Sugar scrips bounced back from Today’s low levels. Uncertainty persists. Price levels may be struck at this level and range bound until firm clarity emerges from Govt.

Discl: Invested in Uttam Sugar and Triveni from lower levels.

This article argues that given better margins and high sugar prices, “cane-based distilleries are more likely to process ethanol from B-heavy and C-heavy molasses, and not directly from cane juice or sugar syrup”.

Govt policy may simply be going with the market flow or at least trying not to obstruct it.

Prerna Sharma Singh, the author of the article, and director of a policy research firm, suggests removing controls on sugar. She says

• artificially cheap sugar has health consequences

• sugar has little weight in inflation, unlike cereals and horticulture.

• larger future output requires higher capex. Denying access to profitable export markets will reduce the capex ramp-up. And will make price management harder in future.

• export curb announcement signals shortages and leads to hoarding and higher sugar prices.

• frequent export curbs create complications for foreign buyers and make India an unreliable supplier.

• export curbs will not improve the supply for ethanol processing.

Therefore, export curbs have negative short-term and long-term implications.

Removing curbs will improve price realisation and ensure timely payment to the farmers

Link to article: Why India needs to relax curbs on sugar export

Can you share your findings about the ISMT promoters? I did a brief reading, and see below:

• Kirloskar Ferrous Industries Limited (KFIL) acquired majority stake in the Share Capital of ISMT, making ISMT a subsidiary of KFIL w.e.f March 10, 2022.
• Some SFIO related investgation details are in this link – SFIO against ISMT Ltd. before NCLT Mumbai
• ISMT Board at its meeting held on November 4, 2022 which was adjourned to November 5, 2022 has approved a draft Scheme of Arrangement and Merger between the Company (Transferor Company) and Kirloskar Ferrous Industries Limited (KFIL/ Transferee Company). Pursuant to the said Scheme and upon receipt of all the requisite approvals, 17 fully paid up equity shares of face value of Rs. 5/- each of KFIL will be allotted for every 100 fully paid up equity shares of face value of Rs. 5/- each of the Company. Not yet completed.

Anything else on the erstwhile promoter of ISMT can you weigh on would be helpful?

Finally the news is here which we were waiting for. The NCLT order for the takeover.
This will enhance the capacity as well as the client base of the company.

cosmic order.pdf (4.3 MB)

Anybody have updates on a company?