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Government allows sugar export
Government has allowed sugar exports of 500,000 tonnes. Although the step is in the
positive direction, we see minimal positive benefit accruing to domestic sugar companies.
Given that India’s production for SY2011 is likely to be at 26mn–27mn tonnes, export of
0.5mn tonnes would hardly make any impact. Moreover, there would be quotas limiting
the amount that each sugar producer can export, so the amount an individual player
would be allowed would hardly amount to any impact. Further, international sugar prices
have come down substantially from the high of 33cents/pound to around 27cents/pound
currently. We continue to remain Neutral on the sector and the stocks under our coverage.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Government allows sugar export
Government has allowed sugar exports of 500,000 tonnes. Although the step is in the
positive direction, we see minimal positive benefit accruing to domestic sugar companies.
Given that India’s production for SY2011 is likely to be at 26mn–27mn tonnes, export of
0.5mn tonnes would hardly make any impact. Moreover, there would be quotas limiting
the amount that each sugar producer can export, so the amount an individual player
would be allowed would hardly amount to any impact. Further, international sugar prices
have come down substantially from the high of 33cents/pound to around 27cents/pound
currently. We continue to remain Neutral on the sector and the stocks under our coverage.
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