Dhampur Sugar shares rise nearly 3% following government approval of 10 LMT sugar export quota for FY 2024-25

Shares of Dhampur Sugar Mills gained over 2.5% in early trade today, driven by optimism surrounding the government’s announcement of a 10 Lakh Metric Tonnes (LMT) sugar export quota for FY 2024-25. The move aims to stabilize sugar prices, ensure timely payments to sugarcane farmers, and support the sugar sector.

Key Highlights of the Government Initiative:

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  • Purpose:
    • Stabilize domestic sugar prices.
    • Ensure timely payment of dues to sugarcane farmers.
  • Export Quota: Allocation of 10 LMT for FY 2024-25.
  • Beneficiaries:
    • Farmers: Over 5 crore sugarcane farming families to benefit.
    • Workers: Approximately 5 lakh sugar mill workers to gain.
  • Impact:
    • Boosts liquidity for sugar mills.
    • Ensures timely settlement of sugarcane dues.
    • Balances sugar availability in the domestic market while maintaining price stability.

Industry Perspective:

The announcement is expected to bolster the liquidity of sugar companies and support sugarcane farmers in maintaining steady cash flow. The allocation will also aid in managing inventory levels while benefiting consumers through stable domestic prices.

Shares of Dhampur Sugar, alongside other sugar companies, responded positively to this development, reflecting the sector-wide optimism about the government’s supportive measures.