Avoid sugar stocks: Prakash Diwan

Prakash Diwan, Chief Portfolio Strategist, Prakash Diwan's Wealth Circle, in a chat with ET Now, gives his stock recommendation

What is your call on sugar?

Sugar is going through one of the biggest gluts in the last many years globally. This means that price hike is not happening very soon. Sugar has gone through waxing and waning of shortage right to a glut led price control. This means that most of the sugar companies would have to look at their projection a new. Coming into the crushing season, it is only going to make matters difficult for them. So that is the reason why none of them have moved as per expectation. Recommendation of the Rangarajan Committee are yet to be finally accepted. So, it is going to be a while before that happens and all the benefits start trickling down. So I would say away from at least sugar for the time being.