EID Parry (India) Ltd (NSE: EIDPARRY) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Unidentified Speaker
Muthiah Murugappan — Whole-Time Director and CEO
Y. Venkateshwarlu — Chief Financial Officer
Balaji Prakash — Chief Operating Officer
Abdul Hakeem Ashiq J — Chief Operating Officer
Analysts:
Unidentified Participant
Sanjay Manyal — Analyst
Rushabh Shah — Analyst
Ritwik Sheth — Analyst
Manoj Shah — Analyst
Manasvi — Analyst
Yash Visharia — Analyst
Manoj Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the EID Parry India Limited Q4 and FY25 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Manyal from Dam Capital Advisors Limited. Thank you. And over to you sir.
Sanjay Manyal — Analyst
Hello everyone and warm welcome on behalf of Dam Capital to the Q4FY25 earnings call of EID Parry India Limited. We thank EID Parry’s management for giving us this opportunity to host this call. On the call today we have with us Mr. Muthaya Murgatman, whole time director and other senior management team of Eid Pari. I hand over the call to the management for opening remarks followed by question answer session. Thank you and over to you sir.
Muthiah Murugappan — Whole-Time Director and CEO
Good morning Sanjay and thank you. Good morning everyone. It gives me great pleasure to be a part of this and this call to share with you and update all of you on the global as well as the Indian sugar scenario and also talk about the Q4 performance of the company. I’ll start with the global scenario. The 2425 global sugar deficit widened by 1.5 million tonnes to 3.9 million tons due to production cuts in India, Pakistan and Thailand. While the 2526 deficit projection increased to 1.5 million metric tons signaling continued tightness. The 2425 raw sugar trade flow surplus rose by 726k metric tons to 2.92 million metric tons with most of this concentrated within Q3 of 2025.
The projected trade flows for white sugar in 2425 indicate a reduced surplus of 642k metric tons down by 215k metric tons amid a shift to a deficit starting in 2026. The benchmark New York number 11 may contact oscillated between 18 to 20 cents per pound finishing the month 44 points higher. The weather forecast rose above average Ames in center in South Brazil. In the short term this could disrupt harvesting and reduce industrial yields. But in the long term it could be beneficial for cane development. The US dollar index fell significantly by mid March amid tariff concerns which could influence agricultural commodities, sugar included.
On the bullish side, the speculators net spot position was reduced to the lowest level since mid December 2020. 4 Mostly on fresh pine New York no. 11 price forecast has been lowered from March 24 with the base case at 18.5 cents per pound to attract demand amid a significant surplus estimated in raw sugar trade flows. White premiums remain volatile ending April 4% lower with expectations to trade between $105 to $120 per metric tonne reflecting the tightening white sugar surplus, while structural deficits provide long term price support near market near term market dynamics remain balanced between Brazil’s harvest progress, white and raw arbitrage opportunities and evolving weather patterns that could impact production.
The market continues to navigate these competing forces with traders closely monitoring Brazilian crushing rates and potential policy shifts that may affect global trade flows in coming months. I’ll now move to the Indian scenario. As of April 30, India sugar production stands at 25.7 million metric tonnes with 19 ML still crushing predominantly in UP, Maharashtra and Tamil Nadu. While early season yields were impacted by weather conditions, improved recoveries on the back half of the main season have supported production. The Indian Sugar Mills and Bioenergy association has maintained its full season estimate of 30.3 million metric tons of contingent on an additional four and a half to 5 million metric tons from the May operations and the special season which goes from June to September.
Domestic consumption is projected at 28 million metric tons with 1 million metric tons being allocated for exports. 3.8 million metric tons has been diverted to ethanol production on the back of this closing stocks estimated at 5.5 million metric tons for the sugar year 2425. Looking ahead with planting numbers looking good in the three key states and a normal monsoon which has already started early expected. This augurs well for the upcoming main season. Crush, TN and AP however still will remain challenged because of lower planting given this or given that there will be a positive delta in crush is expected to be more sugar in the domestic balance in the upcoming two year.
