Sugar Stocks Fall As Cabinet Hikes Fair And Remunerative Price For Sugarcane By 8%
The move is likely to benefit over five crore farmers, including their families, and lakhs of other persons involved in the sector.
Shares of sugar companies fell on Thursday after the Cabinet Committee on Economic Affairs increased the fair and remunerative price of sugarcane by 8% for the 2024–25 season.
The revised FRP of Rs 340 per quintal at a sugar recovery rate of 10.25%, will be applicable with effect from Oct. 1, according to a release by the Ministry of Consumer Affairs, Food & Public Distribution on Wednesday.
Farmers will get an additional price of Rs 3.32 with each increase of recovery by 0.1%, while the same amount will be deducted on reduction of recovery by 0.1%, it said.
"However, Rs 315.10 per quintal is the minimum price of sugarcane which is at a recovery of 9.5%. Even if sugar recovery is lesser, farmers are assured of FRP at Rs 315.10 per quintal," the ministry said.
The decision is expected to benefit more than five crore sugarcane farmers, including family members, and lakhs of other persons involved in the sugar sector, according to the ministry.
Bajaj Hindustan Sugar Ltd. declined the most during the day so far, followed by Uttam Sugar Mills Ltd., the Ugar Sugar Works Ltd., which were down over 2%.
Dalmia Bharat Sugar & Industries Ltd., Shree Renuka Sugars Ltd., Balrampur Chini Mills Ltd. and Dhampur Sugar Mills Ltd. were also trading lower.
