Last Updated: February 22, 2024, 12:49 IST
Sugar shares had been buying and selling within the purple on February 22, as the federal government introduced a hike within the truthful and remunerative worth (FRP) of sugarcane to Rs 340 a quintal from Rs 315 for the 2024-25 season. Sugar main Balrampur Chini share worth as we speak opened draw back at Rs 375 apiece on NSE and went on to the touch an intraday low of Rs 372 inside a couple of minutes of the opening bell, logging practically 2.50 per cent dip on Thursday session.
Shree Renuka Sugars’ share worth opened at Rs 50 apiece and went on to the touch an intraday low of Rs 47.85 per share stage, recording round a 3 p.c dip in opposition to its Wednesday shut of Rs 49.60 per share.
Shares of Dwarikesh Sugar, Rana Sugars, Dalmia Bharat, Triveni Engineering and Industries, KCP Sugar and Industries Corporation, Mawana Sugars, and many others. additionally got here underneath the promote-off warmth throughout Thursday morning offers and slipped into the purple territory by over 1 p.c intraday loss.
Simbhaoli Sugars Ltd.(down 5.59 per cent), Vishwaraj Sugar Industries Ltd.(down 4.18 per cent), Bajaj Hindusthan Sugar Ltd.(down 3.13 per cent), Rana Sugars Ltd.(down 3.06 per cent), KM Sugar Mills Ltd.(down 2.89 per cent), Mawana Sugars Ltd.(down 2.83 per cent), Sakthi Sugars Ltd.(down 2.45 per cent), Uttam Sugar Mills Ltd.(down 2.37 per cent), Ugar Sugar Works Ltd.(down 2.23 per cent) and KCP Sugar & Industries Corporation Ltd.(down 2.04 per cent) had been among the many prime losers.
DCM Shriram Industries Ltd.(up 1.87 per cent) and Magadh Sugar & Energy Ltd.(up 0.50 per cent) had been among the many solely gainers.
“With this approval, sugar mills will pay FRP of sugarcane at Rs 340/quintal at recovery of 10.25 per cent. With each increase of recovery by 0.1 percent, farmers will get additional price of Rs 3.32 while the same amount will be deducted on reduction of recovery by 0.1 per cent,” the Centre stated in an announcement.
While for different crops the federal government fixes the MSP, cane growers are provided FRP. The mechanism is ruled by the Sugarcane (Control) Order of 1966. The Commission of Agricultural Costs and Prices (CACP) yearly formulates suggestions for FRP, encompassing varied agricultural commodities, together with sugarcane. The authorities evaluates these suggestions earlier than they’re put in place.
The general sugar manufacturing in 2023-24 is predicted to see a downslide due to decrease rainfall, which has led to lesser sugarcane plantation this 12 months, stated the trade.
At 107 per cent larger than A2+FL price of sugarcane, the brand new FRP will guarantee prosperity of sugarcane farmers. It is noteworthy that India is already paying the very best worth of sugarcane on this planet and regardless of that Government is guaranteeing the world’s least expensive sugar to home shoppers of Bharat. This resolution of Central Government goes to learn greater than 5 crore sugarcane farmers (together with members of the family) and lakhs of different individuals concerned in sugar sector. It re-confirms fulfilment of Modi ki Guarantee to double farmers’ earnings.
With this approval, sugar mills can pay FRP of sugarcane at Rs 340/quintal at restoration of 10.25 per cent. With every enhance of restoration by 0.1 per cent, farmers will get extra worth of Rs 3.32 whereas the identical quantity might be deducted on discount of restoration by 0.1 per cent. However, Rs 315.10/quintal is the minimal worth of sugarcane which is at restoration of 9.5 per cent. Even if sugar restoration is lesser, farmers are assured of FRP at Rs 315.10/quintal.
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