Balrampur Chini: Sugar inventories comfortable; no official notice yet on curbs to ethanol diversion
AI Market Summary
Balrampur Chini Mills said domestic sugar inventories are adequate and it has not received formal notice on curbs to divert cane juice/B-heavy molasses to ethanol, despite policy discussions aimed at cooling sugar prices after a recent rise. The update highlights regulatory uncertainty around ethanol-linked demand and margin pressures from higher cane costs versus flat ethanol pricing. Near-term sensitivity is centered on Indian sugar fundamentals and policy.
Impact level
● Medium
Affected assets
NCCOSUGAR2USD/USDT+2.56%
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● Neutral
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Balrampur Chini Mills said domestic sugar supplies remain comfortable and that it has not received any formal government communication on restricting the diversion of cane juice and B-heavy molasses to ethanol.
The company reported Q1 FY27 revenue of 163.7 billion rupees and net profit of 4.4 billion rupees, with a margin of 6.96%.
Sugar prices have risen about 10% over the past month. The government is weighing curbs on ethanol diversion from the start of the next crushing season to help cool domestic sugar prices.
Balrampur Chini noted that all-India production costs are around 42 rupees per kg. It added that ethanol prices have been unchanged for three years while cane prices have increased 16.5%, and said its current capacity utilisation is about 85%.
