Renuka Sugars shares surge nearly 3% as government allocates 10 LMT sugar export quota for FY 2024-25

Shares of Shree Renuka Sugars surged by nearly 3% in early trade today following the government’s announcement of a 10 Lakh Metric Tonnes (LMT) sugar export quota for the financial year 2024-25. The move aims to stabilize domestic sugar prices, ensure timely payments to farmers, and bolster the sugar industry.

Key Highlights of the Initiative:

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  • Purpose:
    • Stabilize domestic sugar prices.
    • Ensure timely payment of sugarcane farmers’ dues.
  • 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 from the liquidity boost.
  • Impact:
    • Enhanced liquidity for sugar mills.
    • Timely settlement of sugarcane dues.
    • Balanced sugar availability in the domestic market while maintaining price stability.

Statement from Union Minister:

Union Minister of Consumer Affairs, Food and Public Distribution, Shri Pralhad Joshi, emphasized that the move reinforces the sugar sector while prioritizing the interests of farmers and workers. The initiative also ensures stability in the domestic market amid rising demand for sugar exports.

This announcement has positively impacted Renuka Sugars’ stock, reflecting optimism over the government’s supportive measures for the sector.