Piccadily Sugar & Allied Inds Ltd Management Discussions

Report Sugar season 2024-2025

Indias sugar production for the 2024-25 season is projected to be around 264.00 lac tonnes, a decrease of 19% compared to the previous years 310.00 MT. This decline is primarily attributed to factors like increased sugarcane diversion for ethanol production and reduced cane availability.

Sugar season 2024-25 started with the opening stock of 78 lac tons and after adding a current years production total stock is estimated is around 342 lac tones against anticipated consumption of 280.00 lac tons and exports of 8.00 lac tones. As a result the closing stock of sugar as on September 30, 2025 is estimated to be around

54 Lac tones which is sufficient for 2 months consumption. [Source: Indian Sugar & Bioenergy Manufacturers

Association (ISMA)]

In the Ethanol Supply Year (ESY) 2024-25, India has seen significant progress in its Ethanol Blended Petrol (EBP) program, with an average ethanol blending rate of 18.6% between November 2024 and April 2025, . The program, which aims to reduce reliance on imported fossil fuels, has seen increased ethanol production capacity and investments in distilleries across the country. OMCs (Oil Marketing Companies) have also been procuring increasing quantities of ethanol, including biodiesel.

The all India blending percentage touched 19.83 % in March 2025 against a target of 20 % by 2025.

1) Sugar consumed in moderation is a part of a healthy, balanced lifestyle. While this isa fact, there is a lot of misinformation floating all around making ‘sugar the villain and blaming it solely for some lifestyle diseases. This negative perception around sugar is unfortunately spreading like wildfire amongst the gullible and misinformed masses in our country.There is absolutely no scientific evidence or any research paper which concludes or establishes that consumption of sugar in itself leads to any particular disease, be it diabetes, obesity or dental caries.

2) Government guideline regarding drinking is injurious to health was effect the revenue of the company.

Company is expecting to operate its new Ethanol Plant in the 3^rd quarter of financial year 2025-26. This will enable the company significantly boost the revenues of the company.

The steep escalation in the prices of sugarcane & raw materials will adversely affect profitability of sugar mill & other products of the company.

Competition from the other distilleries in the state of Haryana may affect the sale of Country Liquor.

The auditor have felt that the company has a reasonable system of authorization at proper levels with necessary controls on the purchase of sugar cane, issue of materials and components & other related system of Internal control is commensurate with the size of the company. They also felt that the company has a reasonable system of recording receipts of raw materials and components and the company is recording the sales and purchase through the software. The Software engineers regularly check software program me.

The company has appointed regular staff of 24 persons in various departments along with contractual & seasonal staff for the efficient working of all the units of the company.