Sugar prices in the limelight as it is likely to see a surge
The year 2017 has been a year of rising commodities prices so far.
The year saw steep prices being increased by steel companies. Copper
prices are being revised upwards by Hindustan Zinc and the Thermal coal
prices might be increased by Coal India as well.
What about agree-commodity prices? Will Sugar prices rise in 2017, is a million-dollar question for the sugar industry.
Sugar prices have rallied almost 15% over the past one year and if we
consider a period of 18 months the agree-commodity has risen by a
whopping 80%.
The surge in sugar prices has been due to falling production and marginal rise in consumption demand.
The cane price rise has increased the cost of production significantly
even as the cane prices have risen by 59% over the past five years.
Currently the import duty on sugar is 40% and no overseas purchase is
taking place. One must speculate whether government plans to cut import
duty on sugar in the near future.
With bullish scenario for sugar prices intact, the sugar stocks will remain in limelight as of now.
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