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Below is Perspective on sugar stocks By Mr. Raj Vyas, Portfolio Manager, Teji Mandi.

“The export expectation from the country for the on-going season was expected to be in the range of 9-9.5 Million Tons so what the government now has put in place is only the process and procedure whereby from 1st June 2022 permission is required to be taken. Sugar stocks were in focus after the Indian government put sugar export in restrictive category from 1st June 2022 onwards.

This is seen as a precautionary measure to safeguard the country's own food supplies. So what the statement from the government means is that now sugar mills will need to take permission from the government to export sugar. As in any case exports were not expected to be happening beyond 10 Million Tons and the fact that the government is comfortable even at an inventory level of 6 Million Tons by end of September 2022 is positive. Hence we believe that it is a good step by the union government and we should not see any earnings impact because it is just the potential export restrictions and there is no ban on exports.”

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