Indian Sugar Sector - Government Raises Sugar Surplus Estimate To Seven Million Tonne: Systematix

In Sugar Season (Oct-Sep) 2022-23, India is expected to produce 33.6 mt sugar down 6.4% YoY as per latest government estimates.
<div class="paragraphs"><p>Sugar. (Source freepik)</p></div>
Sugar. (Source freepik)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Systematix Research Report

In Sugar Season (Oct-Sep) 2022-23, India is expected to produce 33.6 million tonne sugar down 6.4% YoY as per latest government estimates. The lower sugar production is attributable to higher diversion of ~5.0 million tonne (up 39% YoY) for ethanol production and lower yields in Maharashtra and Karnataka.

Thus, total sucrose production in the country would be 38.6 million tonne (down 2.3% YoY). This is the second highest sugar production in the country in the last five years.

The sugar opening inventory has been revised upwards by the government from 6.1 million tonne to 7 million tonne after physical verification was carried out by the authorities.

With domestic consumption of 27.5 million tonnes and exports of 6.1 million tonnes, we expect a closing inventory flat YoY at 7.0 million tonnes in sugar season 23, which is equivalent to ~three months of domestic demand.

Typically, the government would be content with holding 2.5 months of inventory which is ~5.8-6 million tonne. Thus, we believe there is an opportunity to export an extra 1 million tonne sugar.

Click on the attachment to read the full report:

Systematix Indian Sugar - Sector Update.pdf
Rise In Coking Coal Prices, China’s Modest GDP Growth Outlook To Dampen Metal Rally: Motilal Oswal


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Get Regular Updates