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

Sugar recovery in UP has increased by almost 0.5% in December. It could be higher in Jan and Feb.
every 0.25% improvement in recovery leads to Re. 1 per kg reduction in cost of sugar. If a decent size mill making 1.5 lac tons a year sugar can increase profit by 30 crs p.a.

This year UP mills will make good money. Next year it could be even more as all mills are focusing on cane development – yield increase, pest reduction, etc. rather than expansion of capacity.