Stocks in sugar companies mostly rose Friday morning after the govt has hiked the minimum selling price (MSP) of sugar by Rs2 per kg.
The Ministry of Consumer Affairs, Food & Public Distribution has made a significant decision of hiking MSP by Rs2 per kg to Rs31 for the year 2019-20, so as to give more liquidity to the sugar millers enabling them to pay the arrears to the sugarcane farmers.
This was reported by the Cabinet Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan. He said, a mechanism will be put in place to make sure the benefit provided to the industry is passed on to the sugarcane farmers. The move will benefit Sugar farmers to help clear their arrears of about Rs20,000 crore.
Reacting the step of the government, during morning session Friday, shares of Sugar companies such as Uttam Sugar Mills rose near 3 percent, Bajaj Hindustan Sugar rose 1.40 percent. Sakthi Sugars rose 1.20 percent, Avadh Sugar and Dalmia Bharat Sugar jumped 1 percent each, among others. Also, at the same time, some other sugar stocks see unchanged during session Friday.