Sugar stockpile to put pressure on prices, sector banking on export subsidy

Even as analysts predict continued pressure on domestic sugar prices owing to projections of record opening stock for next crushing season (October-September), the industry is banking on the export subsidy announced by the Centre yesterday to bailout the beleaguered sector.

ICRA on Thursday said despite expected decline in sugar output, the pressure on sugar prices and consequent operating margins would remain in 2019-20 in the backdrop of robust sugar surplus scenario. India's ability to export sugar and policy support to divert cane production towards ethanol will be key to sustaining the health of industry, ICRA note said.

"We expect domestic