Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains!

As received from another sugar specialist friend

1. This shortage is temporary, for 2-3yrs. And hitting non UP. UP mills will make bumper profits for 2-3yrs
2. Gov has strong will to promote ethanol. And have incentivised ethanol investments. Some WTO mandate also. Gov won’t fck ethanol plants.
3. Smart are the players who are putting up dual feed plants. For max asset turnover.
   … only Triveni, Balrampur. Dalmia. Dhampur
4. Industry will maximize its profits between sugar and ethanol. Whichever fetches them higher prices.

The only risk is disease and weather. For that, diversify amongst mills, don’t bet on single company!