InvestorQ : What does the withdrawal of sugar subsidies mean for sugar companies like Balrampur, Dhampur, Parry and Dalmia Sugar?
swati Bakhda made post

What does the withdrawal of sugar subsidies mean for sugar companies like Balrampur, Dhampur, Parry and Dalmia Sugar?

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Sam Eswaran answered.
4 months ago
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While the official confirmation has not come, there are indications from the government that they would most likely withdraw sugar export subsidies due to rise in global sugar prices. This will be made applicable when the sugar year starts from October. Normally, sugar follows an annual cycle of October to September. The sharp fall in supply from Brazil, the largest sugar producer, had led to a spike in global sugar prices.

Government does not see price differential as being a constraint any longer for Indian sugar exporters. In the last 3 years, India had surplus sugar, which they could not export due to Indian sugar being uncompetitive on costs. That differential was bridged by the government in the form of subsidies. However, it had become a global trade issue with Brazil and Thailand approaching the WTO. Currently, sugar prices are at near 5-year highs.

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