Gurnam Arora, Joint MD, Kohinoor Foods told CNBC-TV18 that prices of basmati rice has surged due to high paddy costs. This is cause of concern for the company because it may not be able pass high price to key export markets like Iran, he said.
"For basmati, the opening prices this year compared to last year are about 50 percent to 70 percent higher, this worrying because the industry was expecting about 15-20 percent higher crop this year because of good monsoon," he added.
At 12:12 hrs Kohinoor Foods was quoting at Rs 39.70, up Rs 2.10, or 5.59 percent.
Also Read: India's rice exports seen at record 11 mn tonnes, says USDA
Below is the edited transcript of Gurnam Arora's interview with CNBC-TV18.
Q: Are you likely to see a rise in rice in prices. Is output in the eastern states a matter of concern?
A: This is the general tendency that when there is a shortage in the output, prices go little high. But right now the export scene allover is not very good because prices in the international markets have dropped. Prices here are generally determined by demand from overseas markets.
Q: If you are saying that domestic prices are higher but your export prices will not reflect it, you will see a squeeze in margins?
A: I do not see that. At the end of the day, the international market has to grows to a level, if they increase the price by USD 10-20 if you have margins only then you will export otherwise you won't.
For basmati, the opening prices this year compared to last year are about 50 percent to 70 percent higher and that is a worrying situation for the industry. We were expecting about 15-20 percent higher crop this year because of good monsoon.
Q: If you had to give us an estimate of how much the price will move in your assessment, in the next three-six months. What is your fair guess?
A: Basmati prices have already gone high because cost of our paddy is very high this year. Our worry is that will we be able to sustain because we are looking forward to Iran, which is the biggest market for us. If they come out with these prices, for example if the price is USD 300 higher than expected or USD 200 higher than expected, so we are all watching the scene that how they react to this price hike.
Q: You were mentioning earlier that exports are suffering a bit but there was news that Russia had lifted its eight month ban on import of rice. That would perhaps make a situation better for some of you guys?
A: Little bit better but that is not a great market for us. They are not big buyers for long grain or basmati.
On November 06, 2013, at 12:32 hrs Kohinoor Foods was quoting at Rs 39.05, up Rs 1.45, or 3.86 percent. The 52-week high of the share was Rs 57.60 and the 52-week low was Rs 22.25.
The company's trailing 12-month (TTM) EPS was at Rs 3.68 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 10.61. The latest book value of the company is Rs 129.74 per share. At current value, the price-to-book value of the company was 0.30.
Anda sedang membaca artikel tentang
Basmati prices up due to high paddy costs: Kohinoor Foods
Dengan url
https://rokokkanker.blogspot.com/2013/11/basmati-prices-up-due-to-high-paddy.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Basmati prices up due to high paddy costs: Kohinoor Foods
namun jangan lupa untuk meletakkan link
Basmati prices up due to high paddy costs: Kohinoor Foods
sebagai sumbernya
0 komentar:
Posting Komentar