Sugar to be positive after levy quota cut: Phani Sekhar, Angel Broking

Could you revisit the sugar space now with a levy quota cut?

P Phani Sekhar: Sugar space will be positive after this particular development because the primary concern was what will be the government’s role, especially in the wake of a very high food inflation but now that sugar space is going to be positive for the simple reason that there is a huge difference between international sugar prices and the Indian prices and by this action even the domestic prices can harden by Rs. 4-5.

But I still maintain that the best investment in this space is going to be in those companies, which have got overseas sugar assets and a good marketing and distribution system there, companies like Shree Renuka because it will take some time for the domestic prices to harden.