July 16, 2020
In a meeting with Ministries, today, the shares of sugar companies are in focus, supported by a rise in the minimum selling price (MSP) of sugar from Rs.31 per kg to Rs. 33 per kg. This hike is likely to improve the revenue margins of the sugar mills, the meet said.
The proposal, which the govt think tank NITI Aayog too supported, was kept before a group of ministers in a meeting conducted on 15th July. This rise in MSP has been done to help millers clear cane dues of about Rs 22,000 crore to farmers.
As per the data issued by Indian Sugar Mills Association (ISMA), the sugar production of India is likely to be around 320 lakh tons in FY21, out of which, India would export around 60-70 lakh tons.
Minimum Support Price (MSP) is a form of market intervention by Government of India to cover agricultural producers against any sharp fall in farm prices.
Supported by this favourable announcement, the major sugar stocks were trading in green during Thursday’s trading session. EID Parry (India) gained two per cent, Balrampur Chini Mills gained three per cent, Shree Renuka Sugars gained two per cent, Triveni Engineering & Industries Ltd gained two per cent, Bannari Amman Sugars gained four per cent and Dhampur Sugar Mills gained five per cent.