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| Exchange Disseminated Time 18/09/2015 17:39:14 | Ponni Sugars (Erode) Ltd has informed BSE that Government of India, Department of Food & Public Distribution by communication dt. September 18, 2015 has made factory-wise Minimum Indicative Export Quota (MIEQ) for sugar under tradeable export scrip scheme. Accordingly the Company has been allocated MIEQ of 6612.50 tonnes for 2015-16 sugar season commencing from October 01, 2015. Such export of sugar can be in any grade of sugar, namely, raw, plantation white as well as refined.
The Government in this process has allocated an overall export quota of 40 lac tonnes with a view to achieve desired correction in inventory levels and thereby to improve financial liquidity of sugar factories.
Currently world sugar prices have considerable adverse price parity to domestic realization. Hence the directed export quota would entail significant lower price realization and loss to the Company. However domestic market prices can, be expected to record a robust price recovery by reason of supply side correction and consequent improved market sentiments. Thus the move of the Government is intended and expected to result in overall gain for the industry, though its financial impact cannot be readily quantified at the current juncture. |
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