MAHARASHTRA SUGAR PRODUCTION
Budget Bets: Pushing sugar sector in the clean energy chain is good for politicians & industry: 5 sugar stock with upside potential of up to 25%
After multiple attempts were made between 2001 and 2002, finally it was post 2015 that the sugar sector started witnessing a turnaround. Why is this turnaround special? Because all the stakeholders of the sector, the farmer, the industry, the politicians, and customers have been happier in the last nine years. Given the fact that sugar is a subject which comes under both state and central government, it is probably one of the most complex industries to make any changes. Another fact is among the industry which despite being in existence for ages, none of the stocks has been able to reach a level where they would be classified as large cap stocks.This typically happens in industries which operate in specific regions. But in the long run if the sugar industry becomes an integral part of the clean energy system then things might change.
Hoping sugar production bounces back in Maharashtra and Karnataka: Atul Chaturvedi, Shree Renuka Sugars
As far as budget is concerned, nowadays most of the decisions are actually taken during the course of the year administratively. So, as far as budget is concerned, budget is no longer the budget which it used to be 10-15 years back
Beauty secrets: Inside India's booming beauty industry that relies on hundreds of contract manufacturers
Nishit Dedhia, the MD and cofounder of Kain Cosmeceuticals, is leading a tour of his cosmetics manufacturing facility in Khopoli, Maharashtra. The facility produces a variety of beauty products for the growing direct-to-consumer market in India.
Why food prices will remain high in India
Food inflation in India, driven by supply-side factors like adverse weather affecting crops, has remained at around 8 per cent year-on-year since November 2023. The elevated prices of food has prevented interest rate cuts as headline inflation exceeds the central bank's 4 per cent target. Drought, heat waves, and delayed monsoon rains have led to significant reductions in food supplies, particularly impacting vegetables, while government interventions and upcoming elections further complicate the situation.
Increase minimum selling price of sugar to Rs 42/kg, says industry body NFCSF
The National Federation of Cooperative Sugar Factories (NFCSF), representing co-operative sugar mills in India, has requested the central government to increase the minimum selling price (MSP) of sugar by 35% to Rs 42/kg. The MSP was introduced in 2018 and last revised in February 2019. However, sugar prices have been consistently higher than the MSP, with ex-mill prices in Maharashtra being Rs 36/kg, and retail prices in the range of Rs 42-44/kg. The NFCSF has already submitted its proposal to the Union Government.
Elections still on for them? But macro structure has changed for good: 5 sugar stocks with upside potential of up to 27%
In a sector, where government policies have a major impact, the risk of any change in policy impacting the players is always present. That is the reason why the valuations of these stocks from such sectors don't cross a certain threshold. Probably the sugar sector tops the lists of such sectors and the reason is because both the central and state governments have some say in the policy making. While the general elections are over, there are many states which have exposure to the sugar sector and state elections are going to be held there over the next couple of quarters. So a narrative might get built against the sugar stocks. What needs to be done, make a distinction between the reality that the balance sheets of these companies are much stronger than what they were, their business model is not just about sugar, but about part of the clean energy which is something which is going to grow.
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Election results in the onion belt increases hopes of industry and farmers for more farm friendly policies
"Soyabean prices have been low as the crushing of our own crop was less due to higher imports of cooking oils. Low import duties and low prices in the international markets led to a substantial increase in the import of cooking oils," said BV Mehta, executive director, the Solvent Extractors' Association (SEA).
Pricier kitchen staples upset home budgets
The prices of kitchen essentials like pulses, wheat and sugar have been rising continuously in May as domestic production lagged due to the deficit monsoon of 2023. Limited availability of chana, urad and tur in the international markets has kept imports sluggish and expensive, while sugar and wheat prices have been ruling firm as the buffer stock has shrunk beyond comfort level.
Government's stance on sugar exports amidst industry demands
ISMA seeks sugar export despite surplus, impacting closing stock projections. Central government prioritizes ethanol over export, aiming to build reserves. Sugar prices rise despite production surprises, with 2024-25 forecast dependent on monsoon.
Not so sweet: Sugar prices up 4.5% in last 2 weeks
Sugar prices rise 4.5% in 2 weeks amid soaring summer demand from ice cream and beverage companies. Government increases April sales quota to 2.5 million tonnes. Rising mercury and election campaigning fuel the surge.
Sugar output remains slightly lower at 31.09 million tonnes till Apr 15 of 2023-24 season: ISMA
India is a major sugar producing country in the world. Sugar season runs from October to September. Currently, there are curbs on sugar exports for an indefinite period. Indian Sugar Mills Association (ISMA) has revised the net sugar production estimate for 2023-24 season to 32 million tonnes.
No proposal to resume sale of subsidised rice for ethanol production: Food secretary
Government remains firm on not resuming subsidised rice sale for ethanol. Chopra encourages maize ethanol production and highlights the impact on distillery investments. Increased sugarcane FRP aims to boost cultivation for the upcoming season.
No proposal to resume sale of subsidised rice for ethanol production: Food Secy
The rice sale for ethanol makers was discontinued for various reasons, including apprehensions about domestic output and high retail prices, and economic unviability, he said. On the impact on investments on grain-based distilleries, Chopra said, "This is not a policy which is cast in stone. This policy will be renewed... Maize is being encouraged for ethanol production."
Net sugar output dips marginally at 280.79 lakh tonnes so far in 2023-24 mkt yr ending Sep: ISMA
India's sugar production declined to 280.79 lakh tonnes by March 15. Maharashtra, Karnataka, and Uttar Pradesh experienced varying levels of decrease. ISMA reported 371 active factories. Ethanol manufacturing and FRP hike were notable developments.
