Ethanol push places sugar business in highlight, says Sudip Bandyopadhyay

The sugar sector has not too long ago drawn important investor consideration, fueled by the continued ethanol mixing story. Specialists are optimistic in regards to the prospects of this delicate but doubtlessly rewarding business.

Sudip Bandyopadhyay, in an interview with ET Now, emphasised the distinctive dynamics of the sugarcane market. “Very first thing, this sugarcane business and grain, I don’t assume they’re competing. The market is massive sufficient, and the federal government will certainly guarantee that there’s a steadiness. Additionally, we’ve to keep in mind that sugarcane is a particularly delicate commodity and the federal government retains monitoring as a result of, on one hand, there are retail costs, alternatively, there are farmers, and, in fact, there’s an export angle,a world markets angle. So, they do the balancing act fairly nicely, and so they should constantly hold doing that, and we’ve to maintain that in min,d primary.”

He additionally identified the volatility inherent in sugar shares. “So far as the sugar business is anxious, due to the character of and the sensitivity of the sugarcane costs, in addition to the farmer funds and the retail sugar value, the federal government retains altering rules, tips, export quotas and issues like that. So, the counters stay risky and the worth retains shifting up and down. So, if as an investor you’ll be able to face up to volatility, then you possibly can are available in sugar; in any other case, you shouldn’t.”

Regardless of the fluctuations, Bandyopadhyay stays optimistic in regards to the business’s outlook. “So far as the general business situation is anxious, we’re optimistic on sugar at this stage. We imagine that there’s important alternative and valuation upside potential from this business at this stage. So, one can take a look at a number of corporations, however we do like Eid Parry. You get an publicity to Coromandel Worldwide as nicely via this. So, Eid Parry is our choose on this sector.”

Market analysts spotlight that whereas authorities interventions and value rules introduce short-term uncertainty, long-term buyers with the power to navigate these fluctuations could discover engaging returns. With secure fundamentals and beneficial coverage measures, corporations like Eid Parry are anticipated to stay on the forefront of progress in India’s sugar business.