On this backdrop, some of the key factors to be monitored from a policy and a regulatory perspective include firstly sugar pricing as the new season starts and as to whether exports will be considered given a larger crop and crush. On the ethanol side, we also need to monitor whether on molasses based ethanol whether there will be any pricing divisions at all as they have not been moved up in over three years despite consistent FRP increases. There’s also an indication of more saliency and emphasis on grain ethanol and lastly on ethanol. Whether they would be curbs or not on the import of US ethanol will also need to be monitored whether the curbs will be lifted would need to be monitored as part of the ongoing trade discussions between the two countries.
I now hand over to Venkat, our CFO to take you through the operating parameters and performance of the company. Q4 and XY 2425.
Y. Venkateshwarlu — Chief Financial Officer
Thank you. Thank you Muthu and good morning to all participants. The great pleasure to be part of the analyst call and to share the key information of the operational and financial performance of the company. I would like to share with you the key operating parameters of each segment. The sugar operations, the crushing operations in Karnataka, Tamil Nadu and Andhra Pradesh we have successfully completed for the quarter we have we have done about 122 days overall in a Q4 ministry one 156 days of last year. So we crushed about 17.4 lakhs metric tons of K against the 19.79 79 lakhs metric tons of the corresponding previous quarter.
The grass gross recoveries are improved. We are at 10.89% for the quarter. Again I see 10.69% corresponding quarter of the previous year we produced about 1:55,001 lakh 55,000 metric tons against the 2 lakh 4,000 metric tons of the corresponding the previous quarter. So overall gain cost is about 3,768 rupees per metric ton. Agnes 3,504 rupees per metric ton of the corresponding quarter of previous year. The increase is mainly on account of the FRP increase from 3150 to 3400 rupees. As far as the sewer volumes is concerned will be sold about 11 lakh 3,000 metric tons including our consumer pack division against the 1 lakh 5,000 metric tons of the corresponding previous year.
Average selling price was about 39.37 excluding the consumer pack against the 37 rupees 52 from the current period. Previous previous periods we carry closing stock about 1 lakh 1.9 lakhs and the value added 37.5 to 80 that he had to be successful. So as far as the revenue is concerned from sugar operations We’ve done about 480 crores organized the 415 crores of the corresponding the previous quarter. This is telling a degrowth of about 2% or so mainly because of an account of release quota. As far as the consumer pack is concerned we achieved about 195 crores of the revenue.
This is including the non sweetener portion of 65 crores and the sugar is about 130 crores. Again 135 crores of the corresponding period previous period. As far as the cogent is concerned, we generated about 11456 lakhs units against 1746 lakhs unit in the corresponding period of the previous year. As far as exports of the then power is concerned about 732 lakhs units. As at next 9 or 3 lakhs units in the corresponding period of the previous year. The average power tariff is for the current quarter is about 4.3 per unit. I mean it’s 4.84 per unit in the corresponding period of the previous quarter.
So the revenue is concerned about 57 crores for the power for the current quarter again at the 77 crores of the corresponding period of the previous year. It’s a good story on the distillery because we produced we sold about 3.89 crores of alcohol against the 3.31 crores liter of the corresponding previous quarter of which about 1.31 crores is EMA 2.57 crores. Latest is the investigations are good. Their current quarter quarter realized Excellency is about 66 rupees 98. About 67 rupees against the TUS previous year realized exchange is about 64 rupees 49 paisa. So though there is no increase in ethanol prices but the average relations have been increased.
So mainly the contribution has come from the price increase in ethanol in Tamil Nadu and Karnataka. As far as the revenue is concerned about 268 crores, 224 crores of the corresponding previous year quarter. So as far as the neutral segment is concerned, the Indian operations current quarter turnover was about 9 crores against the 10 crores in the corresponding period of the previous year. The consolidated level, the turnover is about 60 crores against the 70 crores in the corresponding period of the previous. As far as the refinery business is concerned, the revenue or the gross the total revenue is about 1019 crores against the 899 crores of the previous period.
