REPORTS

UP sugar mills seek bailout as demand plummets by one mn tonnes - Business Standard- With domestic sugar demand plummeting by a million tonnes (MT) in the current season owing to the lockdown, the Uttar Pradesh private millers have written to Uttar Pradesh chief minister Yogi Adityanath seeking an urgent bailout package for the beleaguered industry. Owing to the dip in sugar demand and consequent impact on the mills’ cash flows, the farmers’ arrears in UP have already crossed Rs 14,000 crore level. Since the crushing season in UP is expected to continue till the first week of June 2020, the arrears are likely to climb further. UP Sugar Mills Association (UPSMA) president C B Patodia has urged the CM to bailout the industry, by way of cash subsidy, which shall help augment our cash flows, so that, cane crushing operations and cane price payments continue.

 

Wilmar Q1 profit down 12.7% on market slide in investments But core profit is up by 22.5% on stronger consumer product sales and tropical oil downstream operations - The Business Times (Singapore) - Agri-business group Wilmar International saw profit tumble in the first quarter from mark-to-market losses on investment securities, it said in an update on Monday. Net profit was down by 12.7 per cent year-on-year at US$224.3 million for the three months to March 31, even as revenue rose by 4.6 per cent to US$10.9 billion. Core net profit was up by 22.5 per cent at US$306.5 million, from US$250.3 million in the year-ago quarter, on stronger consumer product sales and tropical oil downstream operations, Wilmar told shareholders. Even with the coronavirus pandemic, Wilmar said that it is still on track to list its China business in the second half of the year. The company said it is "cautiously optimistic that our second-quarter operations will not be significantly impacted" if the economy in that market recovers as expected.

 

South Africa's Tongaat, Barloworld in deadlock over starch business deal - Reuters - South Africa's heavily indebted sugar producer Tongaat Hulett is in a deadlock over the sale of its starch business to Barloworld over a condition set during the signing of deal, the two companies said on Tuesday. Tongaat agreed to sell the business to Barloworld for 5.35 billion rand ($290.70 million), including debt, in February.

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