Sugarcane Pricing Policy

Friends,

The govt has firmed up the sugarcane pricing policy and as per reports the new FRP (fair and remunerative price) will be for whole India and any extra amount paid to farmers as per state orders will be footed by the concerned state. On the face of it this seems OK but there is a basic fault in fixing similar FRP for whole of India. I would have to check in detail and from reliable sources to know what actually is the provision before commenting further.

The rumour is that Bajaj Hind management may acquire the controlling interest from Saraogis of Balrampur Chini. This is strange but also that such deals would be in air as the Indian business scene is converting to a place where consolidations will be order of the day. This will happen more when the managements would become more honest and less interested in transferring benefits to themselves through various means and schemes. If this happens there will no covert need to keep presiding over the business activity when the love for it missing. The cost of the buying the stake from Saraogi will be about Rs 1700 crs but analyst are concerned about the funding arrangement. In my opinion its not a worry at all for the sources of funds are many and even the Saraogis may agree for payment scattered over time.

The US markets have gone up by about two percent on back of quarterly growth for over 2.5pc and lower jobless figure. I think there is an absence of thoroughbred players around the world as such movements just for some announcement is a strange practice. It happens in India but should not happen in markets like US

Hari Om,
Krsna Khandelwal

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