InvestorQ : How is sugar output likely to be in the coming year and what it means for Balrampur and Dhampur?
diksha shah made post

How is sugar output likely to be in the coming year and what it means for Balrampur and Dhampur?

Answer
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Dhwani Mehta answered.
3 months ago


Both Balrampur Chini and Dhampur need higher sugar prices to be profitable. Higher supply will put pressure on these stocks. However, the higher allocation to ethanol is positive. The net impact should be neutral.


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3 months ago


For the next sugar cycle of Oct-Sep 20-21, sugar output is expected to rise by 12% to 30.5 million tonnes compared to 27.2 million tonnes produced in the current sugar cycle of Oct-Sep 19-20. The monsoon has been estimated to be bountiful this year and hence the ISMA has given strong projections next year.

A larger share of sugarcane produce is likely to get diverted to molasses and production of ethanol which is blended with fuel. India has opened the current cycle with a stock of 14.5 MT and are expecting sales of 25MT and exports of 5.2MT leaving a closing stock of 11.5 MT in current cycle. Price pressure could be mostly negative for the sugar stocks.