homevideos Newsmarket NewsHike in sugar MSP will increase in the Northern region to Rs 32.50 33 per kg, says MD, Dhampur Sugar
Hike in sugar MSP will increase in the Northern region to Rs 32.50-33 per kg, says MD, Dhampur Sugar
The government has hiked sugar minimum support price (MSP) by 7 percent to Rs 31 per kilogram from its earlier MSP of Rs 29/kg.
Gaurav Goel, MD, Dhampur Sugar said that with this increase in MSP, the price in North India would now go up from Rs 30.50-31/kg to Rs 32.50-33/kg over the next week to ten days.
As of now, cost per bag is Rs 31 per kg, and so this Rs 2 hike in MSP will add to the profitability, and as far as areas are concerned, as of January 31 they were Rs 20,000 crore and almost one-fourth of it will get cleared because of this hike, he said.
With regards to the capacity, he added the company would manufacture 7.5-8 lakh tonnes and expect to sell 6-6.5 tonnes this year. For sugar companies, every Rs 1 increase in the price would boost profits by Rs 70 crore.
On ethanol, he said they are currently at 300 kilo litre/day (KLPD) capacity and would be adding 100 KLPD more. Dhampur will add 50 KLPD expansion by February-end and another 50 KLPD by end of April.
He further added, the company has always been a buyer of molasses and the price for that is around Rs 200 per tonne in UP, which is same as last year.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
LS Elections 2024 | BJP moves Supreme Court against Calcutta HC order staying ads violating Code of Conduct
May 24, 2024 3:58 PM
Supreme Court refuses to direct disclosure of polling data under Form 17C
May 24, 2024 12:08 PM
The Election Commission’s voter turnout data: The concerns and a court case
May 24, 2024 11:53 AM