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BUZZ-Indian sugar stocks fall on report govt may raise fair price for sugarcane

BUZZ-Indian sugar stocks fall on report govt may raise fair price for sugarcane

** Shares of Indian sugar producers fall in afternoon trade on a report that govt may increase fair and remunerative price (FRP) for sugarcane by 20 rupees to 275 rupees per quintal

** FRP is the minimum price that sugar mills have to pay to farmers

** Raising FRP will definitely hurt margins as costs for these companies will go up, said an analyst with a domestic brokerage who did not wish to be quoted

** E.I.D-Parry (India) Ltd falls as much as 4.1 pct to 214 rupees, while Dhampur Sugar Mills Ltd drops up to 4.3 pct to 80.6 rupees

** Dalmia Bharat Sugar And Industries Ltd declines as much as 5.9 pct to 52 rupees; down over 58 pct this year as of last close

 

Source: Reuters – Published on: 16th July 2018