Sugar Sector Check - Global, Domestic Prices Surging Ahead: ICICI Direct
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Global sugar prices have crossed U.S. cents 20/pound while simultaneously domestic prices have also moved up to Rs 36/kg.
In our July 2021 sector report, we reiterated our positive stance on sugar prices, distillery capacity expansion and subsequent high earnings growth for next three years.
Our view on sugar prices has been materialising. We maintain our stance that the sugar industry would be able to export six to seven million tonnes of sugar in the 2021-22 sugar season without export subsidy given global sugar prices are higher than cost of production for Indian sugar companies.
This would lead sugar inventory levels to come down to below seven million tonnes by September 2022, keeping sugar prices firm (Rs 34-38/kg).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.