GO on molasses sale may hit Vellore sugar mill’s profits

VELLORE: Officials of the Vellore Co-operative Sugar Mill are reportedly sitting fingers crossed over the state government’s orders for the sale of molasses at depleted rates despite this product not being available in other sugar-crushing states.

Sources told DT Next, usually, Vellore unit sells molasses during September-October when prices are high and also to ensure that space is available for future stocks as the mill plans to resume crushing in November.

Hence, mill officials were taken aback when the State government recently issued orders to sell 3,000 tonnes of the total 8,000 tonnes stock of molasses at Rs 7,800 per tonne.

When this raised a furore at the State sugar commissioner’s office, officials raised prices and ordered the sale of another 1,500 tonnes at Rs 9,300 per tonne, sources said.

“It is galling that during the same period last year, the mill sold molasses at Rs 11,000 a tonne and earned good profits,” an official pointed out.

What was annoying was that top sugar-producing states like Maharashtra, UP, and Karnataka have presently no stocks of molasses, and “hence we expected to reap a sizeable profit by selling at the rates we fix,” the official added. But their dreams were put paid to by the State government move, the official added.

Though orders have been issued, the stocks are yet to be lifted from the Vellore Sugar Mill premises, sources said and added that this move would seriously affect the profit of the mill this year.

Another bugbear for the unit is Tangedco still holding back dues for power exported to the State grid by the Vellore mill’s co-generation plant. “Tangedco owes us around Rs 39 crore over three years and whenever we approach them to pay up they promise to do so but never keep their word,” sources said.

BlurbAnother bugbear is Tangedco still holding back dues for power exported to the State grid by the Vellore mill’s co-generation plant