Brazil’s loss is India’s profits, say analysts
Shares of sugar charges surged on Monday, as analysts expect the commodity rate to head up following Brazil woes. According to reviews, sugar output for April in Brazil turned into down 35 per cent 12 months-on-year. Analysts said Brazi’s loss may be India’s advantage.

A Reuters file quoting enterprise organization Unica stated: “Brazil’s center-south sugar output changed into best 624,000 tonnes in the first half of of April as opposed to 971,000 tonnes in a similar length ultimate 12 months. Cane overwhelm changed into seen at 15.6 million tonnes, 30 in line with cent less than in 2020.”
According to analysts, Indian sugar enterprise has contracted 55 lakh tonnes for exports and raw sugar is bought at a premium. India’s sugar manufacturing has elevated forty one lakh tonnes at some point of the present day October 2020-September 2021 season.

Shares of EID Parry and Balrampur Chini have hit 52-week excessive on Monday. Most of the sugar stocks have hit the top circuit on Monday. While the former won sixteen.Seventy four consistent with cent at ₹403.85, the latter surged sixteen.33 according to cent at ₹323.80. Shares together with Bajaj Hindusthan Sugar, Dwarikesh Sugar, Dhampur Sugar Mills, Uttam Sugar Mills, Sakthi Sugars and Ponni Sugars (Erode) jumped 20 according to cent even as Shree Renuka Sugars climibed 10 in keeping with cent. Ravalgaon Sugar Farm, Dharini Sugars & Chemials and Thiru Arroran Sugars surged 5 according to cent.
Tight demand-supply
The harvest season has commenced in Brazil and initial traits point to a decrease crop yield this 12 months, as a result of much less sowing and unfavourable Monsoon situations. Sugarcane yield is possibly to drop this season and its best is also probable to head down, that could effect recovery fees in Brazil. “As a result, we count on Brazil’s millers to limit sugar manufacturing this year. With a few other key sugar-producing countries, which include Thailand, & EU, now not expected to supply better output, we trust the worldwide call for-supply scenario to stay tight,” Elara Securities stated.

“We accept as true with India’s sugar industry will obtain 6.Zero mn tonne exports goal set with the aid of the government on the begin of the year on fairly remunerative global costs,” brought Elara Securities

‘Not a cyclical any more’
Another domestic dealer firm JM Financial stated that it believes India’s sugar region has drifted faraway from cyclicality (in phrases of sugar expenses) in addition to from partial deregulation (it’s miles completely regulated now and is probably to stay so in the foreseeable future).

“This has been led via: structural oversupply in terms of sugar production (from swinging between 22-30 mt to 30 mt plus except in case of drought years in Maharashtra and Karnataka; the government’s efforts at the ethanol blending software; and the government’s goal to make certain sugarcane farmers are paid with out huge arrears”.