New Delhi, April 7 -- An improvement in the balance sheets of sugar mills driven by robust closing inventory forecast is likely to firm up their profitability in the current season, as per a sectoral report by Centrum Broking.

Sugar marketing season in India runs from October to September.

Additionally, the anticipated hike in the Minimum Support Price (MSP) for sugar offers significant optionality for the mills, the brokerage firm said. It has maintained a "constructive" view on the sugar sector.

The MSP of sugar remains unchanged at Rs 31 per kg, a rate fixed in February 2019.

"The sector also stands to benefit from elevated global raw sugar prices and a weak Rupee, which could make exports more attractive if any quota is permitted ...