INDIA: Shree Renuka expects government to allow sugar imports
Published: 03/20/2017, 8:01:30 AM
Indian Sugar Mills Association (ISMA) is expected to release sugar production data from October 2016 till March 15, 2017 on Monday. Narendra Murkumbi, VC & MD of Shree Renuka Sugars estimates the crop to be below 19.5 million tonne, according to India's MoneyControl.
"Our estimate is that the crop will be below 19.5 million tonne", he said.
According to him, the industry has produced about 17.5 million tonne till March 15, 2017. So there could be a demand supply gap of 1.5 to 2 million tonne in the current year
The production season in south and west region of the country finished two months earlier than normal and the mills in North India are still operating but have started closing now, so this is the lowest crop in six years, he further added.
According to him, North Indian industry would do better this year because North India is having production close to 100% of capacity but the south and the west regions were affected by a big drought and so the production is down 40-50% compared to last year.
However, the government he said would not allow prices to go up and to curb that may start importing sugar. "I do not expect he government to allow prices to spike, I expect that some imports will be required and will be allowed", he said.