Domestic sugar sector has been under pressure as the food ministry has still not issued the sugar export license despite the Empowered Group of Ministers (EGoM) approving the sugar export of five lakh tonne. In addition to that there are concerns over rising commodity prices and inflation, which may impact sugar exports further.
However, Narendra Murkumbi, managing director of Shree Renuka Sugars, in an interview on CNBC-TV18, said that concerns on sugar export duty have been overblown at this point of time. "I think too much is being made of this suggestion that there could be a sugar export tax,"he added. As far as price of raw sugar is concerned, he said it is expected to trade between 23-25 cents in the second half of the year, while global raw sugar is expected to trade in a range of 20-27 cents. Shree Renuka has had a cloud over itself because of newsflow of Ethanol shortage that has been coming in from Brazil. Mukumbi said that the Brazilian government is worried about tightening over EthanolDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
