“Sugar costs, which initially noticed beneficial situations firstly of the season however later corrected because of the imposition of a cap on sugar diversion, have begun to stabilise. Just lately, sugar costs have reached a backside or stagnated at round ₹37.5-38/kg in Uttar Pradesh, which is worthwhile and remunerative charge given we’re in crushing season and costs could be anticipated to rise throughout low season,” it mentioned within the report, authored by analysis analyst Sailesh Kanani.
- Additionally learn: Merchants physique raises sugar output estimate to 32 mt
As of March 31, the State-wise crushing knowledge for 2023-24 sugar season (October-September) signifies that 295 million tonnes (mt) cane crushed towards 305 mt throughout the identical interval within the earlier season.
On a nationwide scale, the sugar restoration numbers for this 12 months have improved on a y-o-y foundation at 10.15 per cent – because of decrease diversion. “On this backdrop, we revise expectations upward for sugar manufacturing in 2023-24 to 32 mt (from earlier estimate of 31.7 mt), in comparison with 33.1 mt in 2022-23. This upward revision is primarily attributed to late surge in sugar manufacturing in Maharashtra (up 2.1 per cent),” the report mentioned.
Nevertheless, UP (sugar manufacturing up 9.7 per cent) has seen a pointy decline in operational mills within the final fortnight. “Our general outlook on the sugar sector stays marginally adverse. This angle is influenced by current notifications from the Authorities of India affecting ethanol volumes, with a chance of a extra important affect on subsequent 12 months’s monetary efficiency. Moreover, the rise in sugar manufacturing would result in larger stock ranges and is predicted to exert downward stress on sugar costs. Nonetheless, we consider that the worst is over for the sector by way of adverse information circulate,” it mentioned.
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