ENA MSME 2022-12-29 07:47:55 <p><span style="font-size:14px"><strong>New Delhi, Dec 29 (KNN)</strong> The micro, small, and medium enterprises (MSMEs) in the sugar industry are majorly impacted by the major global and domestic events and as a result their margins are hit by flat product prices.</span></p> <p><span style="font-size:14px">Despite the increase in prices of sugarcane which is the key raw material, there has been no equivalent increase in the price of sugar, as per Business Standards CRISIL SME Tracker.</span></p> <p><span style="font-size:14px"><strong><a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a></strong></span></p> <p><span style="font-size:14px">Dominating the sugar industry, MSME segment only has standalone sugar mills and will face lower margins compared with non-SME counterparts, which have integrated mills, including power and distillery units, said the report.</span></p> <p><span style="font-size:14px">Owing to the likely revival of both major producers, Brazil and Thailand the global supply is to ease.</span></p> <p><span style="font-size:14px">Domestic sugar producers saw 14 per cent revenue growth in FY22, as a decrease in output from these countries after the sugar season (October-September) boosted demand for Indian produce and lifted its prices in world markets.</span></p> <p><span style="font-size:14px">On domestic front, export momentum continued in the first half of FY23. However, the government imposed a cap on exports at 11.2 million tonnes (MT) for the 2022 sugar season.</span></p> <p><span style="font-size:14px">For the current season (2023), the government has increased the fair and remunerative price for sugarcane by 5 per cent to Rs 305 per quintal for a recovery rate of 10.25 per cent.</span></p> <p><span style="font-size:14px">Due to reduced domestic inventory the cap for the current season has been set at 6 MT for exports.</span></p> <p><span style="font-size:14px">Since it will still be adequate for domestic consumption, we expect an increase in the export cap to 8.5 MT by the end of the first half of this sugar season, said the report.<em><strong> (KNN Bureau)</strong></em></span></p> 31735 https://knnindia.co.in/news/newsdetails/msme/msme-sugar-producers-struggle-with-lower-margins 2022-12-29 07:47:55 knnindia.co.in