Sugar sector subsidy update - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

Government finally approved the much awaited subsidy of Rs.3,500 cr for the sugar industry to export 6 million tonnes of the sugar for the marketing year Oct'20-Sept'21. Amount of subsidy was Rs.6,000/tonne for the current marketing year as compared to Rs.10,448 per tonne for the last marketing year. Although the quantity on which subsidy is offered is kept the same, but the subsidy per tonne for sugar to be exported has been decreased by the Government. Due to export subsidy, sugar millers will be able to clear excess sugar inventory in the industry. Due to this news, sugar stocks opened on a positive note. Export of sugar by India can lead to correction in the international sugar prices.

Source : Equity Bulls

Keywords