"The shortfall in Tamil Nadu could be only partially made up in Karnataka and Andhra and therefore we expect that there will be a marginally lesser cane by about 10 per cent in the next financial year," said V Ramesh, managing director of EID Parry in a recent earnings call.
Meanwhile, the government of India (GoI) has decided to give licenses to various companies in south, west and east India for import of raw sugar at zero per cent duty and out of the total quantity of about 5 lakh tonne the government is allowing to import, EID Parry has been allotted 64,000 tonne. The company has contracted to buy the raw sugar from Brazil and it is expected to come in by June 30.
"...because of the import of raw sugar, for which we will be entitled to 64,000 tonnes, overall sugar production and sales may not be very different from the current year," he added.
During the year ended March 2017, the company has crushed 44.4 lakh tonne of the cane as compared to 55.9 lakh tonne in the previous year, during which it had an overflow of sugar from the previous season. Due to the yield drop in Andhra Pradesh as well as loss of cane because of competition and very poor south-west monsoon in Karnataka, and very less water availability in western Tamil Nadu, the cane volumes came down substantially in the last quarter of 2016-17.
The company has posted a net profit of Rs 283.61 crore during the financial year 2016-17, as against a net loss of Rs 92.11 crore during the previous financial year. The total income during the year declined to Rs 2,631.21 crore from Rs 2,785.59 crore during the previous year.