Sugar Stock

Select sugar stocks like Balrampur Chini, Dwarikesh Sugar and Renuka had jumped up to 6-fold post the Covid-19 decline; However, off late the stocks have corrected sharply post export limitations.

Analysts believe that the government's curb on 10 metric ton sugar exports would not cause a major impact as their expectation was lower than the limit for this year.

Experts feel this could keep prices of major farm commodities and products dependent on them, such as poultry and meat, at an elevated level for quite some time

Magadh Sugar & Energy, Rana Sugar, Uttam Sugar Mills, KM Sugar, Andhra Sugar, Mawana Sugar and Shree Renuka Sugar surged 10 per cent to 15 per cent on the BSE.

With a favourable mix of ethanol towards B-heavy/juice (feedstock) coupled with higher sugar realisations; operating margins of sugar companies are expected to improve.

Shares of Triveni Engineering hit a new high of Rs 285.30, on rallying 9 per cent in intra-day trade. The stock zoomed 313 per cent from its 52-week low of Rs 69 touched on February 16, 2021.

Tight global demand-supply situation, favourable government policies and continuous push for higher blending will keep the inventory levels under control and sugar prices firm

Balarmpur Chini, Triveni Engineering, Shree Renuka, Dhampur Sugar, Dalmia Sugar and Avadh Sugar gained in the range of 4 per cent to 8 per cent in Tuesday's intraday trade

ICICI Securities believes this would encourage sugar companies to further add sugarcane juice and grain-based ethanol capacities

Lower production in Brazil and Thailand, the two largest sugar exporters in the world, could result in higher opportunities for domestic exporters

The industry is undertaking huge capacity expansion programmes to meet the ethanol requirement of 10 billion litre by 2025

KCP Sugar & Industries, Uttam Sugar Mills and Avadh Sugar & Energy were up between 8 per cent and 18 per cent on the BSE

Avadh Sugar & Energy, Uttam Sugar Mills, Triveni Engineering & Industries, Mawana Sugars, Shree Renuka Sugars and Dhampur Sugar Mills were up in the range of 4 per cent to 7 per cent on the BSE.

According to a Reuters report, India's 2019-20 sugar production should fall to 26.9 million tonnes, 1.3 million tonnes below an August projection.

Attractive returns in the cattle-feed market are prompting farmers to sell sugar cane as fodder

It also decided to keep Fair and Remunerative Price (FRP) of sugarcane unchanged at Rs 275 per quintal for 2019-20 marketing year

Shree Renuka Sugars, Uttam Sugar Mills, Dalmia Bharat Sugar, Ugar Sugar Works, Dhampur Sugar Mills, Magadh Sugar & Energy, and Dwarikesh Sugar were up in the range of 6-12 per cent.

Earlier in March, the government announced a soft loan of Rs 12,900 crore for sugar mills to create ethanol capacity.

Charges will be reimbursed to mills at Rs 29 per kg of sugar price, as opposed to the all-India average cost of production of Rs 35-36 a kg

Triveni Engineering, Dwarikesh Sugar, Balrampur Chini, Kesar Enterprises, Magadh Sugar and Simbhaoli Sugars were trading down in the range of 5% to 8% on the BSE at 02:27 pm.