MSP hike, export subsidy to perk up earnings, cash flows The government is expected to increase minimum selling price (MSP) of sugar by | 2 /kg in consideration of higher cost of production (CoP) for a benchmark non-integrated sugar mill. In conjunction with a hike in sugar floor price, sugarcane price is also expected to increase by | 10/quintal, leading to | 0.85/kg increase in CoP. This move would increase gross margins for sugar mills by | 1.15/kg, which ultimately flow to PBT. Further, to manage higher sugar inventory [11.5 million tonnes (MT) by September...