{"id":18096,"date":"2024-02-22T15:40:09","date_gmt":"2024-02-22T10:10:09","guid":{"rendered":"https:\/\/univest.in\/blogs\/?p=18096"},"modified":"2024-02-22T15:41:15","modified_gmt":"2024-02-22T10:11:15","slug":"sugar-stocks-sour-as-government-raises-frp","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/sugar-stocks-sour-as-government-raises-frp\/","title":{"rendered":"Sugar Stocks Fall as Government Announces Hike in Sugarcane Fair Price"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/sugar-stocks-sour-as-government-raises-frp\/#Sugar_Stocks\" title=\"Sugar Stocks:\">Sugar Stocks:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/sugar-stocks-sour-as-government-raises-frp\/#Why_was_the_decision_made_by_the_government\" title=\"Why was the decision made by the government?\">Why was the decision made by the government?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/sugar-stocks-sour-as-government-raises-frp\/#What_are_the_thoughts_of_analysts\" title=\"What are the thoughts of analysts?\">What are the thoughts of analysts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/sugar-stocks-sour-as-government-raises-frp\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Sugar_Stocks\"><\/span><strong>Sugar Stocks:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The government announced an increase in the fair and remunerative price (FRP) of sugarcane for the 2024-25 season.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This caused sugar stocks to drop as it raised concerns about the industry&#8217;s profitability. The new FRP, which will be applicable from October 1, 2024, will be set at Rs 340 per quintal from Rs 315.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Leading sugar stocks like <a href=\"https:\/\/univest.in\/stocks\/balramchin\/balrampur-chini-mills-ltd-share-price-today\">Balrampur Chini Mills<\/a>, <a href=\"https:\/\/univest.in\/stocks\/eidparry\/eid---parry-(india)-ltd-share-price-today\">EID Parry<\/a>, and <a href=\"https:\/\/univest.in\/stocks\/renuka\/shree-renuka-sugars-ltd-share-price-today\">Shree Renuka Sugars<\/a> faced significant losses in early trading, with other companies like <\/span><b><i><a href=\"https:\/\/univest.in\/stocks\/dalmiasug\/dalmia-bharat-sugar-and-industries-ltd-share-price-today\">Dalmia Bharat Sugar<\/a>, <a href=\"https:\/\/univest.in\/stocks\/dhampursug\/dhampur-sugar-mills-ltd-share-price-today\">Dhampur Sugar Mills<\/a>, and <a href=\"https:\/\/univest.in\/stocks\/triveni\/triveni-engineering-%26-industries-ltd-share-price-today\">Triveni Engineering<\/a> also feeling the effects.\u00a0<\/i><\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_was_the_decision_made_by_the_government\"><\/span><b>Why was the decision made by the government?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The government made the decision to increase the FRP to improve the sugarcane farmers&#8217; income. However, this decision may impact sugar mills&#8217; profitability as they will have to pay more for sugarcane, which could squeeze their margins.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government said in a statement, &#8220;With this approval, sugar mills will pay FRP of sugarcane at Rs 340\/quintal at a recovery of 10.25 percent. With each increase of recovery by 0.1 percent, farmers will get an additional price of Rs 3.32 while the same amount will be deducted on reduction of recovery by 0.1 percent.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Sugarcane (Control) Order of 1966 requires sugarcane farmers to receive FRP instead of the minimum support price for other crops. The Commission of Agricultural Costs and Prices recommends FRP annually for various agricultural commodities, including sugarcane, and the government considers these recommendations before finalizing the prices.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_thoughts_of_analysts\"><\/span><b>What are the thoughts of analysts?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Experts predict that lower rainfall may decrease the overall sugar production in 2023-24 as it has impacted sugarcane plantation. However, this decrease may not be significant compared to the previous year as the crushing season is still ongoing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Praful Vithalani, Chairman of the <a href=\"https:\/\/aista.co.in\/\" rel=\"nofollow noopener\" target=\"_blank\">All India Sugar Trade Association (AISTA)<\/a>, says that the lower sugar production this year is not worrisome as the difference may not be huge as compared to last year, alleviating concerns among sugar stocks investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The FRP hike may cause sugar prices to increase in the coming months. The industry is urging the government to take measures to mitigate the impact on sugar mills and ensure a stable sugar supply in the country.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While the government&#8217;s decision to raise the FRP for sugarcane may have brought cheer to farmers, it has created uncertainty for the sugar industry. The industry is struggling with lower production and rising costs, and the FRP hike only adds to its woes.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">It remains to be seen how the industry will navigate these challenges and ensure the continued availability of sugar for consumers at affordable prices.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sugar Stocks: The government announced an increase in the fair and remunerative price (FRP) of sugarcane for the 2024-25 season.\u00a0 This caused sugar stocks to drop as it raised concerns about the industry&#8217;s profitability. The new FRP, which will be applicable from October 1, 2024, will be set at Rs 340 per quintal from Rs<\/p>\n","protected":false},"author":15,"featured_media":26919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[],"class_list":["post-18096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"metadata":{"_last_editor_used_jetpack":["classic-editor"],"_edit_lock":["1708596592:13"],"_edit_last":["13"],"_thumbnail_id":["26919"],"rank_math_internal_links_processed":["1"],"rank_math_primary_category":["842"],"post_views_count":["343"],"rank_math_seo_score":["75"],"rank_math_focus_keyword":["sugar stocks"],"rank_math_title":["Sugar stocks sour as government raises FRP to Rs 340\/Quintal"],"rank_math_description":["Sugar stocks: The government announced hiking the sugarcane fair and remuneration price by Rs 25 to Rs 340 per quintal for the 2024\u201325 season"],"rank_math_facebook_title":["Sugar stocks sour as government raises FRP to Rs 340\/Quintal"],"rank_math_facebook_description":["Sugar stocks: The government announced hiking the sugarcane fair and remuneration price by Rs 25 to Rs 340 per quintal for the 2024\u201325 season"],"rank_math_analytic_object_id":["577"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2024\/10\/18181948\/posts-1-2.jpg","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/18096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=18096"}],"version-history":[{"count":3,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/18096\/revisions"}],"predecessor-version":[{"id":18100,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/18096\/revisions\/18100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/26919"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=18096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=18096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=18096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}