New Delhi [India], September 9 (ANI): There is no reason to panic over the recent spike in sugar prices as there is enough sugar available in the market, while imports and the arrival of new-season sugar are expected to further augment supplies ahead of Diwali, Ravi Gupta, Executive Director, Shree Renuka Sugars Ltd, said on Wednesday.
“I do not see any reason to panic at all. In the commodity market, the spike happens upside, and there also spike happens downside. You have seen in the last few days, the prices have dropped down by 25 per cent and if you look at the statistically also and the whole industry also, there is enough sugar in the market and it will be also topped up with the imports which have been announced,” Gupta said.
Speaking to ANI on the sidelines of an Indian Sugar & Bio-energy Manufacturers Association (ISMA) event, Gupta said the government was making efforts to facilitate an early start to the new sugar season, with new sugar expected to come into the market from October 15, if all goes well.
He said the availability of fresh sugar in about one-and-a-half months, along with the announced imports, should ensure adequate supplies during the festive season, and there was no reason to worry about Diwali availability.
The festival is due in the first half of November while the new sugar marketing season typically commences from the middle of October. Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu and Bihar are among India’s key sugarcane-producing states.
The government has announced 1 million tonnes of sugar imports under the Tariff Rate Quota (TRQ), which Gupta said would further supplement domestic supplies.
On concerns over ethanol diversion, Gupta rejected the argument that ethanol was responsible for the recent sugar price movement.
“How can one blame ethanol for anything and everything? When you talk about sugarcane crop, you talk about the sucrose. So, some of the sucrose you use for food, some of the sucrose you use for ethanol, some of the sucrose you use for international market. This will always be a balancing factor,” he said.
Gupta said the sugar industry had become more efficient in recent years as new technologies and additional revenue streams such as ethanol and compressed biogas (CBG) supported the sector.
He also said the industry had made significant progress in clearing sugarcane arrears, with most payments to farmers being made on time.
“Largely the sugarcane arrears have been paid, and the farmers are very happy because we are able to pay them on time and they are getting a remunerative price for their sugarcane,” he said.
Looking ahead, Gupta said a key challenge for the industry was to increase sugarcane productivity without expanding the land under cultivation.
He said the sector needed to grow more cane on the same land while developing sturdier and healthier cane that could withstand pests and other crop-related challenges.
Gupta also said the sugar industry needed to continue focusing on value addition and diversification as it looks to strengthen its long-term prospects. (ANI)
No reason to panic over recent spike in sugar prices, new crop to augment supplies before Diwali: ED, Shree Renuka Sugars
