Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. India
  4. Bombay Stock Exchange
  5. Balrampur Chini Mills Limited
  6. News
  7. Summary
    500038   INE119A01028


SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Indian mills hold off on signing new sugar export deals as local prices jump

09/20/2021 | 07:13am EST
FILE PHOTO: A vendor cuts sugarcane at a roadside sugarcane market in Kolkata

MUMBAI (Reuters) - Indian mills are holding off on signing new sugar export contracts for the upcoming season as a rally in domestic prices to a 4-year high widened the gap between local and global rates, industry officials told Reuters.

"Mills are not signing export contracts, as they are getting far higher prices in the local market," said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd.

Lower shipments from India could support global prices, as supplies from top producer Brazil are expected to decline, and traders were banking on India to compensate for the shortfall.

After shipping out a record 7.5 million tonnes of sugar in the current season, Indian mills have so far signed contracts to export 1.2 million tonnes in the 2021/2022 marketing year that starts from Oct. 1.

The bulk of those deals were signed in August, but a surge in domestic prices has since cut new contracts almost to zero, dealers said.

"Until last month mills were interested in exports as local and global prices were on a par. After local prices jumped, their interest dwindled," said a Mumbai-based dealer with a global trading firm, who declined to be named due to company policy.

Local prices have risen 13% in two months to 36,900 rupees ($500.39) per tonne, the highest since November 2017, after exports surged in the current year and the economy recovered from the COVID-19 crisis.

Exporters were offering mills up to 31,5000 rupees and 32,000 rupees for raw and white sugar respectively.

Mills are not interested in exporting sugar at a discount to local prices as the government has discontinued an export subsidy in place for the last three years, said another Mumbai-based dealer with a global trading firm.

"Mills are waiting for global prices to recover and the Uttar Pradesh government to announce its cane price," the dealer said.

India's biggest sugar producing state is due to announce its advised price for sugar cane - the mandatory price mills must pay to growers - in the next few weeks. With elections looming, it is likely to be elevated, the dealer said.

Global raw sugar prices need to rise above 21 cents per lb to make exports viable from India, or the government needs to once again make it mandatory for mills to export a certain amount of their production, said a New-Delhi based trader.

Naiknavare said that despite the current slowdown, India could export more than 5 million tonnes in the new season.

"In coming months global prices would rise on lower exports from India, while local prices will correct with new season supplies. It will make exports viable," he said.

(Reporting by Rajendra Jadhav; Editing by Jan Harvey)

By Rajendra Jadhav

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BAJAJ HINDUSTHAN SUGAR LIMITED -3.67% 13.12 End-of-day quote.112.64%
BALRAMPUR CHINI MILLS LIMITED 0.22% 320.5 End-of-day quote.86.17%
DWARIKESH SUGAR INDUSTRIES LIMITED -2.65% 68.05 End-of-day quote.119.87%
SHREE RENUKA SUGARS LIMITED -4.48% 26.65 End-of-day quote.119.52%
11/26Crisil Improves Rating on Balrampur Chini Mills to AA+; Lowers Outlook to Stable
11/08Balrampur Chini Mills Posts Rise in Q2 Consolidated Net Profit
11/08Balrampur Chini Mills Limited Reports Earnings Results for the Second Quarter and Six M..
10/22Tranche Update on Balrampur Chini Mills Limited's Equity Buyback Plan announced on Augu..
10/21Balrampur Chini Mills Limited's Equity Buyback announced on August 9, 2021, has closed ..
10/19Balrampur Chini Mills Limited's Equity Buyback Plan Shortened to October 21, 2021.
10/08BALRAMPUR CHINI MILLS : Cancels Repurchased Shares
09/20Indian mills hold off on signing new sugar export deals as local prices jump
08/10BALRAMPUR CHINI MILLS : Plans to Ramp Up Ethanol Production Capacity
08/09Balrampur Chini Mills Limited Announces Capacity Expansion of Ethanol Production
More news
Sales 2022 47 745 M 637 M 637 M
Net income 2022 5 530 M 73,7 M 73,7 M
Net Debt 2022 13 945 M 186 M 186 M
P/E ratio 2022 11,8x
Yield 2022 1,52%
Capitalization 65 395 M 871 M 872 M
EV / Sales 2022 1,66x
EV / Sales 2023 1,46x
Nbr of Employees 5 920
Free-Float 50,6%
Duration : Period :
Balrampur Chini Mills Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BALRAMPUR CHINI MILLS LIMITED
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus -
Number of Analysts 0
Last Close Price 320,50 
Average target price
Spread / Average Target -
EPS Revisions
Managers and Directors
Vivek Saraogi Executive Director & Managing Director
Praveen Gupta Executive President
Pramod Patwari Chief Financial Officer
Sumit Mazumder Chairman
Vinay Khanna Vice President-Business Planning & Operations
Sector and Competitors
1st jan.Capi. (M$)
SÜDZUCKER AG11.74%3 012
COSUMAR SA25.18%2 690
SÃO MARTINHO S.A.31.25%2 269
ADECOAGRO S.A.12.50%862