Stock Market update: Sugar stocks Triveni & Balrampur Chini hit new highs on strong outlook

Shares of sugar companies are trading higher by up to 10 per cent.

Sugar stocks are in high demand and are trading at high prices today. Triveni Engineering & Industries share price hit at Rs 239.00 per unit with 14.60 points and by 6.49 per cent today on, 4 January 2022 (01:35 PM IST).

On the other hand, Balrampur Chini Mills’ share price hit at Rs 403.80 per unit with 29.6 points and it surged by 7.89% which is comparatively higher than in the month of October. On October 25, 2021, the share price was Rs 300.8 per unit. EID Parry (India) has also witnessed a rise in stocks. Today its share price went up to Rs 480.35 with an increase of 24.75 points and 5.46%.

In past one year, the sugar industry has seen a significant reduction in sugar inventory with an increasing shift towards ethanol, resulting in high sugar prices. This season the sugar prices are expected to rise by 16-17%.

“With expected sugar production of 31 million tonnes (after the 3.4 million tonnes equivalent diversion towards ethanol), 27 million tonnes of consumption & 6 million tonnes of exports, sugar inventories are likely to come down from 8 million tonnes to 6 million tonnes. This would result in uptick in domestic sugar prices towards Rs 38/ kg in next 3-4 months”, ICICI Securities said in a note.

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