Balrampur Chini, Dhampur Sugar: FPR could push stocks near breakout levels

On a breakout, sugar stocks may see up to 24 per cent upside

Sugar stocks were in focus on Thursday, a day after the government hiked the minimum price that mills have to pay to sugarcane growers, also known as the Fair and Remunerative Price (FRP), by Rs 5 per quintal to Rs 290 a quintal for 2021-22 (October-September) sugar season. However, the government has ruled out any immediate commensurate increase in the sale price of sugar at least for now.

Major sugarcane producing states such as Uttar Pradesh, Punjab and Haryana fix their own sugarcane price called 'state advisory prices' (SAPs), which are usually higher than the Centre's FRP.

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