New Delhi: Indian sugar mills would increase their profit steadily despite fluctuations in the market, said Credit Rating agency Crisil Ratings, reports Livemint.
The agency in its report said that the surge in domestic sugar prices and rising sales of ethanol would contribute to the steady increase in operating profits of these sugar mills.
The rise in sugarcane costs and lower exports during the 2024 fiscal would be compensated by the higher domestic sugar prices and increased sales of ethanol, states the report.
From March to June the sugar prices have increased by 5% taking it to Rs 34 per kg as against the steady rate of Rs 32 per kg during the last two years. The decline in sugar estimates by 7% during the current year has resulted in the rising price of the sweetener.
Poonam Upadhyay, director, Crisil Ratings, said, “Tailwinds from steadily growing ethanol volume and better realization, supported by the government’s policy, will offset the impact of higher cane prices.”
