Differing sugar output data, falling crude oil prices and expectation of further hikes in the regulated prices of cane present the major downside risks for the Indian milling sector.
Cane yields in many parts of the India state of Maharashtra are likely to fall by 15-35% because of harsh summer followed by heavy rainfalls. This western state is the country’s largest sugar producer accounting for roughly one-third of India’s sugar output and is expected to process 13.8 million tonnes of the sweetener. However, even
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