Lower sugar output may mean a tighter supply situation, but stocks from previous seasons and low international sugar prices could weigh on mills.
Moneycontrol News
@moneycontrolcom
Ravi Ananthanarayanan
Lower sugar output estimates did not cheer investors in sugar stocks. The Indian Sugar Mills Association lowered its sugar output estimate for the current season after reviewing recent satellite images. Sugar output is now estimated at 30.7 million tonnes compared to the October estimate of 31.5 million tonnes, while the initial July estimate was 35.5 million tonnes.
Estimates could change again, so investors should be watchful. Tighter supply is good news but stocks from previous glut seasons and weak international prices are overhangs. ISMA said mills may export only up to 3.5 million tonnes of the 5 million tonnes target, which again adds to domestic supply.First Published on Jan 22, 2019 05:11 pm