As far as the loss is concerned about 99 crores against 9 crores in the corresponding previous period. Refined sugar Production is about 1.17 lakhs metric tons against previous period 2.49 lakh metric tons. Refined sugar sales is about 2.05 lakhs metric tons against the previous period is a 1.5 lakhs metric times. So the inter corporate deposit which is given by the 200 crores by the year it remains the same. As far as external borrowing is concerned about 590 crores against the previous previous period is about 95 crores. So as far as EBITDA is concerned for the current quarter It’s a negative about 38 before exception about 38.12 crores against the corresponding previous period is about 56.21 crores is the profit EBAT before exceptional will be about 49.31 current quarter compared to the previous period it is a 45.53 crores of profit.
EBT is about 99 crores negative EBNAC 9 crores of the corresponding previous year of the law. So that’s it from my side. So the floor is open for the question.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove the question queue you may press star and two participants are the question handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question 2 assembles. The first question is from the line of Rishabh from RBSA Investment Managers. Please go ahead.
Rushabh Shah
Hello.
Muthiah Murugappan
Yeah, good morning.
Rushabh Shah
I just had a question on the. EPG division on the non statement side. Strategy wise, are you looking to enter this organic or chemical free category? Seriously over the next two, three years what is your thought process Given that. We have good access to farmlands from. Our group companies.
Balaji Prakash
So. Hi Rishabh, this is Balaji. I head the consumer products business. As of now we are present in the conventional staples business and we don’t have any plans right now to enter the organization or the chemical free staples at this point in time. Maybe at some future situation we’ll consider it. We haven’t yet optimized the supply chain to the extent of going up to the farmers as of now there are no plans for that right now.
Rushabh Shah
And secondly, I’m just looking at one of the slide. In this sweetener category the distribution reach. Has increased by 10x over the last. Four years while the revenue has gone up only 3x. So I believe there is a lot. Of potential to increase the revenue per distribution reach. So what steps are we taking to. Increase that and what are the new. Products that we are adding in the. Non sweetener category in this coming year?
Balaji Prakash
So I think the outlet increase is always higher than the revenue increase because the incremental new outlets don’t contribute to revenue in the same proportion as the existing outlets which is a normal understanding. So that is the reason why you see that discrepancy. And in terms of new products we are still working on Our new product plans and we will come back to you as and when they are ready.
Rushabh Shah
Okay, thank you.
Balaji Prakash
Thank you.
operator
Ladies and gentlemen, to ask a question please press star and one at this time. I repeat, participants who wish to ask questions may please press star and one at this time. We take the next question from the line of Sanjay Manial from Dam Capital. Please go ahead.
Sanjay Manyal
Hi sir, just want to understand about the availability of sugarcane for the next season. Given the fact that rains have been good and water levels have been pretty decent. So what it seems that production could be a bit higher. So what could be the crushing number for us and how that would translate into the ethanol volumes for the next year?
Abdul Hakeem Ashiq J
Good morning, this is Ashik here. Business current timely monsoons in Karnataka and Tamil Nadu is giving us a lot of comfort. We are still in the stage of planting progress. Probably by end of next quarter we will have a good view of any upsides that could be there. Currently we are holding a neutral outlook with the positive bias.
Sanjay Manyal
Okay. Okay. And sir, just also want to understand if you can give some bit about the ethanol volume and how much now could be the proportion of grain ethanol or maize ethanol. And how are the economics in maize ethanol and also that matter grain ethanol in South India.
Y. Venkateshwarlu
Sanjay, if you look at our distillery capacities about IVIT to KLPD. So. So that will give you about 18 crores liter or so. Okay. As far as the composition of ethanol and ENA is concerned. So that’s given it will be dynamic. Dynamically we’ll be deciding it which is the more lucrative. Okay. As far as the ethanol is concerned to the extent of the OMC commitment we will be honoring it. So balance we will be diverting it to the ena. As far as the grain is concerned, you are aware of it because we have an only one facility at about AP that is about 3.5 to 4 crores liters.
