Chodavaram expects 15% rise in revenues on sugar decontrol

In the last two months, the sugar mill sold at Rs 2,800-3,200 per quintal, and supplied 10% of the stock to the government at Rs 1,900 per quintal

Chodavaram cooperative sugar factory expects its revenues to increase 10 to 15 per cent on the back of Centre's decision to decontrol sugar.

"We can now sell our stock in the open market. Also, we need not supply 10 per cent of our stock to the government at subsidised rate," said M Surya Bhagavan, managing director, Chodavaram Sugar Factory.

In the last two months, the sugar mill sold at Rs 2,800-3,200 per quintal, and supplied 10 per cent of the stock to the government at Rs 1,900 per quintal.

"The mill, at present, has 230,000 quintals of stock, which will increase to 300,000 quintals by May 15. Next month, we will conduct auction to sell our stock and expect between Rs 3,200 and 3,400 per quintal of sugar," he stated.

The mill has revised its sugarcane crushing target during this season owing to a drop in cane production.

Last season, it crushed 530,000 tonne cane and is targeting only 518,000 tonne this time.

However, this figure would decline further to 475,000 lakh tonne by the end of this season ie by May, when the current crushing season ends. It has till date crushed only 370,000 tonne.