Tough times for sugar mills as demand from business consumers dwindles

Low offtake of sweetener as cold drink units, ice-cream factories, and sweet shops remain shut due to lockdown. No offtake from liquor plants, paper units and OMCs for byproduts either

Sugar mills are passing through challenging times due to demand destruction of core products and byproducts following the closure of cold drink units, ice cream fattories and sweet shops due to the seven-week lockdown.

Demand of sugar byproducts such as rectified spirit, molasses and extra neutral alcohol (ENA) has evaporated as factories making potable alcohol remain shut. Shutdown of paper mills has pared tge demand for bagasse. Unfortunately, oil marketing companies (OMCs) have reduced offtake of ethanol for blending with petrol, saying fewer petrol pumps remained operational during the Covid-19 induced lockdown period, resulting in lower consumption of fuel.

This has resulted