Not a great fan of sugar sector: Dilip Bhat, Prabhudas Lilladher

Dilip Bhat, Jt. Managing Director, Prabhudas Lilladher, in a chat with ET Now talks about the sugar sector.

Talking about the midcap pocket soft commodities sapce - sugar, fertilizers - would you participate into any of these sectors?

Of the two sectors which you mentioned, fertilizer appears to be a lot more secular in its approach because once you get a clear cut fertilizer policy, then may be probably one can really look into some of the fertilizer companies like Nagarjuna, Chambal.

As far as the sugar sector is concerned, I am not a great fan of that sector because I do not think that the sector really has the pricing power. I do not think that we have the luxury to think that the sugar manufacturers will be in a position to price the commodity the way they want it or as per the international trend. So if one really wants to play, it has to be a quite a momentum kind of a play or a call that one has to take. But otherwise - on a longer term basis - I do not think it is possible to take a very secular long term bet on this.