India’s decision of limiting sugar exports will not affect Malaysia Holdings Bhd’s supply of raw sugar as MSM mostly depends on Brazil for sugar requirements.
According to CGS-CIMB Securities Sdn Bhd analyst Nagulan Ravi, the major exporting countries like Brazil may continue with their protectionism policies that may lead to sugar shortage fueling sugar prices in the world market and buoy raw sugar futures (NY11) prices in the mid-term.
As per report published in The Malaysian Reserve, the analyst also stated that India’s restriction on sugar export won’t affect the global supply-demand dynamics of sugar in near term.
He opined that sustaining the high sugar prices could pressure MSM’s FY23F operating margin.
FGV group CEO Mohd Nazrul Izam Mansor told media that MSM’s sugar production is sufficient for the market in Malaysia and India’s restriction does not affect our subsidiary company (MSM).
