Sugar stocks gain in first half of the session

The prices of sugar have been increasing for quite a long time, giving a high to sugar manufacturing companies. Meanwhile, the sugarcane crushing season is expected to peak over the next couple of months.

There may be high prices offered for sugarcane relative to paddy and wheat over the last six years through the fair and remunerative pricing (FRP) policy that favoured both sugarcane and sugar production. The FRP of sugarcane increased from about Rs 139 per quintal in 2010-11 to Rs 230 per quintal in 2015-16, an annualised growth rate of 10.6 per cent.

Indian Sugar Mills Association (ISMA) estimates on domestic production fell from 28 million tonnes at the end of 2014-15 to about 25 million tonnes in 2015-16. According to ISMA estimates, sugar production in the 2016-17 season that began on October 1, 2016 will be close to 234 lakh tonnes, around 6 per cent lower than last year.

The following sugar stocks are shining on intra-day basis

Upper Ganges Sugar & Industries: 9.99 per cent

Oudh Sugar Mills: 15.58 per cent

Dwarikesh Sugar Industries: 9.56 per cent

Balrampur Chini Mills: 4.27 per cent

Renuka: 3.11 per cent

Bajaj Hindusthan Sugar: 2.1 per cent