Home Economy Oudh Sugar posts Rs.8.67 crore loss

Oudh Sugar posts Rs.8.67 crore loss


Kolkata : K.K. Birla Group company Oudh Sugar Mills Limited (OSML) made a loss of Rs.8.67 crore (Rs.86.7 million) for the quarter ended Dec 31, 2009 as against a profit of Rs.15.21 crore achieved during the corresponding quarter last fiscal (2008-09).

“Due to the acute shortfall in production during the 2008-09 season, the inventories were exhausted by November 2009, resulting in a fall in revenues during this quarter. This apart, the sugar industry delayed its crushing operations due to late monsoon, which reduced production during this quarter,” a company statement said here Wednesday.

OSML owns four sugar units – Hargaon Sugar Mills, New Swadeshi Sugar Mills, Rosa Sugar Works and New India Sugar Mills.

According to Chandra Shekhar Nopany, chairman-cum-managing director of the company, sugar prices are expected to remain firm in the short to medium term.

Sugar output in the season 2009-10, that began in October 2009, is expected to be less than 15.5 million tonnes, which is lower than the preliminary forecasts. The second year of short production is primarily due to reduction in sugarcane plantation, low recovery due to erratic rainfall and adverse weather conditions, particularly in Uttar Pradesh, the company said.

The consumption level of sugar is expected to remain at 23 million tonnes.