Indian government likely to announce sugar export policy, ethanol price hike
The Government of India is likely to announce its sugar export policy for the 2022-23 season soon. The government is expected to allow 8 MT of exports in two tranches. Moreover, it is also likely to increase ethanol prices by Rs 2/ litre for 2022-23 ethanol procurement year (December 2022-November 2023).
We believe both decisions were expected from the last few months. Sugar export and ethanol price hike would benefit sugar millers by ensuring stable domestic prices and higher diversion of sugarcane towards ethanol. We remain positive on UP based sugar companies.