Rural demand picking up, expect sugar business to be stable: DCM Shriram

DCM Shriram expects the sugar business to be stable this year, Ajay S Shriram, chairman and senior managing director, told CNBC-TV18 on July 22. He added that demand in the rural areas is picking up.

Shriram’s comments come days after the company reported good earnings for the June-ended quarter driven by the chemical segment. However, growth is limited due to the weak sugar segment.

“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,” said Shriram.