Industry body ISMA revises 2023-24 sugar production estimate upwards by 2.9%
According to the data provided by Maharashtra government, the state’ sugar production as on March 12 stood at 9.9 million tonnes against 10.15 million tonnes produced on the same day of previous year; down by 2.42%. “The sugarcane availability in Maharashtra and Karnataka is higher than what was expected earlier. However, cane availability in another major state Uttar Pradesh is predicted to be lower than earlier estimates,” said ISMA in a statement.
Sugar output marginally declines to 25.53 MT so far in this marketing year: ISMA
Sugar production stood at 25.84 MT till February in the year-ago period. Sugar marketing year runs from October to September. In its second estimate, the Indian Sugar Mills Association (ISMA) has projected sugar output to decline by 10 per cent to 33.05 MT in the current 2023-24 marketing year as against 36.62 MT in the previous year.
MVK Agro Food Product IPO: Check issue size, price band, GMP and other details
MVK Agro Food Product IPO: The SME IPO of MVK Agro Food Product opens for subscription today to raise about Rs 66 crore. It operates a sugar unit in Nanded, Maharashtra and offers 54.9 lakh shares at Rs 120 apiece, with revenues of Rs 60.12 crore and net profit of Rs 4.3 crore.
Increase in FRP to moderate profitability of sugar mills from Maharashtra, Karnataka, says ICRA
The central government's nearly 7.7% increase in the fair and remunerative price (FRP) of sugarcane is anticipated to impact the profitability of sugar mills negatively, according to credit rating agency ICRA. However, the sugar industry expects the hike in sugarcane prices to enhance competitiveness against crops like maize and rice.
Gross sugar output may fall 10 pc to 330.5 lakh tonnes in 2023-24 marketing year ending Sep: ISMA
India's sugar production, without ethanol diversion, is estimated to decline 10% to 330.5 lakh tonnes in the current marketing year. Maharashtra and Karnataka are likely to see lower output. The gross production in Maharashtra is estimated to fall to 99.9 lakh tonnes, while in Karnataka it may dip to 49.7 lakh tonnes. In Uttar Pradesh, the gross output is seen increasing marginally. The government has allowed sugar diversion of only 17 lakh tonnes for ethanol production. This could result in a net sugar production of around 313.5 lakh tonnes.
AISTA's 1st estimate pegs sugar output 4 pc lower at 31.6 mn tons for 2023-24 season
AISTA projects India's sugar production for the 2023-24 season to be around 31.6 million tonnes, a four percent decrease from the previous season. The estimated net domestic sugar production excludes a sucrose diversion of 2 million tonnes for ethanol production. The availability of sugar in the country is estimated to be 37.3 million tonnes, higher than the estimated domestic consumption of 29 million tonnes.
India's year-on sugar production till January 15 lags by 5.28%
Expecting a fall in India's sugarcane production due to drought conditions in Maharashtra and Karnataka, India has banned use of sugar syrup and B-heavy molasses for ethanol. However, despite the sugar production being lower than previous year, citing 'reports', the ISMA has now claimed that the sugar production is likely to be higher than expected earlier.
Maize prices surge 20% in India as government promotes ethanol production
Maize prices in India have surged by 20% in the first two weeks of January compared to October due to increased demand after the government's plans to procure the commodity for ethanol production. This move comes as restrictions are placed on using sugar for biofuel production. The prices are expected to stay firm in the coming months, and there could even be a shortage of the commodity.
India's Oct 1-Jan 15 sugar output drops 7% y/y: Industry body
Maharashtra's sugar production fell to 5.1 million tons from 6.09 million tons, while Karnataka's production dropped 12.7% to 3.1 million tons, the National Federation of Cooperative Sugar Factories said in a statement.
India's Oct-Dec sugar output drops 7.6% y/y: Industry body
India's sugar output this crop year, hit by weak rains, is set to lag consumption for the first time in seven years, according to traders and a survey of farmers, and lower plantings may even force the world's No.2 producer to import the following year.
India's sugar production till December 15 trails by 10.7%
"Maharashtra had the highest share of 24.25 lakh tonnes, followed by Uttar Pradedh, which has produced 22.11 lakh tonnes. Karnataka is at the third place with production of 16.95 lakh tonnes of sugar," said ISMA in a media release.
Curbs may be eased on sugar use for ethanol production
The government's decision came amid concerns about a fall in the production of sugarcane due to erratic weather conditions, and rising prices of the sweetener in the domestic market. The all India average consumer wholesale price of sugar was ₹4,142.21 per quintal on December 14, compared with ₹3,934.39 on the same day last year, according to government data.
Ethanol blending rate to fall to 10%: CRISIL
The ethanol blending rate in India for the ethanol supply year 2023-24 (November 2023 to October 2024) is expected to drop to less than 10%, down from 12% in the previous year, according to a report by CRISIL. This decline is attributed to the government's decision to restrict the use of sugarcane juice and sugar syrup for ethanol production due to lower sugarcane production caused by erratic rains.
India's sugar production to increase by 2.5 million tonne in 2023-24: Crisil
CRISIL has expected a 2.5 million-tonne increase in India's sugar production in 2023-24 due to a ban on using sugarcane juice for ethanol. The government's move immediately stops ethanol production from cane juice but permits it from B and C heavy molasses. With sugarcane supply issues, sugar mills face a choice between sugar and ethanol.
Competition among sugar mills for cane to get fierce as drought shrinks crop in Maharashtra, Karnataka
Sugar mills in Maharashtra and Karnataka are preparing for a battle to secure as much sugarcane as possible. Karnataka has set an official date to begin sugar production and will take legal action against mills that do not comply. Meanwhile, the sugar industry in Maharashtra is divided over the best time to start production in order to maximize the chances of obtaining a larger share of the reduced supply of raw material. This situation is causing concern among officials.
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