Import duty cut a risk to sugar rally

Last week, Isma reduced its production assessment for the ongoing sugar season to 21.3 mt

Sugar production updates continue to point downwards. With Maharashtra and Karnataka, two important states for production, being impacted by low rain, the output is likely to decline for the second year. This has led to a rally in sugar prices.

CARE Ratings says prices were Rs 35-Rs 35.8 a kg between September 1 and December 22, 2016. These rose to Rs 37.5 a kg by January 6 and a high of Rs 39 a kg on January 13. This was reflected in stock prices; many companies based in Uttar Pradesh, such as Balrampur Chini and Dwarikesh Sugar, hit 52-week highs and