Informed sources told the paper that during a recent trade mission to Singapore, an executive from Singapore-based agribusiness giant, Wilmar International, which operates eight sugar mills in Queensland, expressed his displeasure to Mr Robb on the matter.
While the depreciation of the BRL favours exports it also raises the sector’s debt, said Itaú BBA’s director Alexandre Figliolino. Unica, the sugar industry body, estimates the sector’s revenue this harvest at nearly BRL84 bln, a 17% increase over the previous season but below the level of debt.
The consensus is that despite an investment of some US$250 million PCSC to modernise the factories to improve sugar production and support cane production which is under their control, the performance from both field and factories have been wanting.
India – McKinsey calls for diversification, productivity increases and investment in R&D [Registered]
The consultant failed short of suggesting a radical reform of the production arm of the politically sensitive sugar policy which has contributed to the “worst-crisis in 30 years” that the industry is facing. Nonetheless McKinsey acknowledged that “The current regulatory structure protects [which] farmer interests in the form of fair and remunerable price (FRP) for sugarcane has led to Indian millers operating at uneconomical EBITDA (earnings before interest, tax, depreciation and amortisation) margins for the last three to five years. Many sugar mills are distressed with low profitability and ROE (return on equity) and have defaulted on loans, with significant arrears on payments to farmers.” Sugar mills in the country currently owe about INR 35,000 crore to banks and cane payment arrears to farmers are about INR 14,500 crore, at present.
“Words, words, words” Hamlet1 replies in response to Polonius’ question as to what is he reading. As the conference on Sustainable Sugar Forum2 proceeded on the morning of 16th June […]
According to his ministry’s calculations, Amran said, a sugar factory with a capacity to process 10,000 tons of sugarcane per day would cost about Rp 5 trillion (US$374.4 million) to build.The Agriculture Ministry has also run the plan by the Environment and Forestry Minister Siti Nurbaya, who agreed that the land in the three regions would be able to support the industry.
While the cane sector has been expanding cane acreage by 3% annually for the past years (acreage is forecast at 270,000 ha for 2015/16), it is the significant improvement in productivity that catapulted cane production. Sugar yield has increased from 6.6 t/ha, in 1990, to 10.8 t/ha during the last harvest season.
According to FO Licht’s latest forecast, the sharpest decrease in output is expected in South America, where total output is seen falling by 3.4 mln tonnes year-on-year to 44.2 mln. Bulk of the reduction is from Brazil where sugar output fell 6.8% on the year to 31.956 mln tonnes (34.267).