The recent phase of upward movement in sugar stocks has come on the back of reports that fire in Brazilian sugar cane fields is likely to lead to shortage of sugar in the global market. It is not only this year, but even next year the impact of these fires will be felt by Brazil which is the largest exporter of sugar. Should that be the reason for the stocks to be bought, or there is more to India's sugar story? Probably second, because there is more to the sugar story than the shortage of sugar which has led to sugar prices.
