Government expected to allow 8 MT of sugar exports in two tranches
News: With sugar production projected to be nearly 40 million tonnes (mt) in the 2022-23 sugar season (starting October 1), the central government may be looking at a policy to allow exports of around 8 mt of the sweetener in two tranches. In the first tranche, market sources said exports of around 5 mt could be permitted. This could be expanded by another 2.5-3 mt only after assessing the price situation and supply along with the sugar exports demand scenario.
View: We believe 8 MT of sugar export in 2022-23 season would keep inventory level ~6 MT as on September 2023. This would keep sugar prices firm above Rs 35. Also, most UP sugar millers would export refined white sugar, which is expected to fetch Rs 37-40 / kg according to prevailing white sugar prices.
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