One key reforms expected to be announced in near term by GOI is linkage of sugarcane prices with sugar prices and creation of a sugar stabilization fund and govt may directly decide to provide subsidy to sugarcane farmers for shortfall for FRP declared. Also clear cut sugar export/import policy during surplus/deficit years in place of current adhocism can change long term outlook for sugar industry for investment purpose and may be catalyst for further rerating of sugar stocks. Any clarity on ethanol policy front is only added benefits as and when petrol prices start rising again.
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