The Centre’s continued focus on ethanol is a positive for the sugar industry as exports are likely to reduce in SS21 (sugar season 2021), India Ratings and Research (Ind-Ra) said in a report.
As per the report, record exports and a resilient domestic demand made sugar one of the few sectors to witness strong revenue growth in the Covid-19 affected in 1HFY21.
“The growth was also supported by an increase in the distillery revenue. The aggregate revenue of major sector entities grew 30 per cent YoY in 1HFY21…,” the report said.
“However, the growth in the sugar segment is likely to witness a moderation in 3QFY21 with a significant reduction in exports due to the delay in announcement of export subsidy mid-December 2020.
