In a cabinet briefing today, Minister Prakash Javdekar announced 60 LMT quota for exports of sugar season 2020-2021 with an assistance of ₹3500 crores. In the previous sugar season 2019-2020, the Government provided an assistance of ₹10,448/MT. Although the decision on exports of sugar comes with a delay the assistance will benefit 5 crore farmers and the sugar industry.
In conversation with ChiniMandi News, Mr. Micheal McDougall, Managing Director – Paragon Global Markets LLC shared his views on the development. He said, “I think that the market has been waiting for this long drawn out affair for some time, but as with any anticipated change, the market usually corrects after the fact. In this case “sell the rumor, and buy the fact”. Most also believe that at least some of this sugar will be needed, so the market should seek out the sugar price wise, sooner or later. So not a disastrous development.”