A few days ago I wrote a post saying why I sold most of my shares in a south based sugar company. It was scary when Rahul Gandhi said – some of the losses have to be borne by the mills if the farmers have to benefit. Politicians can keep prices very different from its market prices for very long periods of time.

It was scary that mills would make losses – and the north based mills fell on that day. However convinced that prices cannot go much further up a lot of my shares hit the market. I exited between 319 to 360 a share.

However the great Mayawati made new rules – she said imported sugar (for crushing) could not enter UP. Simple. Like the say in Hindi – ‘Jiski Lathi Uski bhains’. The state government cannot control food grain movement, but what the hell – she did it!

So the beneficiaries (at least for a short period) are the mills from the south. So if you are holding shares of EID Parry, Shakti Sugar, Kcp, ..rejoice. Sugar shares will hit some senseless highs before it comes down. If you still want to buy, but PUT options in south based sugar shares…

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