Sugar Policy Review Unlikely Before Early 2025, Says Shree Renuka Sugars' Atul Chaturvedi

A review of the sugar export policy does not look like a possibility on an immediate basis, according to Shree Renuka Sugars Ltd. Executive Chairperson Atul Chaturvedi.

Union Minister Prahlad Joshi had on Thursday hinted at a review of sugar exports for the 2024-25 season. Joshi also mentioned the government was mulling a possible ethanol price hike as well as an increase in the minimum selling price of sugar.

The Indian government, in 2022, banned sugar exports due to rising prices in India arising out of manufacturing issues.

Speaking to NDTV Profit, Chaturvedi said while he did not see the possibility of a policy review until early next year, the price hike could happen soon.

“Export (policy review) possibility on an immediate basis does not look to be a reality because the government would see how things pan out and how the new season goes. Probably, it will be February or March before they take a view on this,” Chaturvedi said.

However, two out of the three decisions should come in before the crushing season, the top executive said, referring to sugar MSP and ethanol price hike.

Chaturvedi said even if the decision on the sugar export policy was delayed, it was unlikely to affect Shree Renuka Sugars.

“Our exports are actually based on advanced allocation. We bring in raw sugar into the country at a port-based refinery and we re-export it with a value addition of 15%. It has nothing to do with the domestic sugar market,” he said.

The chairperson, who was part of meetings with the government in bringing up the issues of MSP and ethanol price hike, said the developments should augur well for the industry.

“The industry has been demanding from the government that the ethanol price needs to be revised as there is no point in buying maize ethanol at Rs 72 and depriving the sugar sector,” he said.

The MSP also has to be increased for the simple reason that the MSP of Rs 31 was decided five years ago. After that, the fair remuneration price of sugarcane has increased almost 34-35%. There is no reason to keep the MSP at Rs 31, he added.

Shares of Shree Renuka Sugars closed 10.9% higher at Rs 53.15 apiece on Friday. That compared with 0.16% decline in the country's benchmark NSE Nifty 50.