Sugar stocks fell sharply on Thursday after the government announced an 8% increase in the sugarcane Fair and Remunerative Price (FRP) paid to farmers for the 2024-25 season
The central government on Wednesday hiked sugarcane FRP by Rs 25 per quintal to Rs 340 per quintal for the 2024-25 season.
At 9.20 am, Balrampur Chini Mills was trading at Rs 377, indicating a decrease of more around 1 percent. Similarly, EID Parry and Shree Renuka Sugars also experienced a decline, along with other companies such as Dalmia Bharat Sugar, Dhampur Sugar Mills, and Triveni Engineering.
With this approval, sugar mills will pay FRP of sugarcane @ ₹ 340/quintal at recovery of 10.25%. With each increase of recovery by 0.1%, farmers will get additional price of ₹ 3.32 while the same amount will be deducted on reduction of recovery by 0.1%. However, ₹ 315.10/quintal is the minimum price of sugarcane which is at recovery of 9.5%. Even if sugar recovery is lesser, farmers are assured of FRP @ ₹ 315.10/quintal.
