In today’s trading session, sugar stocks in India faced significant selling pressure as concerns about future input costs rattled investors. Balramput Chini, a leading player in the sugar industry, saw its share price open at ₹375 on the NSE, dropping to an intraday low of ₹372 within minutes, marking a nearly 2.50 percent decline.
Similarly, Shree Renuka Sugars witnessed a downward trend, with its share price opening at ₹50 and touching an intraday low of ₹47.85, reflecting a 3 percent decrease from its previous close of ₹49.60.
Other sugar stocks such as Dwarikesh Sugar, Rana Sugars, Dalmia Bharat, Triveni Engineering and Industries, KCP Sugar and Industries Corporation, and Mawana Sugars also experienced selling pressure during morning trading, slipping into negative territory with over 1 percent intraday losses.
“With this approval, sugar mills will pay FRP of sugarcane at Rs 340/quintal at recovery of 10.25 percent. 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 percent,” the Centre said in a statement.
The FRP of sugarcane for the upcoming season has been set at ₹340 per quintal, with a sugar recovery rate of 10.25%. This marks an 8% increase from the current season’s FRP. The revised FRP will come into effect from October 1, 2024, potentially impacting the profitability of sugar companies as they will have to procure sugarcane at a higher price.