If you produce that is also depends on the which whether it is a syrup or the grain or something. It’s a multi feed distillery. We can’t comment anything that. The 25, 26 what could be the grain exactly depends on the availability of the cane and the government outlook on the price increase in case of ethanol and behavior.
Muthiah Murugappan
So Sanjay, Gustav here to your question. In terms of the economics of grain ethanol in South India. I think it’s helpful for the economics when you actually have an integrated facility because your sugarcane ecosystem gives you a benefit on fuel. And ideally we have had lower than expected cane feedstock in ap. But you know, as that situation improves and that would certainly benefit the operations in terms of how standalone ethanol distilleries are faring in the South. There isn’t too much public data available on that, so it’s hard to comment. In a broader sense, we are hearing, you know, more saliency and emphasis on grain ethanol.
This is a change from when, you know, the ethanol blending program was conceptualized. In the last two and a half years there’s been more of a saliency towards grain, which is what we are seeing right now. But that said, we are moving into a period of abundance on the sugarcane side after two years. So given all of these are agri feedstocks, we will have to wait and watch whether this increased saliency towards an emphasis on grain ethanol will remain or there will be a shift towards sugarcane. Again, given these are agri based feedstock, these tend to usually be dynamic situations.
Sanjay Manyal
So just one more thing on the ethanol part, this is almost like a second year where we haven’t really received any hike in ethanol prices. What is the I’m sure your discussions must be happening with the government about the policy because till the time the 20% blending was not met, I think Kermit was pretty keen to increase the prices. Do you think it’s a halt from that perspective that there is no increase in prices? So probably this 20%, probably blending will stay here and will not move forward.
Muthiah Murugappan
So Sanjay, I think you’re asking a couple of questions. I think the last time in Venkat, correct me if I’m wrong, we saw increase on ethanol offtake prices was late 2020. So we’re almost going to be three years without any increase in molasses based ethanol prices. Barring some marginal increases on the sea heavy price, it’s not very material. So that is a challenge given FRP go up consistently every year and last year they actually went up by 8%. So this is what has challenged the industry and also brought EBITDA margins down significantly on the back of recently concluded CAPEX programs.
I think this has been well represented by the industry body to the policymakers. I think they have also been receptive in their listening and I think they do understand. It really remains to be seen in terms of what kind of policy calls are taken around this. I can say that we remain hopeful given that there is an abundance of cane coming up and so on. In terms of the blend, I think we’re up to about 18% right now. And the auto industry also is seemingly prepared for up to a 20% blend. So whether this blend will move up beyond 20%.
Again, that’s something which is in a concrete basis yet to be, yet to be determined. We are also concerned, I will say, by the fact that there are conversations as part of a broader US India trade discussions that the lifting of curbs on import of US Ethanol is being considered. We don’t know the outcome yet, but I think the industry body has officially also expressed their concern on this matter to policymakers across the board. I think such a move will certainly be negatively impactful to the industry at this point in time.
Sanjay Manyal
So in the same context, if I can just understand the economics means the what if the import of ethanol happens to India? What would be the landed price and will it be so much difference? Is there significant difference that you know that, that those imports are attractive?
Muthiah Murugappan
I think if you look at U.S. current export prices of U.S. ethanol, I think it’s to about, I would say early 40s. I did check this earlier this week. So of course ethanol is subsidized in India and I think US Prices are currently much lower.
Sanjay Manyal
Right.
Muthiah Murugappan
So that obviously. So you know. Yeah, yeah, that obviously impacts the economics.
Sanjay Manyal
Thank you. Thank you very much for that.
operator
Ladies and gentlemen, to ask a question, you may press star and one at this time. I repeat, to ask a question, please press star and one. Now we take the next question from the line of Yashvisharya from Mavara Asset Management. Please, please go ahead. Yes, sir, you are online. You may unmute and ask the question.
Unidentified Participant
Hello. Thank you for the opportunity. Am I audible?
Muthiah Murugappan
Yes.
