The inventory levels of Sugar are still high, but post December 2015 the Ethanol prices are fixed at Rs.49 which is very lucarative and the govt incentive of Rs.4000/T of sugar if the industry crosses the 4MT of Sugar exports. These two can be huge booster for the industry. We can look at playing this with Balrampur Chini (Debt to Equity is just 0.4 inspite of huge capacity) and can also look at Praj Ind an indirect beneficiary of revival of Ethanol blending.
Disclosure : Not invested yet, but tracking closely.
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