 "Sugar shares in focus; Dwarikesh Sugar, Balrampur Chini up over 5%")
Shares of sugar companies were in focus with most of the frontline stocks trading higher by upto 11% on the BSE on reports that the government is likely to provide financial support to cane farmers for produce sold to sugar mills.
Dwarikesh Sugar Industries, Thiru Arooran Sugars, Bajaj Hindustan, Balrampur Chini Mills, Uttam Sugar Mills, Mawana Sugars and Trivenni Engineering & Industries were up in the range of 6% to 11% on the BSE. The S&P BSE Sensex was trading 0.34% higher at 33,915 at 09:47 am.
Prime Minister Narendra Modi's administration is likely to approve a proposal to pay around 55 rupees ($0.84) for every tonne of cane sold to the mills, two government sources said, seeking anonymity in line with government policy, the Reuters report suggested. CLICK HERE TO READ FULL REPORT.
Most of the sugar stocks had underperformed the market and hit their respective 52-week lows in the month of March. Over the last 3-4 years these sugar stocks have been rank outperformers. In the last 6 months the situation changed for the worse as a supply glut took its toll on the stock prices of sugar companies. During the last 1 year, even as the Nifty has given a 10% positive returns, sugar stocks have seen deep cuts. Most of the sugar companies in India have fallen by 40-50% in the last 1 year.
According to Manickam, in the Budget 2018, Jaitley had announced an assured MRP at 150% of the cost of production for Kharif crops. But in the case of sugarcane, the actual price is 25% more than this assured price too. It is hardly surprising that the sugar mills are currently having nearly Rs 140 billion of dues to sugarcane farmers and that situation is likely to continue with the current glut situation, the brokerage firm Angel Broking said in sugar sector blog.
Dwarikesh Sugar Industries, Thiru Arooran Sugars, Bajaj Hindustan, Balrampur Chini Mills, Uttam Sugar Mills, Mawana Sugars and Trivenni Engineering & Industries were up in the range of 6% to 11% on the BSE. The S&P BSE Sensex was trading 0.34% higher at 33,915 at 09:47 am.
Prime Minister Narendra Modi's administration is likely to approve a proposal to pay around 55 rupees ($0.84) for every tonne of cane sold to the mills, two government sources said, seeking anonymity in line with government policy, the Reuters report suggested. CLICK HERE TO READ FULL REPORT.
Most of the sugar stocks had underperformed the market and hit their respective 52-week lows in the month of March. Over the last 3-4 years these sugar stocks have been rank outperformers. In the last 6 months the situation changed for the worse as a supply glut took its toll on the stock prices of sugar companies. During the last 1 year, even as the Nifty has given a 10% positive returns, sugar stocks have seen deep cuts. Most of the sugar companies in India have fallen by 40-50% in the last 1 year.
According to Manickam, in the Budget 2018, Jaitley had announced an assured MRP at 150% of the cost of production for Kharif crops. But in the case of sugarcane, the actual price is 25% more than this assured price too. It is hardly surprising that the sugar mills are currently having nearly Rs 140 billion of dues to sugarcane farmers and that situation is likely to continue with the current glut situation, the brokerage firm Angel Broking said in sugar sector blog.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| SIR SHADI LAL | 47.90 | 41.90 | 14.3 |
| RANA SUGARS | 5.84 | 5.13 | 13.8 |
| DWARIKESH SUGAR | 28.50 | 25.70 | 10.9 |
| BALRAMPUR CHINI | 81.95 | 75.90 | 8.0 |
| BAJAJ HINDUSTHAN | 10.16 | 9.47 | 7.3 |
| DALMIA BHARAT | 74.00 | 69.40 | 6.6 |
| SAKTHI SUGARS | 18.60 | 17.45 | 6.6 |
| RAJSHREE SUGARS | 34.10 | 32.20 | 5.9 |
| TRIVEN.ENGG.IND. | 46.30 | 43.75 | 5.8 |
| MAWANA SUGARS | 52.90 | 50.10 | 5.6 |
| KM SUGAR MILLS | 10.99 | 10.41 | 5.6 |
| AVADH SUGAR | 466.00 | 441.40 | 5.6 |
| UTTAM SUG.MILLS | 103.80 | 98.60 | 5.3 |
| INDIAN SUCROSE | 26.40 | 25.15 | 5.0 |
| RIGA SUGAR | 11.70 | 11.15 | 4.9 |
| DHAMPUR SUGAR | 143.70 | 137.20 | 4.7 |
| EMPEE SUGARS | 3.12 | 2.98 | 4.7 |
| UGAR SUGAR WORKS | 18.80 | 18.05 | 4.2 |
| KCP SUGAR &INDS. | 26.30 | 25.45 | 3.3 |
| DHARANI SUGARS | 23.05 | 22.35 | 3.1 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%