Sugar stocks fall after UP raises crop prices

Mon Dec 10, 2012 12:52pm IST

A worker spreads sugar inside a sugar factory at Sanyan village in Gujarat April 23, 2012. REUTERS/Amit Dave/Files

A worker spreads sugar inside a sugar factory at Sanyan village in Gujarat April 23, 2012.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

Reuters Market Eye - Shares in Uttar Pradesh-based sugar companies were trading lower after the state raised the price at which sugar mills buy the new season crop by up to 16 per cent to 290 rupees per 100 kg.

Morgan Stanley said in a note the hike in the price of cane in the current sugar season by 2,920 rupees per tonne is much higher than expectations of a 2,820 rupees pertonne hike.

"Profitability of north Indian millers is likely to be dented," it added.

The hike in procurement price will increase the cost of production, which, at around 35,000 rupees per tonne, is comparable to the current spot sugar prices, implying "no profits for the sugar division at the operating level," Morgan Stanley added.

Shares of Balrampur Chini (BACH.NS) fell 5 percent and Bajaj Hindusthan (BJHN.NS) was down 1.25 percent, while Shree Renuka Sugars (SRES.NS) fell 2.1 percent.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

Monsoon Season

Monsoon Season

India's 2014 monsoon ends with double-digit rain deficit .  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage