@manishinlucknow and @samir_brd – Sugar cycles and cane pricing is well known and has been under discusion under this thread in detail
My point here is not looking back at previous sugar cycles which were dependent on either favourable cane prices or sugar realizations….but this time a structural change happening in terms of aligning cane price and sugar realization (formula is not known) through linkage which is being proposed by Rangarajan committee few years back….if that is implemented (partial linkage has been adopted this year in UP where in UP Govt gave financial assistance to millers of Rs 40/quintal which got linked with sugar realization bench-marked at Rs 31/kg) – assuming process to take place in next 2-3 years – than sugar millers will report a fairly predictable earnings in future…that will drive the rerating for the sector…
Yesterday saw following tweets from Farmer association also recommending market linked pricing – i feel this is very positive signal…pure play sugar companies will be benefitted out of it…
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