Shree Renuka Sugars | Business Upturn

Stock Update: Shree Renuka Sugars, Balrampur Chini Mills and Dhampur Sugar Mills surge upto 7% as government mulls hike in sugar prices

Aditya Bhagchandani — Fri, 27 Sep 2024 05:40:05 +0000

Shares of major sugar companies, including Shree Renuka Sugars, Balrampur Chini Mills, and Dhampur Sugar Mills, surged by up to 7% on September 28, 2024. The rise came after Food Minister Pralhad Joshi announced that the government is considering increasing ethanol prices and the minimum selling price (MSP) of sugar for the upcoming 2024-25 season.

The minister highlighted that a committee of secretaries is discussing a proposal to raise the MSP of sugar, which has remained at ₹31 per kg since February 2019. Joshi expressed confidence in the upcoming season’s sugar production, attributing it to favorable monsoon conditions. Furthermore, the government will decide on sugar exports after assessing next year’s production and availability.

By 11:05 am, the stock prices of the sugar companies were trading as follows:

Shree Renuka Sugars: 6.34% higher at ₹51.17
Balrampur Chini Mills: 6.14% higher at ₹650.35
Dhampur Sugar Mills: 4.48% higher at ₹229.24

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Sugar Stocks Today: Balrampur Chini, Shree Renuka Sugars, and Triveni Engineering in focus after Govt removes Ethanol Cap

Arunika Jain — Fri, 30 Aug 2024 02:24:53 +0000

In a move that is expected to significantly impact the sugar industry, the Indian government has lifted the cap on sugar diversion for ethanol production starting November 1, 2024. This policy change, effective during the 2024-25 sugar season, allows sugar mills and distilleries to produce ethanol from sugarcane juice, syrup, B-Heavy molasses, and C-Heavy molasses.

The government’s decision aims to support its goals of increasing renewable energy usage and reducing dependence on fossil fuels. Additionally, the government has authorized distilleries to purchase up to 2.3 million metric tons of rice from the Food Corporation of India specifically for ethanol production.

This policy shift is expected to have a significant impact on sugar stocks, particularly those of major players in the industry. Some notable stocks to watch include:

– Balrampur Chini Mills Ltd.: One of the top sugar stocks by market capitalization
– Shree Renuka Sugars Ltd.: Another major player in the sugar industry
– Triveni Engineering & Industries Ltd.: A leading manufacturer of sugar and ethanol production equipment
– Praj Industries Ltd.: A prominent provider of ethanol production technology and equipment

The government has stated that it will collaborate with the Ministry of Petroleum and Natural Gas to monitor and review the diversion of sugar to ethanol production to ensure year-round sugar availability for domestic consumption. Industry stakeholders and market analysts will be closely monitoring the effects of these changes in the coming months.

Cabinet announces significant decision on Sugarcane pricing

Aishi Saha — Wed, 21 Feb 2024 17:45:07 +0000

In a significant move, the Modi Cabinet has approved a revision in the Fair and Remunerative Price (FRP) of sugarcane, impacting the upcoming sugar season 2024-25 from October to September. The decision entails fixing the FRP of sugarcane at £3.40 per quintal for a basic recovery rate of 10.25%. Moreover, an additional premium of £0.0332 per quintal will be provided for every 0.1 percentage point increase above the base recovery rate.

Furthermore, the government has also addressed concerns regarding sugar factories with lower recovery rates. For factories yielding a recovery rate of 9.5% or less, the fixed FRP stands at £3.1510 per quintal.

In addition to the adjustment in sugarcane pricing, the Cabinet has issued notifications regarding the export and import of key agricultural commodities. Firstly, the extension of the 20% export duty on parboiled rice has been confirmed, with no specified end date. This decision is poised to impact the dynamics of rice exports, ensuring stability and competitiveness in the market.

Secondly, the continuation of a nil import duty on yellow peas has been announced, subject to a specific condition. Import duty exemption will be applicable only to shipments with a Bill of Lading issued on or before 30th April 2024. This measure aims to streamline the import process and support domestic demand for yellow peas.

The implications of these decisions extend beyond the realms of the sugarcane and agricultural sectors.

Key players in the sugar industry, including Balrampur Chini, Shree Renuka Sugars, Dwarikesh Sugar, and Triveni Engineering, are expected to adapt their strategies in response to the revised pricing framework. Market analysts anticipate a ripple effect on various stakeholders within the agricultural value chain, from farmers to consumers.

The government’s proactive stance on sugarcane pricing reflects its commitment to ensuring fair returns for farmers while maintaining the sustainability of the sugar industry. By addressing concerns related to pricing and trade regulations, policymakers aim to foster a conducive environment for agricultural growth and economic stability.

In conclusion, the recent announcements by the Modi Cabinet underscore a concerted effort to address challenges and foster growth in the agricultural sector. As the nation prepares for the upcoming sugar season, stakeholders across the industry are poised to navigate the evolving landscape shaped by these policy decisions.