DCM Shriram expects sugar business to be stable

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The sugar business is expected to be stable this year and the rural demand is picking up, said Ajay S Shriram, chairman and senior managing director, DMC Shriram.

In an interview with CNBC-TV18, he said, “Demand in the rural area is picking up and the government has also done a lot of purchasing and given money directly into the bank accounts of various farmers. So that’s giving liquidity in the hands of farmers. Therefore, this year will be a stable year on the agriculture front, sugar is expected to be stable in the coming seasons because planting is satisfactory.”

The company is also focusing on increasing ethanol production. Recently government had advanced the ethanol blending target from 2030 to 2025. The roadmap for ethanol blending in India 2020-25 was released by Prime Minister Narendra Modi on June 5 this year on the occasion of World Environment Day.

According to the ISMA, after accounting for the reduction in sugar production due to diversion of cane juice and B-molasses to ethanol, ISMA estimates sugar production in 2021-22 at around 310 lakh tonnes of sugar.

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