Sugar companies across the board have either slipped into the red or find their profits slashed in the first quarter of 2007-08, an indicator of what is in store for the current year.
Low sugar prices, poor realisation in the domestic and international markets and forecast of a high production during the 2007-08 season on the back of a glut in the current season mean that there is no immediate relief in sight.
Companies’ performance in terms of capacity utilisation and output has been comparable with that of last year but their margins have been eroded because of low prices, which are not expected to recover in the near future.
They attribute the reason to ban on exports in 2006 when domestic stocks were expected to reach record levels even as prices in the international markets were attractive.
Monday, August 6, 2007
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