prices, Vivek Saraogi, managing director of Balrampur Chini, said that the move was a 'win-win' for both, industry as well as farmers.

In order to encourage sugar mills to divert production of sugar to the vehicle fuel, the cabinet on Wednesday gave its nod to increase ethanol prices by 25 percent.

“I especially like this announcement of the realistic pricing of B-heavy(molasses) from Rs 47.50 to Rs 52.50 and the juice to Rs 59. This is the first time I think this price is absolutely realistic. There will be, to begin with, some diversion from sugar into ethanol via the B-Heavy route. This is a win-win both for the industry, farmer," said Saraogi.

“Prices have come off a little bit. They are around that 31 level, maybe a tad lower also. I think the government is also very soon going to look at the surplus sugar- how to handle it, next year. So I am not saying that we are not hopeful. I am very hopeful that one is going to look at exports next year, some realistic behaviour from the state government. So my outlook is now pretty positive on the way governments are reacting. My main grouse is with the state government, they haven’t done a thing,” he added.

“I am looking positively at ethanol, positively at power and with an export programme, I am not seeing sugar prices go down. If they don’t move up substantially, which I don’t think they will, they would play in this 31-32 range," Saraogi further mentioned.
Live TV