Unidentified Participant
Yeah sir, just wanted to get your sense on the consumer products business. So how are we seeing this business grow over the next two to three years? What is the roadmap that the company is envisaging on this business?
Balaji Prakash
Yes, so. Hi Yash. So the consumer product business. We will. Our focus on the consumer product business will continue with sustained aggression on distribution growth and volume growth. Branded packaged food business in India is growing at about 12% annually. We will be trying to beat that estimate in terms of our growth rates and we will continue to keep focused on building the brand and driving the distribution.
Unidentified Participant
Sure, sir. So are we focusing on any specific geographies like only South India or we want to grow Pan India. How are we seeing the group?
Balaji Prakash
So right now we are present in the south of India and as the market demand picks up, we will be expanding across to other geographies. Right now we are present in the south of India.
Unidentified Participant
Okay. And sir, are we planning to tie up with any of the giants like say D Mart or any other Quick commerce for, you know, pick up in the volumes.
Balaji Prakash
So these are channels and we don’t do tie ups with them. But we are present in all these channels in e Commerce and DeMart. Our products are being sold like a conventional channel. We will be managing them.
Unidentified Participant
Understood? Understood. So sir, basically apart from sugar and distillery, can we say that maybe three or five years down the line the consumer products business will be one of the important core segments for the company, you know, in the growth.
Balaji Prakash
Yes, definitely.
Unidentified Participant
Okay. Okay. Thank you so much. Thank you.
Balaji Prakash
Thank you.
operator
Thank you. Ladies and gentlemen, to ask a question you may press star N1. I repeat, participants who wish to ask questions may please press star N1. At this time we take the next question from the line of Ritvik Sheth from oneup Finance. Please go ahead.
Ritwik Sheth
Hi, good morning sir. So just a couple of questions. Firstly on the debt front, sugar business and refinery, would it be possible to give the split for long term and short term debt?
Muthiah Murugappan
As far as the sugar business is concerned, we have about 850 crores as a short term debt. About 205 crores is the long term debt. So as far as the refinancing business is concerned about. Fine. Anti crores is the short term debt and the 200 course will be the long term debt. The long term debt is the basically the from the ICD which is given by
Ritwik Sheth
external debt is only 5 integrals which is completely short term.
Muthiah Murugappan
Yeah.
Ritwik Sheth
Okay. And so what is the outlook on the refinery debt and refinery business as well for FY26? If you could give us some favor on that.
Y. Venkateshwarlu
I have a quick Suresh comment here. In refinery business went through challenging times in the second half of 2025. Basically on account of the fall in the drastic fall in the white premium that happened because of increased supply that came out of European Union, Ukraine and some extent out of Pakistan as well. Going forward in FY26 there is a spillover effect of that start the financial year. However, as what Mu explained in his commentary, there is a tightening of the supply chain that’s happening.
Most took break because of this low viuman situation. So there is a correction as far as the supply side is concerned. So we are seeing the VI going back may not be up to the levels that what we witnessed in FY24, but definitely much better than FY25 level. So that will increase the run rate of the refining operation. That will also help us to publish the effectively.
Ritwik Sheth
Okay, got it. On the crushing, I’m not sure whether you mentioned in the opening remarks, but what is. What is the crushing that we expect for FY26 for Eid? Barry,
Y. Venkateshwarlu
normally we will not look at, will not tell about the futuristic but I was Ashik mentioning that this time the mansus is good but we can come back to you maybe the in the September or something. What should be the probable?
Ritwik Sheth
Thank you. Thank you and all the best sir.
operator
Thank you. Participants who wish to ask questions may please press star in one at this time. Next question is from the line of Manoj Shah from Laxgov Investments. Please go ahead.
Manoj Shah
Thank you for the opportunity sir. Just wanted to check on what would be the capacity utilization for ether now because recently new capacities have come and what you expect in FY26 capacity utilization.
Abdul Hakeem Ashiq J
Hi, as Venkat pointed out we have 582KLPV. We are currently running at about 90 80% plus capacity utilization. We expect that to continue and our endeavor is to move the needle substantially up because the business the benefit is there in utilizing our assets efficiently and we have an opportunity unlike the sugar business. So 90 to 95% is the kind of capacity utilization we are looking at.
