Operating margins of sugar companies expected to moderate in FY22: ICRA


New Delhi, April 17 | The operating margins of sugar companies are likely to moderate in FY22 due to higher production cost and reduced export subsidy, ratings agency ICRA said in a statement.

Besides, benefits from improved distillery performance was also cited by the agency as a factor that might moderate operating margins.

“In the medium term, the government support measures for higher diversion of sugar for ethanol production would reduce the sugar surplus and support in improving the demand supply dynamics of the industry on a sustainable basis,” ICRA said.

As per the agency, domestic sugar production is expected to increase by 10 per cent to 30.2 million MT in SY2021 and outstrip consumption by around 4.2 million MT.

ICRA expects sugar exports at around 5.5 million MT supported by the export policy and the closing stocks are likely to remain higher than normative sugar stock levels of 6-6.5 million MT at around 9.5 million MT for SY2021 season.

However, the stocks are expected to be lower than the previous season at around 11.0 million MT.

“Given the sugar surplus scenario in the domestic market, any significant increase in the sugar prices is ruled out in the near term. However, the higher diversion of sugar towards ethanol and the remunerative pricing of ethanol is expected to result in an improved distillery performance in FY2022,” said Sabyasachi Majumdar, Senior Vice President & Group Head, ICRA.

“This is likely to be offset by the higher cane costs in FRP-based states, the lower recovery rates in UP in SY2021 (despite SAP being retained at previous year levels) resulting in higher cost of production and the decline in the export subsidy by 44 per cent Y-o-Y and result in moderation of operating margins for sugar companies in FY2022.”

According to ICRA, the sugar prices were around Rs 32,000 per MT in December 2020 and marginally declined to around Rs 31,500 – Rs 32,000 MT in January-March 2021.

“The moderate sugar prices are due to the dealers purchasing the sugar in high quantities in the anticipation of hike in MSP and now releasing the same into the market,” ICRA said.

“In 5M SY2021, the sugar prices have been lower by 2.4 per cent Y-o-Y at Rs 31.8 per kg.”

Accordingly, the subsidy per unit came out to be 44 per cent lower than the earlier one, that too against an increase in the global raw sugar prices in the recent months – December 2020 and January 2021 to 14.67 cents and 15.94 cents per pound respectively compared to 13.34 cents and 14.18 cents per pound respectively in the corresponding previous.

Currently, the export sugar realisation (inclusive of subsidy) is largely similar to the domestic sugar realisations further, the exporting mills would save on the interest and storage costs to the extent of sugar exported.

“This apart, export volumes will relieve the pressure on domestic sugar stocks and thus support domestic sugar realisations to a certain extent.”

Source: IANS

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How to Apply Coconut Hair Oil : 5 Ways to Getting Nourished, Shiny Strands

How to Apply Coconut Hair Oil : 5 Ways to Getting Nourished, Shiny Strands

There are very few hair care ingredients that are as amazing and trusted as coconut oil. For centuries, coconut oil has been used as a hero ingredient and grandmothers of Indian households swear by it. The buttery, thick oil has managed to make quite an impression among the international fashionistas worried about the health of their hair as well.

Coconut oil brings to you an impressive resume of natural beauty advantages for both the scalp and hair.

If you haven’t yet discovered the wonderful benefits of coating your strands in coconut oil, you are probably wondering why this oil is considered a hair care mainstay. Keep reading to know how exactly coconut oil can nourish your hair and the best ways to apply it for brilliant results.

What is coconut hair oil good for?

How to Apply Coconut Hair Oil
How to Apply Coconut Hair Oil

Here, take a look at some of the reasons that make coconut oil reign supreme in the department of hair care.

  • The oil is super moisturizing for your hair strands. The low molecular weight of coconut oil allows it to easily penetrate the shaft of your hair and get absorbed quickly, much better than other oils.
  • The oil has a high moisture content naturally, and therefore, it is effective in conditioning and moisturizing the strands. The oil doesn’t just sit on top of it.
  • The oil will also help your hair to retain protein because it contains a specific type of fatty acid, known as lauric acid. Nick Stenson, a celebrity hairstylist and Matrix’s artistic director, says that strands hold to proteins better when they are coated in coconut hair oil.

If you need more reasons – coconut hair oil is affordable and found ubiquitously, and does not contain any chemicals.

How to apply coconut hair oil for maximum benefits?

The application of coconut oil to hair entirely depends on how you wish to use it. For instance, a deep conditioning hair mask needs a different application than a split end treatment or detangler.

You’ll find below 5 ways to apply coconut oil.

  1. As a treatment of the scalp

Are you interested in a tension-relieving, relaxing scalp massage? Sounds interesting, right? You can relieve your tensed scalp after a tough day of work by wetting the pads of your fingers with coconut oil. Apply the oil gently onto your scalp and massage it gently for a few minutes. This will help the coconut oil to moisturize your scalp and promote healthy hair growth. A relaxing scalp massage using coconut oil is going to make your hair follicles happy and this will result in speedier and also healthier hair growth.

The reason why scalp massages promote hair growth is because they encourage blood circulation. This helps in delivering your hair follicles all the essential nutrients and also oxygen.

  1. As a hair mask

Coconut oil for hair is known to work wonders when it comes to deep conditioning hair treatments. You can create a DIY at-home hair mask by melting a few tablespoons of the oil over low heat and then transferring the oil to a bowl. Section your hair to properly massage warm coconut oil into the roots of your hair and saturating your strands throughout the tips. After that, use a wide-toothed comb to run through your entire hair so that your hair detangles gently. Then, cover your hair with a warm towel or shower cap, and relax for ten to thirty minutes. You can use your regular or mild shampoo to wash out the oil. Make sure to rinse properly.

Remember not to sleep while you are relaxing. You need to wash out the oil to prevent any build-up.

  1. To define your curls more prominently

Coconut oil is a worthy styler and it can help you look your best. Even if you don’t have the right outfit for the day, your hair is surely going to make heads turn!

A lot of people are partial to wash-and-go or an air-dry. If you are one of them, you can slide the oil through the strands of your hair after taking a shower. The oil will help to define the pattern of your curl while also reducing frizz and moisturizing your hair.

If you want your curls to keep their spring, you can make use of coconut oil in between washes. Your curls will be replenished and have a beautiful shine.

  1. To prevent your hair from tangling or to detangle 

A physical barrier is required for all hair types before detangling the strands, especially for those who have more breakage-prone, drier hair. Coconut oil is a brilliant detangling hair care product that you can use to prevent your hair from breaking. You can apply warm oil or you can use a spray bottle to spritz oil on your hair before detangling.

  1. To treat split ends 

Honestly, you cannot mend split ends forever. There just isn’t a way. You can snip them from time to time, but you cannot say goodbye to them forever. Another way to manage your split end problem is by applying coconut hair oil products. The oil will help to seal the cuticle and make your hair look shinier, healthier, and also less brittle. You might even notice density to your strands, especially if you have been noticing that your hair is tapered toward the bottom and looking thin.

The takeaway

Do you think that your hair can benefit from the use of fatty-rich coconut hair oil? You can give it a try in any one of the 5 ways above. And if anybody was wondering, the oil can also be used straight up on your strands.

However, if you are allergic to coconut in general, you might want to stay away from using this oil. In such cases, applying the oil may result in causing irritation.


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