Operating margin of sugar mills to rise: Report
   Date :29-Dec-2020

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THE export subsidy of Rs 3,500 crore, recently announced by the Government for sugar season 2020-21 (SS21), stable domestic demand and rise in ethanol price are likely to increase the operating margin of sugar mills to 10.5-11.5 per cent this financial year, according to a report.
 
The export subsidy, announced by the government for October-September SS21, will help sustain the commodity's exports at almost last year’s level, Crisil Ratings said in a report. This, together with stable domestic demand, higher contribution from ethanol due to higher cane diversion for ethanol production and increased ethanol price, will lead to a 100-200 basis points (bps) increase in the operating margin of sugar mills to 10.5-11.5 per cent this fiscal, it added.