Manoj Shah
Regarding sugar refinery, there was an impairment taken up in this year. Can you comment a little bit on that? Is it why impairment has been taken? And also there is some news that government will have some control over raw sugar. Also there are some news if you can come into that.
Muthiah Murugappan
So I’ll take the first one. There’s been a infusion which has been made and that is for debt reduction and you know, improving the network. At the same time the impairment has also been taken because of the challenged financial performance of the business. You have seen the spreads, I think Suresh Kannan spoke about it have drastically come down. This has led to as Venkat described a very weak financial performance. So we were required to take this impairment.
Manoj Shah
Basically we have lower than the book value. So we have taken impairment based on that.
Muthiah Murugappan
Yes, it’s future cash flow based formula which has been used. Yes.
Manoj Shah
Okay. And second part on this washable there was some news that the government would have some control over that as well. There are some news. You can comment on that.
Muthiah Murugappan
You might want to comment. I not.
Abdul Hakeem Ashiq J
In the sugar control order they have brought in some amount of control in declaring the raw sugar with the manufacturers. And also they have brought units larger than I think 500 TCD for jaggery crushing Kandasari into the ambit. We believe both are welcome move to make the sugar balance numbers and create a level playing field amongst various players. And as an organized players we are Open to the direction in which they are moving.
Muthiah Murugappan
I’m not sure there’s much of an implication on the refinery. I don’t know. Suresh Khanan, you want to clarify?
Unidentified Speaker
Yeah. Yeah. This sugar control order is basically for governing the domestic production.
Muthiah Murugappan
Yeah.
Unidentified Speaker
Is entirely on export. So either imports through advanced license or through social economic loan. These do not come under the of.
Manoj Shah
Fine. Thank you.
operator
Thank you. We take the next question from the line of Manasvi from ICICI Bank. Please go ahead.
Manasvi
And what have been the key reasons. Because of which there has been these. Negative income and how is exactly planning on.
Y. Venkateshwarlu
Can you stop? The background noise is coming. We are not able to hear you properly.
Manasvi
Is it better now?
Y. Venkateshwarlu
Yes. Yes, please. Can you please ask your question again?
Manasvi
Yeah. I would like to know if you go for the sugar segment like if you can highlight what are the key reasons because of which there has been negative income for the FY25 and how is the ID Pari planning to mitigate the same in the upcoming financial year for the sugar segment?
Abdul Hakeem Ashiq J
I’m trying to take the question. Fundamentally the challenge has been on sugar realization because the government has been holding the MSP while the FRPs have been going up year on year. As already pointed out. We continue to shift our portfolio towards refined sugar and institutional sales couple coupled with our foray into consumer products. These should shore up the realization to help us manage the pressures on cost line. The other challenge we continue to face is on the release quota. The government has a particular methodology and they have been refining it over years in terms of giving us a quota of sugar that we can sell.
We continue to work with the policy maker in terms of helping the industry in giving higher release quota which will automatically take care of the business pressures. The last one is obviously from the supply side. As already pointed out by a gentleman earlier. We have a positive bias towards cane availability and increased crush base will also leverage the cost in the P and L and give better results broadly. At a large view. These are the three ways in which we have. We are looking at approaching in terms of resolving the pressure. Thank you.
operator
Thank you. Next question is from the line of Yash Visharia from Mavara Asset Management. Please go.
Yash Visharia
Thank you for the opportunity. Again. So just sorry if that’s a repeat question but with respect to this subsidiary Perry Sugar Refinery India Private Limited. So we have an exceptional item of 427 crores for the year of FY25. And we are again infusing around 350 crores in the same Same subsidiary. Is that understanding correct?
Muthiah Murugappan
That’s correct.
Yash Visharia
Okay, so, so, so what is the reason for writing of 427 and again re infusing the such big amount in the same company?
