it is in fact the opposite - going forward sugar industries will be derisked from govt policy flip-flops through bio-chemicals which use sugarcane based inputs cannot be controlled by govt - only cane price is out of the control of the companies. But if govt increases cane prices too much then sugar industry will shut !!
Govt can control cane prices, sugar quota and ethanol prices (thru PSU oil companies) and also molasses levy but cant control bio-chemicals. Sugar companies will control sugar production by balancing other products…
Sugar sector is going to be on upswing for next few years.
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