The Hindu Business Line : `Sugar prices to remain high'

Simbhaoli Sugar has come out with its results, posting a 10 per cent increase in its net sales for FY06. The company is also having some capex plans, which will get completed by March 2007.

On sugar prices, the Director Finance of Simbhaoli Sugar Mills, Mr Sanjay Tapriya, says that given the demand and supply situation, the prices will remain high.

Excerpts from CNBC-TV18's exclusive interview with Mr Sanjay Tapriya:

Going into FY06-07, what is the kind of inventory you have at this point?

We are at the year-end. We are having nearly 8,00,000 quintals of sugar and about 5,00,000 quintals of raw sugar, which is being processed at present. So in total, we will be having 13,00,000 quintals of sugar, which we will be selling in the current financial year.

What would that amount to, in terms of a target for FY07 either in terms of sales or net profit?

It is too early because we have just completed two months of this financial year. It is going reasonably right because the sugar prices are going to remain high. Given the demand and supply position, I see no reason why it would go down.

There was a 25,000 million tonnes export contract, which was to be executed by April 2006. When was this executed finally and does that also reflect in your numbers?

No, because most of our exports have been targeted and done in this current quarter. In fact, we have entered into an agreement for exporting 25,000 tonnes of white sugar. We have nearly done 24,662 tonnes till now. But now probably, we will have to slow down because of the onset of monsoon. But this programme will continue in the future.