Sugar stocks fall after UP raises crop prices

Tags: News
Shares in Uttar Pradesh-based sugar companies were trading lower after the state raised the price at which sugar mills buy the new season crop by up to 16 per cent to 290 rupees per 100 kg.

Morgan Stanley said in a note the hike in the price of cane in the current sugar season by 2,920 rupees per tonne is much higher than expectations of a 2,820 rupees pertonne hike.

"Profitability of north Indian millers is likely to be dented," it added.

The hike in procurement price will increase the cost of production, which, at around 35,000 rupees per tonne, is comparable to the current spot sugar prices, implying "no profits for the sugar division at the operating level," Morgan Stanley added.

Shares of Balrampur Chini fell 5 percent and Bajaj Hindusthan was down 1.25 percent, while Shree Renuka Sugars fell 2.1 percent.

EDITORIAL OF THE DAY

  • The solution to tackling recurrent droughts is in managing consumption of water, not its overuse

    A staggering 33 crore people or more than a quarter of the country’s population are in the grip of drought and consequently, face drinking water sho

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Tushar Gandhi

An unexplored side of rural enterprise

What is rural enterprise? Ask this qu­estion and 9 out ...

Kuruvilla Pandikattu

Black and white of morality

Would you kill one innocent person to save five? Choose ...

Shona Adhikari

Let's head to Bangalore & catch up on art

Bangalore art scene is bang in the middle of news, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture