Sugar stocks turn sour
JULY 16
Shares of sugar producers fell in the afternoon trade on a report that the government may increase the fair and remunerative price (FRP) for sugarcane by Rs 20 to Rs 275 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 fell as much as 4.1 per cent to Rs 214, while Dhampur Sugar Mills Ltd dropped up to 4.3 per cent to Rs 80.6. Dalmia Bharat Sugar and Industries Ltd declined as much as 5.9 per cent to Rs 52; the stock had fallen over 58 per cent this year as of last close.
Source: Business Line – Published on: 16th July 2018