InvestorQ : Why did most of the sugar companies like Balrampur, Dhampur and Dalmia rally so sharply on Friday 05 June?
Anu Biswas made post

Why did most of the sugar companies like Balrampur, Dhampur and Dalmia rally so sharply on Friday 05 June?

Answer
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Neelam Naik answered.
4 months ago


Most sugar shares on Friday were up by 15-20%; large on expectations that government would hike the minimum selling price (MSP) for sugar. The government has done that already for most of the Kharif crops. Sugar cropping follows a unique cycle of October to September which is also known as the sugar year. On 05 June Dalmia Bharat Dhampur Sugar and Balrampur Chini were all up in the range of 15% to 20%. Sugar derives nearly 70% of its demand from corporate sales and that is expected to pick up with malls and restaurants opening from next week. Government is expected to raise the MSP of sugar by around Rs.2/KG to help clear the cane dues of Rs.22,000 crore. Government has also allowed additional exports of 3569 tonnes, although the export subsidies have forced some sugar manufacturers like Brazil and Thailand to approach the WTO.