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Rising sugar prices should benefit mills, but policy changes could pose an obstacle

Global sugar prices have risen sharply and are set to rise further. While mills are expected to benefit, unexpected changes to government support measures could pose a risk

August 31, 2021 / 02:12 PM IST
Rising sugar prices should benefit mills, but policy changes could pose an obstacle

A sustained increase in global sugar prices and government policy changes in the new sugar season are events that investors in sugar mills will be keeping a watch over. The first should be a happy event. After all, rising sugar prices are good news for mills. Global sugar prices have risen sharply, with the raw sugar price (ICE contract #11) rising by 37 percent over its pre-pandemic level of February 2020. A recent Crisil report projects raw sugar prices to...

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