Balrampur Chini says sugar stocks can meet demand until October or early November, no notice on ethanol diversion curbs
AI Market Summary
Balrampur Chini Mills stated sugar inventories are adequate through late October/early November and it has not received any official notice of government curbs on diverting cane juice/B-heavy molasses to ethanol, despite recent sugar price strength and speculation about policy action. The commentary reduces near-term supply-scare risk but leaves policy uncertainty intact as monsoon outcomes and potential early crushing could influence availability into the festive season.
Impact level
● Low
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● Neutral
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Balrampur Chini Mills said current sugar inventories are sufficient to meet domestic demand until October or the first week of November, and it has not received any formal government communication on restricting diversion of sugarcane juice or B-heavy molasses to ethanol. The company reported Q1FY27 revenue of ₹1,637 crore, net profit of ₹44 crore and a margin of 6.96%. Sugar prices have risen 10% over the past month, and the government is considering curbs from the season starting October to cool domestic prices, according to a Reuters article. The company put all-India production costs at around ₹42 per kg, said ethanol prices have not risen in three years while cane prices are up 16.5%, and estimated current capacity utilisation at about 85%.
