US sugar is getting sweeter by the day. An indicator of global sugar price is at 3yrs high. Further buoyancy likely given that global demand/supply scenario.
Hurdle of Sugar export from India likely to get clear as prices remains healthy. Expect Indian sugar stocks to follow the trend set up by US sugar.
US sugar surged 6% y’day to a new 52 week high, indicating strong global demand for Sugar. This only means Indian sugar mills can very easily liquidate the export quota of 6mn Tonnes, and reduce the inventory as well as pressure on domestic prices. At these levels, export realisation along with subsidy (rs6/kg) gets better than domestic realisation. Very positive for sugar.