India’s total sugar production is expected to increase by 2 per cent in sugar season 226. The monsoon has helped over average. Crisil ratings said the sugarcane sector has been promoted in the main sugar producing states like Maharashtra and Karnataka.
Growth will reduce the tightness in the household supply and have the ability to boost ethanol diversion with proper proper support and revive exports, he said.
This will provide some relief to the high sugarcane cost challenges, suppressed ethanol prices and muted exports, which will make their operating profit 200 base points (BPS) to 8.7-9 percent in the financial year 25.
In the financial year 226, the operating margin of sugar mills are likely to be cured by about 9-9.5 per cent due to the improved supply of ethanol with gasoline and a possible high deviation of sugar, the report said that sugar players are likely to support credit profile.
In the last two seasons, the price of generous and compensation (FRP) of sugarcane has increased by 11 percent, while ethanol prices have changed drastically and are collapse of Miller’s revenue-consent mobility. The sugar season has increased by 4.5 million tonnes in 2026 (205. Average percent of the average), as it gives a rapid cash-flow churning, the report said. “The strategic diversity in ethanol was the purpose of reducing the risk of sugar mills and reducing cash flow.
“As a result, the operating margin of integrated Miller is likely to improve by only-1-60 BPS, despite the 5 percent jump in sugar production, the distillery or co-generation of energy sales should be improved by only-1-60 BPS.
The report states that sugar prices, which are expected to rise in sugar, are likely to remain in the range and any significant side of the sugar Miller’s profit is limited.
Crisil ratings are estimated to be approximately exporting, domestic supply problems at 1 million tonnes in 225, with high sugar production in sugar season 1 and a list of 6 months of use.
It is said that any ease of export curb will depend on the decision to show the equality of favorable global prices as viewed in ethanol, adequate home availability, mild inflation trend and sugar season 1 in.
Crisil Rating Director Poonam Yupidya said, “The level of sugar list after the financial year is expected to remain at the level of the previous year. Despite the high distillery operations, the loan increase in the working capital has been limited.
For the coming season, the earthly and local distribution of the monsoon, its impact on sugarcane yields, timely ethanol prices repetition and the clarity of export policy in global sugar prices, the report said.
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