Muthiah Murugappan
I think Yash covered this earlier. The impairment has been done on account of poor financial performance. I think that was looked at and I think you were required to take that impairment in terms of the infusion. It is to strengthen the net worth of the company and also bring about some debt reduction. This is the reason for the infusion.
Yash Visharia
Understood, sir. Okay, thank you.
operator
Thank you. I would like to remind participants that they may press start on one to ask a question. Next question is from the line of Manoj Shah from Laxgov Investments. Please go ahead.
Manoj Shah
Yeah. Sir, my question is to make the sugar business viable. What should, how much the minimum selling price should be increased. Like you are fetching in the market, somewhere around 37, 38 rupees. And based on the cost of production, where should it should, how much it should be increased so that the sugar business becomes viable.
Y. Venkateshwarlu
Yeah. You want to go first? Yeah, yeah.
Muthiah Murugappan
No, no. So you know Manoj, I think if you ask that question to industry, I think, you know, we’d have a really, really big ask around that one. You know, you look at most commodities pricing, even if you look at the domestic bill, oil and ghee and whatever else, pricing is significantly moved up in the last five, 10 years. Sugar unfortunately has, you know, remained very range bound and the sort of window shortens between the FRP increase and the price. So I think this is constantly being represented to the policymakers. I would say, you know, something into the early 40s would only be near meaningful.
However, you know, it still continues to be a deliberation with them on the, on the msp. So we will have to, we’ll have to wait and watch if anything is considered at all.
Manoj Shah
So do you expect anything to come before this next sugar season starts?
Muthiah Murugappan
No, you know, I think it’s not come around for quite some time. It continues to remain a deliberation. I think if you Ashiq spoke about release quotas, there’s also, you know, export allocations, ethanol diversions. These are how the sugar balance and pricing is, is really managed in our country. It’s also essential commodity. So you know, maybe it’s perhaps in their own right. Policymakers also have intent to keep pricing affordable and range bound. So it will continue to remain in deliberation. I think there has been, there are areas where in which we are hopeful policymakers will make some positive upward revisions but also the programs like evp, so on and so forth, they have been good moves made by them as well to strengthen the health of the industry.
Manoj Shah
But can you comment that through Ishma, you are in some active dialogue with government on this or it’s nothing of happening on this front as well.
Muthiah Murugappan
So Sanjay, MSP has always been a point which Isma has taken up with the authorities and they’ve always given us patient hearing. It’s never off the table in terms of discussion.
Manoj Shah
Okay. And in light of higher sugar production, sugar here, how do you see the movement in prices? Because there was a higher cane production which may again further depress the sugar prices. So how the profitability. This will impact the profitability.
Muthiah Murugappan
If you go back to my opening comments, I stated this as the first point to watch out for precisely what you all have rightly picked up also. Now yes, with more sugar coming into the balance and with these kind of release quotas and sugarcane ethanol not being given as much of an impetus, there is certainly a risk of downward sliding of prices now. Which is why perhaps into Q4, FF26 and Q1 and F27 and Q1 Q2, F27, having an export program will, will certainly be something I hope the policymakers will will consider strongly to ensure that pricing remains remains reasonable for us for the processors.
Manoj Shah
Any indication on ethanol bending program Moving half in 2225 higher than 20%.
Muthiah Murugappan
Again as mentioned earlier, you know this is a conversation as far as we know the auto industry is certainly prepared for a 20% blend. Beyond 20%, I’m. I’m not sure we have enough insight whether they are prepared. There’s also talk of flex fuel and higher blends but these are in smaller pockets. But up until 20% I think the industry is still there. We’re at 18 right now. We still have to catch up. 2%.
Manoj Shah
Okay. Okay. Okay. Thank you. Thank you very much.
operator
Thank you. Ladies and gentlemen, to ask a question, you may press star N1 at this time. Ladies and gentlemen, that was the last question. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Muthiah Murugappan
Thank you all for your patient listening. We look forward to meeting again during our Q1 F26 results in a few months time. Thank you.
operator
On behalf of DAM Capital Advisors limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.