Page 45 - BCML AR 2019-20

India entered a period of complete lockdown except to countries like Indonesia where Indian
from 24th March, 2020; the Indian sugar white sugar demand remained robust. In the
industry was permitted to crush cane on subsequent months, realities normalised and
the grounds that sugar was categorised exports resumed.
as an essential commodity. However, the Similarly, ethanol demand declined in the
sugar industry was affected by a shortage initial lockdown period owing to restrictions in
of intermediate products like lime, sulphur the pan-India movement of automobiles. The
and polypropylene bags, among others. The result was that spare ethanol storage capacity
government responded with speed to the across different pan-India locations was The ethanol
needs of the sugar industry and permitted consumed;, the government diverted supply business will
inter-state transportation of necessary to alternative storage locations and from May
materials like lime, facilitating virtually- 2020 onwards, ethanol sales by sugar mills continue to
uninterrupted operations. generate a
improved considerably.
BCML benefited from this government The outcome of the crisis notwithstanding, surplus by the
permission, continuing to crush seamlessly BCML expects to largely protect its virtue of being
barring occasional challenges related to fundamentals owing to the support provided delinked from
labour availability and a marginal increase in to the sugar business through the prevailing crude oil prices.
operating costs. Besides, at a
minimum support price.
The Company was competently placed to Looking ahead, the ethanol business will 10% blending
address the problem given that a majority of continue to generate a surplus by the virtue of rate, India
the factory employees resided within adjoining being delinked from crude oil prices. Besides, requires 5.1
colonies. Besides, the Company took adequate at a 10% blending rate, India requires 5.1 billion billion litres of
precautions comprising the use of masks, hand litres of ethanol against an installed capacity ethanol against
sanitisers and social distancing.
of around 3.85 billion litres, indicating an an installed
The principal challenges faced by the extensive under-supply. capacity of
Company comprised a decline in institutional As a responsible corporate citizen, BCML
demand during the lock-down. However, as assisted the community proximate to its around 3.85
realities partly normalised once the lockdown manufacturing operations. The Company billion litres
was partially relaxed, the Company was able to manufactured hand sanitisers, distributed free
exhaust its sales release quotas for March and to peripheral communities. The Company
April 2020.
is presently manufacturing hand sanitisers
The demand decline of the first two months for commercial and charitable purposes.
of the current financial year resulted in a It provided food packets for labourers
higher inventory. Exports were affected and vehicle drivers arriving at its plants. It
during the lockdown following restricted undertook to sanitise the local police station,
truck movement, worker unavailability of at railway station and bus stops for the benefit of
transit stops and port congestion. Besides, citizens. It stood by employees and refrained
global sugar realisations declined owing to a from retrenchment or salary reduction.
higher cane quantum being diverted for sugar
production in Brazil following a crash in crude
oil prices. The result was that Indian sugar
exports became unviable in the global market

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