Sugar prices are declining in global and local markets, and that appears to be putting pressure on shares of sugar mills. If that is also hiked, then UP-based sugar mills will feel the strain. Sugar mill shares did well in fiscal year 2017 despite lower sugar output, as rising prices saw them reap good returns. The large sugar mills have integrated operations; higher output means more feedstock for their power cogeneration and alcohol/ethanol operations. The monsoon and the state advised price in UP are the key factors to watch out for, apart from whether sugar prices decline further from current levels.

Source: Mint June 14, 2017 02:15 UTC