Sugar Shares Jump As Government Plans To Hike MSP For 2024-25 Season

Major sugar company stocks that are listed on the equity market after a dip in fortunes in the early hours of the day have jumped significantly at the halfway mark of the day's trade on Wednesday, June 19.

Amongst the top-performing sugar shares, EID Parry's shares surged 3.62 per cent or Rs 26.55. This took the cumulative value of the sugar company's shares to Rs 759.90.

Shree Renuka Sugar was one of the biggest gainers, as the Mumbai-headquartered company gained 7.82 per cent or Rs 3.74, taking the cumulative value of their individual shares to Rs 51.55. Then comes the Kolkata-based Balrampur Chini Mills, which gained 3.26 per cent or Rs 14.00, taking the value of individual shares to Rs 443.05.

Triveni Engg Gains Over 9%

Triveni Engineering, from Uttar Pradesh, a state that is one of the largest sugar producers in the country, made the biggest gain of a massive 9.02 per cent or Rs 34.70, taking its share value to Rs 419.50.

Bajaj Hindusthan Sugar also made gains at the equity market. The price of shares gained 6.32 per cent or Rs 2.55, taking the cumulative value to Rs 42.88.

This rise, after the initial slump, comes amidst reports suggesting the possibility of the central government increasing MSP or Minimum Selling Price on crops in the upcoming budget.

Industry Demands In Focus

The sugar sector is especially in focus, as the powerful industry's National Federation of Cooperative Sugar Factories or NFCSF, asked for an increase in MSP on sugar. The federation has pegged its demand at 42 per kg.

Some of the other issues concerning the industry are the country's ethanol policy and restricting exports, to support domestic supply. Apart from the alcohol blending exercise, the emphasis is also on other sustainable fuels, including a policy on producing green hydrogen.

In addition, other demands that have been placed by industry bodies, in the public domain, also touch upon regulatory issues in the sector.