INDIA: Balrampur Chini says import duty hike step in the right direction
Published: 07/14/2017, 8:31:35 AM
The government hiked the import duty on sugar to 50% from 40% to curb inward shipments and perhaps give a little bit of a leg up for domestic prices as well as farmers, according to India's Moneycontrol.
Giving a thumbs-up to the above decision, Vivek Saraogi, MD, Balrampur Chini Mills said it is a step in the right direction and will definitely help curb import of sugar, adding that unwanted sugar will be avoided because there is enough sugar in the country.
With regards to UP sugar mills, he said they are back to the pre-GST levels selling prices. There was correction in the month of June because of goods and services tax, destocking.
When asked how the math would now work out with respect to margins for them, he said the Chief Minister of UP is keen that the cane prices are such that both the miller and the farmer is happy. The CM is also keen that the miller should help increase the yield of the farmer, so that the farmer can double his income. This would help the farmer more than just tinkering the cane prices.
Going forward with all the policies and cane sugar prices in place, the sugar prices are expected to be neither soft nor be aggressive but would be stable, said Saraogi in an interview with CNBC-TV18.
Profits are mainly determined by cane prices and sugar prices and as of now both look okay, he said. However, in terms of production, crushing and recovery, it looks to be a record year, he added.
The recovery rate is expected to be more than last year, said Saraogi.