Prime stock update: Are we still sweet on this sugar maker?

1. 

   ksudhindra

   August 25, 2023 at 6:39 am

   Hi Pi Team,
   Indian government considering the ban on sugar exports, will be to great to know the impact.
   Thanks
   1. 

      Pavithra Jaivant

      August 28, 2023 at 10:46 am

      Hello Sir,
      As of now this export ban is just speculation. Please see attached news item.

      In any case, sugar exports each year are subject to the quota released by the Government based on cane and sugar production numbers. Usually Government decisions on sugar export quotas come later in the calendar year and as per the management of Balrampur Chini, the decision could be a little more delayed this year as they await more accurate data and it would be prudent to wait for this.

      Balrampur Chini does not directly export but sells domestically to merchant exporters for export markets. In FY 23 approximately 15% of sugar sales (volume) was to merchant exporters.

      It is worth noting that Q1 has been very encouraging for Balrampur Chini as the results of the cane development activities they have been undertaking are showing results. As increasing distillery capacity goes live, the revenue mix of the business is also expected to shift thereby improving margins. Being one of the most efficient sugar / ethanol makers in the country, we expect it to successfully navigate an export ban as well, IF it does happen.

      Separately, in future, please could we request you write in to us via this link so we can respond to you more efficiently.

      Thank you,

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