InvestorQ : Is it true that sugar companies like Dhampur, Balrampur and Dalmia Bharat are seeing revival in sugar demand in the post COVID scenario?
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Is it true that sugar companies like Dhampur, Balrampur and Dalmia Bharat are seeing revival in sugar demand in the post COVID scenario?

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Rashi Mehra answered.
8 months ago
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There has certainly been a boost to sugar demand in the last few months. That is the reasons many sugar companies have touched yearly highs in recent weeks. Sugar is an institution-demand driven product. Demand for food products are on an upswing and take-away foods are the rage in the lockdown. Even, domestic demand for sugar has seen an upsurge due to WFH. Above all, government is supporting exports with subsidies.

For example, the sugar year extends from October to September, which is the sugar cycle in India. Last two years, government gave liberal subsidies to sugar mills to export as Brazil was faced logistical constraints. India could easily serve most net sugar consumers across Asia. Subsidies are needed as India’s cost of producing sugar is much higher. In last two years, the exports of sugar absorbed good chunk of the sugar inventories.

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